How to run a railroad?

By Alexander Rich, Staff Writer
Monday, August 11, 2008 | 22 comment(s)

Before acquiring CB line, port can study others’ experiences

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The Oregon International Port of Coos Bay may soon find itself with a 111-mile railroad. The problem is the port has no experience running one.

It has filed a feeder line application to purchase the Coos Bay tracks from Central Oregon & Pacific Railroad, though port staff still are figuring out how it would be operated.

They could partner with a private company that would operate the line. They could contract out engineering and maintenance services. Or, the port could hire staff to run the line internally.

Should federal officials give their blessing, the Port of Coos Bay would not be the first public agency in Oregon to own railroad tracks. The Port of Tillamook Bay owns a 95-mile line that stretches from the coast to the Portland suburbs. Wallowa and Union counties acquired a 63-mile branch in the northeast portion of the state about six years ago.

Then there is a coalition of four Northern California counties that owns a line from Eureka to just north of San Francisco Bay.

All three want to maintain rail service in rural areas, though each took a different route to get there. One augmented its staff with railroad experts to manage the line. Another contracted with a private company to operate a passenger train. And the third tried a number of different formulas, so far with little success.

These agencies’ experiences might offer the Port of Coos Bay lessons in how it is possible for a government agency to manage — or mismanage — a rail line.

A lesson from Tillamook

The Coos Bay rail line wasn’t the only coastal corridor that abruptly closed in the fall of 2007. The 95-mile track from Tillamook to Schefflin was embargoed in December. A railroad corporation didn’t close it, since the Port of Tillamook Bay has owned it since 1990. Rather, the devastating December storms that hammered the North Coast caused significant damage. One tunnel in the Salmonberry Canyon area filled with more than 3,000 cubic yards of debris, said Michele Bradley, interim general manager of the Port of Tillamook Bay. Engineers are inspecting the rail line and should have an estimate on the cost of repairs by September, she said.

Who pays for the repairs is an open question that dates back to the acquisition of the line from Southern Pacific.

In 1990, the state approved the use of lottery funds to purchase the line for a little less than $3 million. Ken Bell, a port commissioner for the past 23 years, said the funds came from video poker receipts.

“It was all in the timing,” he said.

The state kept ownership of the right-of-way, and then gave the track and other improvements to the port.

The port decided to hire staff to operate the railroad. Slowly but surely, it saw an increase in traffic, from 70 cars a month to about 400 as recently as 2006.

Bell credits the port’s acquisition of the line with attracting several buyers who opened businesses in the area shortly thereafter.

“We wouldn’t have had those mills without the port taking over the line,” he said.

There was a slight dip in the number of traincars in 2007, even before the line was shut down in December. Whether the port can afford to make the needed repairs and continue in a declining market for timber products is uncertain.

Bradley said the Federal Emergency Management Agency will pay for 75 percent of any necessary repairs. The railroad’s fate now rests in part with the state and whether it will pay the other 25 percent.

(Staff Writer Alexander Rich covers the Port of Coos Bay for The World. He can be reached by calling 269-1222, ext. 234; or by e-mailing to arich@theworldlink.com.)
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Resident wrote on Aug 18, 2008 6:32 PM:

To I Love Coos Bay--
Talking is one thing, but if what you mean by lending a hand is increased taxes--forget it.

TOM wrote on Aug 18, 2008 1:48 PM:

TO THE PORT OF COOS BAY: Why should the people trust you in running a railroad when you don't even know how to use a port. The Port of Coos Bay is one of the deepest and largest shipping ports on the west coast and so far all I have seen you do with it is NOTHING. It is a shame to drive by the bay and see that Port empty. At one time there was a huge sign saying"Worlds Largest Lumber Shipping Port In The World". The spotted owl ediots got that, but you should be able to unitilize the port in some way other that sitting there growing weeds.

Forum Seems to Work wrote on Aug 18, 2008 7:32 AM:

FRED wrote on Aug 11, 2008 5:47 PM:
Fred number three here. Some Freds are brain dead. This Fred reads the opinions of my neighbors but stopped commenting because some jerk started using my first and last name in his comments. I'm flattered that he feared me so much. One could lose their sanity trying to figure out the important issues of the area when anybody can use any name - including mine - and they do and say anything. It's time for the World to assign a single screen name and password to commenters. The big boy newspapers do that.

You will have to use The World Forum if you would like to protect your identity and have more civilized discussions.

