The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, August 25, 1994              TAG: 9408250609
SECTION: LOCAL                    PAGE: B4   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WOODBRIDGE                         LENGTH: Medium:   55 lines

COMMUTER RAIL COSTS, SERVICES MAY INCREASE

The Virginia Railway Express is proposing to pay $3.45 million to two railroad companies that own tracks used for its commuter line - more than twice the current amount.

The increased costs would go toward expansion of VRE service. But it remains unclear how many more daily runs will be added.

The commuter rail service, which runs from Fredericksburg and Manassas to Washington, is trying to reach agreements with CSX Transportation and Norfolk Southern Corp.

The current two-year agreement runs out at the end of the year.

Stephen T. Roberts, VRE operations director, said the increase was contained in the VRE's proposed budget released this week.

Randy Evans, a vice president for CSX Transportation, said Wednesday he remains optimistic about reaching a deal with the VRE.

A major sticking point is how expanded commuter service will affect freight schedules.

``This capacity issue has been number one on the agenda,'' Evans said.

``We have said that we've got to have some movement on the price as well.''

Under the current two-year agreement, CSX is paid $1.1 million and Norfolk Southern receives about $530,000, for a total of more than $1.6 million.

Also part of the impasse is discussion of a third set of tracks from Richmond to Washington. CSX supports another track but VRE officials have said there is plenty of capacity on the existing lines with less costly improvements.

The VRE had hoped to double the number of rush-hour trains from eight to 16 and add midday service. That has been put on hold because CSX and Norfolk Southern are using the tracks at those times for freight.

The VRE's 1995-96 budget calls for one additional morning and evening rush-hour train on each line. Riders could get some additional service, however, if the VRE could strike a deal with Amtrak to allow commuters to use more of its through passenger trains, Roberts said.

The preliminary budget also shows that fares could rise next July by an average of 4 percent. A round-trip ticket to Washington currently costs $12.30 from Fredericksburg. Multiple-ride tickets cost less.

Ridership is growing but still has not reached the 4,500 daily passengers that rail operators predicted when the service began two years ago.

Rising costs for commuter rail have strained relations among local governments that support the VRE through a 2 percent gas tax.

KEYWORDS: VIRGINIA RAILWAY EXPRESS

by CNB