Lease Renewal Challenged in NE Pennsylvania

A Pennsylvania railroad company is contesting the decision of the Pennsylvania Northeast Regional Railroad Authority to extend the lease of another railroad company without submitting the operation to competitive bidding.

The Authority last week announced that it had renewed for five years the contract of Delaware-Lackawanna Railroad to provide freight service over 90 miles of track to the Northeast Pennsylvania counties of Lackawanna, Wayne, Monroe and Northampton.

Now the Reading, Blue Mountain & Northern wants the authority to reopen the case and enable other railroads to bid on the service.

The Authority had rejected a bid by RBM&N 18 months ago in favor of the contract with Delaware-Lackawanna. That contract expires in late August.

RBM&N has notified the Authority of its intent to continue to challenge extending the Delaware-Lackawanna lease.

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