Re: California Northern's West Valley Sub
Author: SPMarketing
Date: 06-23-2012 - 09:59
Here we go again. Unless the orginal lease has changed over the years since we put it together the CFNR still has options left to run. As for UP takeover, the agreement calls for UP or whomever to make the CFNR whole for all investments since we started the railroad in 1993. This makes a takeover by the Class I a bit harder. In some cases where large amouints of capitol investment is needed the shortlines will negotiate a longer lease term in return for those investments. In addition, again unless the agreements have changed, the UP has trackage rights over the West Valley line that can be used anytime for the appropriate fee.