A deal between the Santa Clara Valley Transportation Authority
and Union Pacific Railroad holds the promise of five additional
round-trip commuter trains to the South Valley – as soon as there
is a demand for them
A deal between the Santa Clara Valley Transportation Authority and Union Pacific Railroad holds the promise of five additional round-trip commuter trains to the South Valley – as soon as there is a demand for them.
“This is a a great deal for Morgan Hill, San Martin and Gilroy,” said Santa Clara County Supervisor Don Gage, who is also on the VTA Board of Directors. “Now we can deliver more Caltrain service to the South County when needed, and we’ve preserved essential railroad right of way for future VTA and Caltrain projects.”
The $47-million deal grants the VTA right of way on the Union Pacific tracks for 20 years, with options to renew in perpetuity. Union Pacific can not opt out of the contract at any time and will pick up the tab for relocating shippers and removing old railroad ties and rails.
The transaction is an up-front cash deal. Gage said that the budget-crunched VTA has had the money in reserve since negotiations began four years ago.
When the county completes construction on a second track, it will be able to run 10 daily commuter round-trip trains to the end of the line in Gilroy. Currently, there are four trains running daily, with the capacity for a fifth when necessary.
Ridership between Gilroy and San Jose has been dropping precipitously for several years according to Caltrain officials. Daily ridership fell from 988 in February 2003 to 667 in February 2004. The drop in ridership closely tracked the drop in jobs in Silicon Valley.
