“We’re continuing to have discussions with the Senate staff today, but as we continue to study this very complex piece of legislation, our concerns have increased. In fact, without additional changes, we cannot support the bill,' said Jim Young, chairman and chief executive officer of the western railroad.
His comments were similar to those of CSX Corp. CEO Michael Ward, who Wednesday said the Senate bill to reauthorize the Surface Transportation Board “is not balanced.”
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| Young |
“And that’s just the capital installation cost. It will cost us millions more annually to maintain this system. The PTC mandate is an example of well-intended legislation with negative unintended consequences,” Young said.
“Union Pacific’s shareholders cannot be expected to bear the financial burden of PTC. It must be passed onto our customers to the extent that market will permit, especially those chemical customers who drive the vast majority of our installation requirement,” he continued. “Our position, whether the discussion is PTC or other regulations, is that we must be allowed to earn adequate returns and attract new capital.
“With PTC for example, if we cannot be fully compensated, we will cut discretionary capital and our ability to expand and grow with our customers will be reduced. And while there seems to be unanimous agreement in D.C. that more freight rail is needed for the good of our environment, our nation’s transportation infrastructure and our economy, new regulations and draft legislation that are coming forth do not support that vision and in many ways could impede it. So stay tuned.”
