OMAHA, Neb. – Union Pacific Corporation today announced the closing of the sale of land and track to the Santa Clara Valley Transportation Authority.
Union Pacific’s $80 million agreement with the VTA involves approximately 15 miles of former Western Pacific right of way and track that stretch from Williams Street in San Jose, Calif., north to Paseo Padre Parkway in Fremont, Calif. The agreement also gives the VTA a one-year option to purchase an additional three miles of track immediately to the south of the 15-mile stretch. The sale of this portion of track will not affect UP’s current or future freight capacity.
Fourth quarter 2002 pre-tax gain from the transaction will total approximately $70 million, adding about $43 million to Union Pacific’s earnings on an after-tax basis or 16 cents per diluted share.
