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Sunday, May 31, 1998

Regulators OK Amtrak freight business

WASHINGTON (AP) -- Amtrak won government approval Friday to significantly expand its delivery of express packages and time-sensitive freight shipments.

The Surface Transportation Board issued the ruling after the Union Pacific and other freight railroads asked it to limit Amtrak's service to small packages and shipments of no more than 8,000 pounds.

Union Pacific sought the ruling after learning that Amtrak was competing with it by carrying express packages and freight over Union Pacific tracks that Amtrak uses primarily for passenger service.

The board denied the freight railroads' request but said Amtrak must remain primarily a passenger service. Last year, Amtrak did $70 million worth of mail and express business, the bulk of it mail.

Amtrak spokesman Cliff Black said the ruling will enable Amtrak to "reduce its dependence on federal operating subsidies and, consequently, make it more secure as a national intercity passenger rail system."

 

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