NEWSWIRE: New Mexico says it’s backing out of 2008 Raton purchase

Comments on this anyone?

ANTA FE, N.M. — New Mexico’s governor claims BNSF Railway never closed on the sale of its Raton Pass line, and she said the state no longer wants it, the Albuquerque Journal has reported. Republican Susana Martinez is also insisting BNSF pay back $2.35 million the state paid, half the “earnest money” tendered in the 2008 deal.

The state agreed to purchase the route from Lamy, N.M., 182 miles north to the Colorado border as BNSF diverted its freight trains to other routes. Today, just Amtrak’s Southwest Chief uses the line. The previous governor, Democrat Bill Richardson, offered to buy the line so the Chief could continue to use it, and for potential future services northward into Colorado.

Martinez’s administration contends the line “would have saddled New Mexico taxpayers with a legacy project from the previous administration… with very little, if any, return on investment.”

The state paid BNSF $5 million to buy the line, but Martinez alleges BNSF failed to close on the deal, a breach of the purchase agreement. BNSF spokesman Joseph Faust said the railroad hasn’t yet received the state’s letter, saying, “We expect to continue to work with the New Mexico DOT.”

The Raton Pass route served as Atchison, Topeka & Santa Fe’s primary passenger route, with most freight trains taking a more southerly route through Clovis, N.M. As successor BNSF has added double track to the Clovis route, it diverted the last freight trains from Raton.

It is very politically charged, of course…but we don’t know if this is a Republican saying “no” to anything proposed by a Democrat or if it is an honest assessment of a situation. This is a news report only telling what is happening without any real editorializing…and that’s a good thing.

It makes me wonder two things…

  1. Will BNSF give back the 2.5 million? What are the legal grounds/implications here?

  2. What does this mean for the future of Raton?

Not the least bit surprized.

disappointed you bet!! This could really change the RR map around Raton??

As far as a give back it all depends on the contract??? and maybe a court case?

So do you think abandonment on Raton is a real possibility now? Any change Amtrak would fund upkeep of the line by themselves?

Interesting - Giving the ‘Earnest’ money back would depend on the wording of the contract. Many times earnest money refunds are only made if the contract states the the buyer will get a refund if they failed to qualify for the bank loan. In this case the buyer failed to complete the payments…

I suspect the Raton line will be up for closure if Amtrak can not come up with the money to fund the maintenance. BNSF really does not want Amtrak on the freight trans-con, but I suspect they do not want to pour money into the Raton line either. I always thought the Rail Runner trains seemed a little bold for the line. I could understand the area around Albuquerque maybe getting commuter service, but local/commuter passenger trains up to the Colorado border?

Jim

Actually didn’t BNSF when the first stopped freight on Raton invite Amtrak to switch to their freight route? And Amtrak said no thank you that they wanted to keep the current freight route?

I know that on the Raton route in CO due to lack of maintenance speeds have already slowed from 80 MPH to 60 MPH and BNSF said they aren’t fixing it but I’m curious about some things…

Unlike new Amtrak service, the southwest chief is a holdover train from the glory days of passenger travel - back when the ICC regulated everything. Since BNSF never got permission to “drop” the train from the ICC, the southwest chief has special rules.

What I wonder is whether BNSF could be forced to keep the Raton route open because of these special rules, or if Amtrak would be forced to move to the BNSF route. My understanding is that Amtrak and BNSF have two separate thoughts here…

Also makes me wonder if BNSF is forced to keep Raton open would they start running freight again…

Another question is this - so BNSF sold the whole line from Lamy to Raton to NM for $5 million? I’m not a railroader

BNSF maintains the line solely at Amtrak’s expense, and BNSF will not route any traffic over the line to avoid having to contribute to the expense. If Amtrak wants to move to the southern route BNSF wants money for more track capacity. BNSF offered the “sweet” deal because of Amtrak. BNSF can’t abandon because of Amtrak, and would have to allow Amtrak to move without the additional payment if they wanted to abandon.

I must say, Beaulieu, your post was an excellent one …

With that said …

By Amtrak being limited now to only 60 M.P.H. on the Raton line, the question must be asked: Is the signal system still even in effect? According to the General Code of Operating Rules (GCOR), passenger trains are authorized to travel up to 59 M.P.H. in dark territory. 59 and 60 are so close together, the above question arises. It would seem if BNSF is in fact running a skeleton route just for Amtrak, they wouldn’t even have the signals operating anymore (though that would need government approval). Anybody have information on whether the block signals are still working or not on that line?

By comparison … in Pomona, CA, the old Super Chief Route that many passenger trains on the Raton line use to traverse while in California:

Looking east from Garey Ave:

West from Garey Ave. and the old Pomona depot:

In 1982, it was known this main track was rated 65 M.P.H. for passenger trains under Automatic Block Signal (ABS). In 2011, the ABS is still in effect, but the jointed rail track speed is now only 40 M.P.H. Only a local passes here today, as the line has been severed in Arcadia (near Pasadena) …

It should be noted that we are referring to the portion from Trinidad, CO to Lamy, NM as being solely used by Amtrak. East of Trinidad, some BNSF freights share the route. The distance from Trinidad, CO to the New Mexico border is not very far.

