Trackage rights are more than just a contract to operate over somebody else's track, they are also a way of providing service to a point by the carrier operating on those rights. If you look at it that way, trackage rights need to be formally abandoned, the same as trackage owned by the carrier.
I haven't seen the new issue yet, and am certainly not familiar with the track in question, but... Based on the numerous mergers, spinoffs, start-ups, and everything else that has happened over the years, I'd opine that those rights might date back well before the begining of the DM&E. The use of the term "abandon" suggests to me that it was more than just an agreement/contract.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
You would have to read the contract between UP and DM&E....bet the UP accounting department doesn't have to send DM&E a bill for those minimum expenses (primarilly maintenance and dispatching) anymore with the obligatory handling and labor expense multipliers.
On page 8 of the August 2009 Trains magazine under "Abandonments & Acquisitions", I see that DM&E filed for permission to abandon 45 miles of UP trackage rights.
My questions are:Why go through the bother of "abandoning" trackage rights? Is there any cost to the carrier (in this case DM&E) who possesses the rights?Are there any advantages to giving up those rights?
Our community is FREE to join. To participate you must either login or register for an account.