MARC may get a new operator 

Posted: 7:00 pm Sun, June 13, 2010
By Nicholas Sohr
Daily Record Business Writer

The Maryland Transit Administration is expected to choose a new operator for two MARC commuter rail lines before the end of the year, a move that could make running the service more costly for the state.

The change was prompted by CSX Transportation Inc., which has told state transportation officials it wants out of the commuter rail game.

Transportation Secretary Beverly Swaim-Staley told the Board of Public Works on Wednesday “it’s possible the costs are going up.”

“This was not intended only as a cost savings,” she said. “It would be great if we achieved that, but, quite frankly, CSX is a freight railroad, and in Maryland, as in many other parts of the country, they are trying to get out of the commuter service business. They have been pushing on us for quite a long time and … we agreed that we would move to a third-party operator.”

The board approved Wednesday a $118 million contract with CSX to continue operating two MARC lines, which run from downtown Baltimore, Frederick and Martinsburg, W.V., to Union Station in Washington, for two more years. CSX also has contracts worth another $141 million to allow MARC to access the tracks and stations for five years.

Adding a new company to staff and maintain the trains will not alleviate the scheduling headaches that come with running passenger trains on a freight rail network. CSX will still be responsible for dispatching MARC trains along its tracks.

“We will still be on CSX’s right-of-way, they will still be the dispatch, so there will still be some challenges that will come just by virtue of the fact that we will have two entities on a single right-of-way,” Swaim-Staley said.

Jack Cahalan, a spokesman for the Department of Transportation, said it was too early to determine what, if anything, would happen to ticket prices as part of a shift to a new operator.

The department is reviewing proposals from multiple bidders with an eye toward making a decision this fall. The new operator would take about a year to transition into its role, Cahalan said.

“MTA is evaluating each of those proposals,” Cahalan said. “What’s included in those proposals will certainly have the ultimate bearing on the cost.”

Passenger fares make up less than half of the service’s annual $100 million budget, and the state contributes about $56 million to make up the difference. MARC carries about 33,000 passengers daily.

Cahalan, citing state procurement laws, would not reveal which companies’ bids the department is still reviewing.

But, a Keolis Rail Services America executive confirmed the company was one of the finalists for the MARC contract.

Keolis, a Rockville-based subsidiary of the French national railroad, is scheduled to take over the operation of commuter lines in Northern Virginia in mid-July.

“We have certainly made a proposal for the MARC system,” said Steve Townsend, a Keolis executive vice president.

Townsend said the MTA and state transportation department are reviewing the company’s “best and final offer.”

In Virginia, Keolis beat out Bombardier Transportation of Germany and Amtrak, which previously held the contract and operates the third MARC line between Union Station and Perryville.

When contacted about the MARC contract, Bombardier spokeswoman Maryanne Roberts said the company does not “comment on pending procurements.”

An Amtrak spokeswoman also declined to comment.