Seems like a case of grandiose plans and massive financial overreaching by New Mexico’s pols and 'crats, but then someone intelligent took a long, hard look at the numbers. After which cold reality set in, and New Mexico welshed on its deal so fast it made the TRAINS Magazine Newswire. A skirmish I don’t see BNSF winning. Too bad for BNSF, because one suspects that it will eventually be forced to to rub the SW Chief (or whatever the train’s current moniker is) via Amarillo. Unless Amslak is forced to give up certain long distance trains.

[edited by selector]

Or is it grandstanding and obstructing by [politically oriented people]? We outside and away from the situation are only guessing. Was the previous administration farsighted and understanding of the needs of the future or doing their own grandstanding with someting glittery and dreamy? Or is today’s administration truly correcting a financial oversight?

It would be great if this very scenic route still hosted lots of trains - both passenger and freight. We recently drove down I-25 from Pueblo, CO to Albuquerque. The area is so devoid of industry and population that it is really hard for even a railfan to justify the expense of keeping the line open. If I were a New Mexico taxpayer, I don’t think I want to spend the money. As a federal taxpayer I’m not sure I want to pay for the maintenance of all those miles of track for two trains a day - and I love trains. Sad as it would be, this line may go the way of Saluda Grade and Tennessee Pass.

The track upon which the SWC operates which would be the responsibility of BNSF if the SWC were rerouted through Amarillo is from Newton, KS to Lamy, NM a distance of about 635 miles. Currently BNSF operates freight service on the 356 mile segment from Newton to La Junta, CO and apparently entends to continue that service. But south from La Junta to Lamy they have altered their business so that they have no need for the 279 miles between them.

Also BNSF has told AMTRAK that it does not need the ATS (automatic train stop) signal system on the 356 mile segment for the operation of its freight trains. AMTRAK has been notified that certain parts, but not all, of this 356 mile segment need upgrading (new rail) if trains are to operate at speeds greater than 60 MPH. That is why the SWC has been running at 60 MPH over that portion which needs upgrading. but can continue to run at 90 MPH where the track and signal system permit safe operation.

The SWC station stops which would be eliminated if it were rerouted through Amarillo are: Hutchinson, KS; Dodge City, KS; Garden City, KS; Lamar, CO: La Junta, CO; Trinidad,CO; Raton, NM; Las Vegas, NM; Lamy (say Santa Fe), NM and Albuquerque, NM all of which place politics into play.

Additionally, if the reroute that has been offered to AMTRAK were implemented there would have to be passenger facilities created for those station stops comtemplated on the new route. Which BNSF would not pay for but would provide the space at locations which would make them safe from the very busy freight operations on that line. There is no ATS on the reroute line so 79 MPH is maximum.

My take on this current news is that the contracural Agreement signed by the State and BNSF will govern the outcome. It would astonish me if BNSF left any loopholes in that Agreement which would allow the State to withdraw under the conditions now in the news. More likely, in my opinion, is that the State is now trying to use its political power to get BNSF to

If the BNSF remains the owner of this route, doesn’t that put Amtrak in the position of having to finance the purchase and installation of whatever trackside equipment required for PTC? I can understand Amtrak not wanting to abandon the route as then they miss Albuquerque as a stop, but is PTC the factor that finally forces a route change?

In thinking about it, I guess I’ve never seen cost estimates that seperate PTC costs incurred by location of the equipment – on the engine, trackside or in a central processing facility.

I never understood why the state of New Mexico wanted to buy this line. As sated above, there’s not enough in the area to justify a rail line.

A railroad has to have a purpose, and the line from La Junta to Lamy no longer has a purpose. It can’t be justified by two money loosing passenger trains per day. Rip it up and either relocated the rail or sell it for scrap. Salvage what can be salvaged and let the land return to nature. Accept the inevitable.

It’s not that NM wanted to buy the line. In order to purchase the Belen to Lamy line segment, the state had to accede to BNSF’s demand that the entire line (Belen to Trinidad) be purchased.

So who is throwing the baby out with the bathwater?

[quote user=“jthage75”]

It’s not that NM wanted to buy the line. In order to purchase the Belen to Lamy line segment, the state had to accede to BNSF’s demand that the entire line (Belen to Trinidad) be purchased.

jthage75, Please cite your source for this “information”.

The former Governor of NM is on record as wanting to establish a passenger corridor between Cheyenne- Denver-Colorado Springs and on to Albuquerque. I am concerned that those with political motivations are attempting to paint a picture here that is not supported by the facts. However, I am willing to be convinced with authentic information, not statements made in hope they will be found acceptable without further inquiry.

[:$] Jack, the events of the past month have put me in a busy time with doctor visits for my bride. COPD and cataracts on both eyes. She is doing better now . I had been taking her to PHX. Now , today I put the book in the snail mail . That is quite an interesting post you wrote today.

Respectfully, Cannonball ( Jim)