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December 1986 - Page 5


I n teresting VIsitors to the Burlington Northern main line were AT&SF B32-9s 7400-7402, seen leading a train westbound at Fairchild, Wash. , on September 9, 1986.

-HARLEY KUEHL

Rio Grande & SFSP Strike "Postmerger" Bargain
I n late September the Denver & Rio Grande Railroad and the Santa Fe South ern Pacific Corp. announced that an agree ment had been reached regarding a lease, trackage rights and agency solicitation pact, contingent upon merger approval. The agreement is fairly complicated, and includes a number o f contingency provi sions. The basic items it provides are: 1 . Lease of the SP line between Ogden, Utah, and Roseville, Calif. (the Overland Route); Flanagan, Nev., to Klamath Falls, Ore. (the Modoc line). 2. The 'Grande would get trackage rights between Roseville and Oakland, providing that they make ar rangements for a yard facility in the Bay Area. 3 . As to other reported areas, such as or the San Joaquin Valley, Northern Calif nia and Oregon, the SPSF would act as agent for the Rio Grande, soliciting traffic, and operating cars to connect with the 'Grande at Klamath Falls or Roseville, for example. The Rio Grande would receive a higher share of the revenue than is cur rently possible under the normal division of the rate. Note that the above conditions are writ ten in the future tense, as the agreement would only become operative on granting of the Santa Fe-Southern Pacific merger. The Rio Grande is now working actively on behalf of the merger. The Rio Grande would have the option to review the con tract after one year. Rio Grande sources have stated that they

would expect that their train to Klamath Falls would continue on to Eugene, Ore ., for operating purposes. This conforms to current practice, where a train that is made up in Eugene operates south through Klamath Falls, and continues on to Ogden via the Modoc line. At Ogden, the train is turned over to the Rio Grande for move ment east. The immediate vision some fans had of black and orange Rio Grande units run ning up and down the length of California seems to have faded quickly when more of the details of the agreement were learned. Still, an expansion of route miles through Nevada and into California and Oregon is or going to create a need f additional crews, staff and support. Things were much sim pler when the Rio Grande was a two division railroad operating between Den ver, Pueblo and Salt Lake. In today's mar ket, however, operating from the Bay Area to Kansas City may help to ensure that ective competitor. they can remain an eff

Rail Briefs .
An application to merge the 3, lOO-mile K aty r ailroad into the giant 22,000-mile Union Pacific system is expected to reach the ICC by mid-November. . . . Depend ing on the degree of deregulation even tually granted by the Canadian govern ment, that nation's two major railroads may try to rid themselves of up to 1 6,900 miles of track. CN might scrap 44% of its 22,500-mile system and CP Rail would consider abandoning up to 47% of its 1 4,98 1 -mile network. One spinoff, an ex CN line in Alberta to be known as the C entral Western Railway, i s set to start

A s a result of high water on SP's line across the Great Salt Lake, its trains used UP (ex-WP) rails for over two months this year. Here a repainted SD40R leads the 20GOAT as it detours over the UP main at Cliffside, Nev., on August 16, 1986.

PACIFIC RailNEWS 5

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