Railway Express, Union Pacific agree on plan

The Union Pacific Railroad confirmed on Tuesday that it had reached agreement with the Las Vegas Railway Express on a plan that could lead to restoration of passenger trains to the Los Angeles area.

The terms call for Las Vegas Railway paying $56.7 million to cover the cost of designing and building improvements to the tracks to ensure that passenger trains do not interfere with the Union Pacific's freight operations. When Amtrak ran the service before halting it in 1997, delays were frequent because of congestion .

The agreement also requires Las Vegas Railway to show that Burlington Northern Santa Fe has consented to the use of its tracks. The trains would run from Las Vegas to Daggett, Calif., on Union Pacific, then to Fullerton, Calif., on Burlington Northern Santa Fe.

The deal, outlined in a Securities and Exchange Commission filing on Nov. 20, gives Las Vegas Railway two years to start service. Union Pacific spokesman Aaron Hunt said there are other conditions but did not specify.

Las Vegas Railway's third quarter report shows only $1 million in current assets after posting a net loss of $870,000. The company said in its third quarter report that is has retained a "nationally recognized" investment bank to raise the capital but did not divulge the name.