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NJ TRANSIT AND METRO-NORTH ENTER NEW 7-YEAR AGREEMENT

June 19, 2006
NJT-06-083
Contact: Dan Stessel 973-491-7078

NEWARK, NJ — Under a new seven-year agreement approved today by NJ TRANSIT’s Board of Directors, NJ TRANSIT will continue to provide commuter rail service on behalf of Metro-North Railroad to nearly 5,400 New York State riders each day on the Port Jervis and Pascack Valley lines.

Metro-North and NJ TRANSIT negotiated a new contract to reflect increases in Metro North services and ridership since the time that the previous agreement was reached. In addition, this contract reflects more accurately NJ TRANSIT's current cost structure for operating the service and allows for adjustments when that cost structure changes in the future. The parties also reached agreement on improving train service to the new Ramsey Route 17 Station and adding services on the Port Jervis Line in the future.

“Continuation of this contract enables us to provide integrated, cost-effective commuter rail services for the benefit of both New Jersey and New York State riders,” said Transportation Commissioner and NJ TRANSIT Board Chairman Kris Kolluri.

“For more than 23 years, NJ TRANSIT has operated train service on the Port Jervis and Pascack Valley lines on behalf of Metro-North,” said NJ TRANSIT Executive Director George D. Warrington. “We are pleased to continue an ongoing partnership that benefits both NJ TRANSIT and Metro-North customers alike.”

"This new contract provides an effective financial framework and an efficient business roadmap for both railroads to add and improve service in Rockland and Orange Counties - now and in the future," said Peter A. Cannito, President of MTA Metro-North Railroad. "I am delighted to reconfirm our partnership with NJ TRANSIT as we, together, bring this new contract to our governing boards for approval today."

Since January 1, 1983, NJ TRANSIT has operated service on the Port Jervis and Pascack Valley lines in New York State under contract with Metro-North, receiving reimbursement for operating costs from Metro-North. The most recent agreement between the two agencies covered the period through June 30, 2005.

Today, NJ TRANSIT operates 26 weekday Port Jervis Line trains, 14 Port Jervis Line trains each on Saturday and Sunday, and 23 weekday Pascack Valley Line trains.

As with previous contracts, Metro-North will establish the fares and continue to receive all revenues from Metro-North stations and will continue to be involved in the scheduling of Port Jervis and Pascack Valley Line trains.

NJ TRANSIT is the nation's largest statewide public transportation system providing more than 827,000 weekday trips on 240 bus routes, three light rail lines and 11 commuter rail lines. It is the third largest transit system in the country with 162 rail stations, 55 light rail stations and more than 17,000 bus stops linking major points in New Jersey, New York and Philadelphia.