Despite the long-awaited federal approval this week for the acquisition of a central coast rail line, the entire deal could be in jeopardy. Santa cruz county has been trying for more than a decade to take ownership of the historic, 32-mile “branch rail line.” consent was given this week from federal transportation officials. However, sierra northern railway, which had agreed to continue operating the rail as a freight line, is now considering an abrupt withdrawal. That’s because the company is in a dispute with union pacific, to take control of a rail line west of sacramento. sierra northern officials say that if union pacific backs out of that deal, then the santa cruz deal would not be economically feasible. The company has until the end of the year to make a decision. The operation of the freight service was a key part of the plan to run a passenger train along the line, from Watsonville to davenport.
