Union Pacific Railroad has made some progress in its effort to transfer three of its commuter rail lines to Metra control. But one major issue remains — how much Metra will pay for using the tracks, platforms and rail yards, which Union Pacific will continue to own.
The fate of the deal is important in Evanston, since the UP-North line that runs through the city is one of the lines affected.
For the past six years, the freight railroad has been trying to get out of the commuter rail business. Under the transfer plan first envisioned in 2023, UP would keep ownership of the rail tracks and some stations, while Metra would operate the trains. Metra has this kind of arrangement with freight railroads for North Central Service, SouthWest Service and Heritage Corridor lines.
The two entities are currently in the process of moving Union Pacific employees who handled the commuter rail operations over to Metra. But according to UP spokesperson Robynn Tysver, the two entities made several attempts to figure out the track usage issue, to no avail.
There is also the matter of the ultimate fate of three Evanston stations, which Union Pacific still owns. Tysver indicated that the freight railroad isn’t interested in selling the stations, but it is open to Metra and/or the City of Evanston leasing them.
Long transition
The current arrangement dates back to the 1970s, when the Regional Transportation Authority was set up to subsidize private-public transit services. Chicago & North Western Railroad, which controlled the three lines at the time, agreed to keep the service going on behalf of what would eventually become Metra, using its own crews to run and maintain trains. When Union Pacific bought the company in 1995, it continued the arrangement.
But in 2019, UP decided to get out of the commuter rail business — something that Metra initially resisted. In 2023, the two sides agreed to begin the transfer, which was supposed to be completed in March 2024.
Last fall, mechanics and customer service agents transferred to Metra. According to UP, the transfer of train engineers, conductors and other employees involved in keeping trains running are expected to be completed by April.
During its Feb. 19 meeting, the Metra Board of Directors approved an amendment to the existing agreement that sets April 16 as the date of the transfer. The agreement was approved as part of a larger consent agenda, unanimously and without discussion.
Once the transfer is complete, Union Pacific will continue to dispatch the trains and maintain the tracks.
But the question of how much Metra will pay UP for the right to use tracks, platforms and other infrastructure remains unresolved.
“In August 2024, Metra and Union Pacific agreed to mediate the compensation matter before the Surface Transportation Board,” a Union Pacific press release indicated. “The mediation, which had been extended several times, ended Jan. 31, 2025, without an agreement. Union Pacific extended an offer to Metra to use binding arbitration to resolve the issue.”
Liisa Stark, UP’s vice president of public affairs, stated that “we are committed to reaching a financial agreement this year that is fair to both parties.”
Tysver declined to share any further details on the compensation issue.
Station ownership
While UP doesn’t own all of the stations on its lines, it owns the three stations in Evanston: the Main Street, Davis Street and Central Street stations. Tysver said the UP-owned stations were never part of the transition, but she said the railroad is willing to lease them.
“Union Pacific seeks to earn a fair market return for all its properties and intends to seek compensation for use of the stations,” she said. “Metra or the City of Evanston is free to make an offer to lease the station properties.”
All three station buildings have waiting rooms and spaces that have been rented. Davis Street station’s ground level is home to the Alcove Evanston restaurant, while the other two stations’ retail spaces are unoccupied.
Union Pacific, Metra at impasse over fees as employee transfer moves forward is from Evanston RoundTable, Evanston's most trusted source for unbiased, in-depth journalism.