Railroad network operator Union Pacific Corp. (UNP), Tuesday said it closed a land transfer deal with the public transportation service provider Regional Transportation District or RTD in Colorado.
Union Pacific expects to record a pre-tax gain of nearly $115 million related to the transaction in the second quarter of 2009.
Union Pacific is on a 12 year FasTrack rail project to expand rail and bus service throughout the RTD service area. According to the agreement, RTD would involve in Union Pacific's entire Boulder Industrial Lead that would extend from Brighton Boulevard in Commerce City to Boulder, a distance of approximately 33 miles.
Omaha, Nebraska-based Union Pacific has already reserved a rail easement to continue serving its freight customers on the first eight miles of the lead and also expects to make freight operations in specified time limits, when RTD begins construction.
On November 7, 2008, the FasTrack committee of the RTD Board of Directors approved a preliminary agreement related to a package of property acquisitions and relocation from Union Pacific for the FasTracks program with value of about $185 million in cash and direct costs to Union Pacific Railroad.
UNP closed Tuesday's trading at $52.06, down $0.62 or 1.18% on a volume of 5.677 million shares on the NYSE. In the after hours, the stock lost $0.08 or 0.15%, to trade at $51.9317.
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