VRE picks French company to run trains

After more than an hour of debate Friday, the Virginia Railway Express operations board voted to award a five-year operations contract to a French company.

Under the new agreement, Keolis Railroad Services of America will enter into a five-year service contract with the commuter railroad starting July 1, 2010. During the first year, VRE will be charged 18.4 million, which includes a one-time contract start-up fee of $1.7 million.

Over the remaining four years, VRE will be charged $17 million per year.

National railroad provider, Amtrak, held the contract since the commuter railroad began operations in 1992, and has more than 100 employees working at VRE. The new agreement is not expected to impact service.

Keolis, which has never provided railroad services in the U.S. before, will need to assemble a new staff to operate and maintain VRE’s locomotives and railcars.

The company will offer current Amtrak employees who are contracted to work for VRE – many of whom live locally - the option to keep their job without losing seniority, pension plans or accrued holiday and vacation pay, said VRE spokesman Mark Roeber.

“We have a whole host of engineers and conductors who have been with us since we started operation. We don’t foresee those people saying we want to go back into the general pool and saying ‘I want to spend my nights going to Chicago,” said Roeber.

At least 70 percent of contracted VRE employees are expected to remain at the commuter railroad, said Roeber.

While no members of Amtrak management were present at the meeting, the board’s decision came as a blow to Herbert Harris Jr., spokesman for the Brotherhood of Locomotive Engineers and Trainmen. Harris, who works for Amtrak, spoke at length before the board made their decision.

“Your fiduciary responsibilities to your counties and VRE require you evaluate this selection on a criteria that includes operating efficiency and cost-effectiveness. In these difficult economic times, your constituents want to know that their contributions are being well spent and that they will receive quality service,” said Harris.

When Amtrak re-bid for the contract in September, the railroad asked for $19.8 million per year, including a start-up fee of $2.2 million, according to Roeber.

Amtrak would not say why they wanted to impose a contract start-up fee on a contract they have owned for 17-years, said Roeber.

Harris maintained Amtrak has multiple commuter railroad contracts with agencies across the country, but admitted in recent years commuter railroads in Florida, Massachusetts and California have selected other railroad providers to operate their services.

VRE has for more than two years been wrangling with Amtrak over poor scheduling and maintenance issues that Roeber said has plagued the system.

“It’s not a reflection of people who are on our trains, or fixing our trains or operating those trains; those people put their hearts into it everyday.  The problem is when [VRE General Manager Dale Zehner goes to Amtrak] and asks ‘why did my locomotive break down? You just repaired it the other day,’ and get an answer like ‘oh well, it just happens,” said Roeber.

The decision must now be approved by VRE’s parent company, the Potomac and Rappahannock Transportation Commission.

Staff writer Uriah A. Kiser can be reached at 703-878-8065.