CHESTERTON — South Shore commuters will face a fare increase next year to help offset operating costs.
General manager Michael Noland said Friday the increase did not represent a “me too” fare hike, referring to the 10.8 percent fare increase approved by the Metra board in Chicago on Friday.
Noland told the Northern Indiana Commuter Transportation District board that he will offer recommendations in March that will be followed by public hearings in all four northern Indiana counties served by the South Shore rail line.
The NICTD board would vote in May and the new rates would be effective July 1, he said. No fare increase estimates were presented Friday.
“We’ll have to sit down with staff,” Noland said.
NICTD hasn’t had a fare increase since 2012 when riders absorbed a 5 percent increase.
“We’re looking at an across-the-board fare increase,” Noland said. “We know we need to increase our revenue to keep pace with operating costs.”
Noland, a former high-ranking Metra official, said the fare increase is needed to help cover deferred maintenance costs as well as to keep up with operating costs.
NICTD also must finance the federally mandated positive train control system designed to prevent train-to-train collisions and enforce train speeds. Congress passed the Railway Safety Act in 2008 and gave agencies until 2015 to implement it. The NICTD board approved a resolution that asks for an extension on the December 2015 deadline. The estimated capital cost for the initiative is $43 million with all the funding coming from local or state sources.
“How you say in 2008 that we shall do this in 2015 is a travesty,” NICTD board member and Lake County Commissioner Mike Repay said.
In other business, NICTD is considering purchasing 17.5 acres on the north side of U.S. 12 in The Pines for use as a rail yard. The land was formerly an industrial materials supply site.
NICTD operates a yard in Michigan City where storage is at capacity. Noland said NICTD could use additional space for staging and for more flexibility.
“It’s a unique parcel and well-situated for this construction,” Noland said.
The board approved a resolution to begin acquiring the property, through eminent domain, if necessary.