(Reuters circulated the following article by Nick Carey on March 28.)
CHICAGO — U.S. railroad Union Pacific Corp. said on Tuesday it has halted an embargo on new business on a section of track serving the coal-rich Powder River Basin in Wyoming.
The embargo went into effect on a section of track Union Pacific operates jointly with railroad Burlington Northern Santa Fe Corp. on July 18, 2005, after heavy rain resulted in two derailments and necessitated an extensive track repair program.
Union Pacific will now accept and seek new business on that section of track, officials said. Burlington Northern Santa Fe has not had an embargo on new business on the line.
Demand for low-sulfur, cheap coal from the Powder River Basin has soared as utilities have sought alternatives to more expensive natural gas.