I LOVE COOS BAY wrote on Aug 17, 2008 1:44 PM:

I am an educated individual that is hoping that all the negativity can be put aside and everyone figure this out together for the greater good of our area. I know there are a lot of people supposing what the port's intentions are for the railroad however there are just as many who don't want to see any change for the better at all. Communication is key folks, lets all get along together and lend a helping hand with some positive suggestions.

Citizen wrote on Aug 14, 2008 9:44 PM:

Perhaps if we don't need the railroad then we should just drop this. Tourism and minimum wage jobs should create a great environment for illegal drug sales. How's that for a negative comment.

Mike L wrote on Aug 12, 2008 3:25 AM:

The Port needs to add passenger cars and/or another train that would service Coos, Reeds, Flo, Mapleton, Noti and into Eugene. There isn't any alternative transportation if your car 'dies', your physical condition prevents you from driving or you can't afford the gas. I believe many would take the train just for the ride & an alternative view of inaccssible areas. JMO!

fred wrote on Aug 11, 2008 5:47 PM:

Fred number three here. Some Freds are brain dead. This Fred reads the opinions of my neighbors but stopped commenting because some jerk started using my first and last name in his comments. I'm flattered that he feared me so much. One could lose their sanity trying to figure out the important issues of the area when anybody can use any name - including mine - and they do and say anything. It's time for the World to assign a single screen name and password to commenters. The big boy newspapers do that.

Resident wrote on Aug 11, 2008 5:35 PM:

To the Public Has Had Enough--you are right! How positive did the Colonists seem to the Loyalists?

Public has had ENOUGH wrote on Aug 11, 2008 9:27 AM:

June says, "Why is almost everyone who posts on any of these forums so negative? Negative energy only begets negative energy."

June you are hearing from THE PEOPLE...a tired angry group that has seen their local elected and non-elected (Port) officials refuse to listen to them. Government bodies that "barely" notify the public of meetings for public input and then announce "deals" that are "done." All the while, asking citizens to support one boondoggle scheme after another designed to benefit a few at the expense of the good people of Oregon and the Bay Area. It's called PUBLIC OUTCRY.... and people have had enough!

Resident wrote on Aug 11, 2008 9:20 AM:

Don't miss the comment written by the railroad man on the Northern California line.

Jeese wrote on Aug 11, 2008 9:06 AM:

June, June, June, then you just tell us some positives, OK ??????????

Some people can't take the truth with out sugarcoating everything.

Fred wrote on Aug 11, 2008 7:36 AM:

Not all Freds are created equal. The other Fred is only worried about LNG and this one is worried about the 700 folks working at the mills in town that need rail service. That is the way it is the anti-LNG extremists they see nothing but LNG. Doesn't matter to them what they have to do to stop it in their Jihad. In Jihad all infidels are fair game, that includes you workers at the mills.

June wrote on Aug 10, 2008 7:06 PM:

I thought I read that the shippers who used the RR have paid millions in additional shipping costs since it closed the line. Perhaps they would be willing to chip in a substantial amount since their shipping costs aren't going to go down if they have to continue to truck goods. Had they pooled their money to fix it in the first place, they probably wouldn't have been any worse off than they are now.

Why is almost everyone who posts on any of these forums so negative? Negative energy only begets negative energy.

fred wrote on Aug 10, 2008 2:53 PM:

Everybody knows that the LNG man needs a railroad to move his highly flammable byproducts through Lakeside, Reedsport and Eugene. Let's be honest with the people. This is not a Field of Dreams - build it and they will come. Mr. Port man, what do you have in hand that says anybody will come if the people of Oregon buy a railroad?

taxpayer wrote on Aug 10, 2008 10:36 AM:

Where does the Port think they are going to get all the money to pay for this railroad??? We cannot afford more taxes and the Port doesn't even know how to run the railroad if they get it. I guess the Port thinks that we will pay for it and if it doesn't work out, "oh well" its just the "little peoples" money, so what. I am tired of this Ports thinking like that, are you.??

Citizen wrote on Aug 9, 2008 6:51 PM:

Has anymore attention been given to "day lighting" the tunnels instead of repairing them? The tunnel repair costs were the bulk of the cost to maintain the line to the coast. Before we start dumping our (Your money and mine) into this lets be smarter! Has anyone asked the folks who worked on the line what could be done?

Common Sense wrote on Aug 9, 2008 5:01 PM:

The Port Commissioners of Coos Bay can't even run things now without purchasing this rail line (Keep raising fees to fishermen & others)!

Prediction = After 1st day of ownership the Port will have their hand out for more taxpayer's $$$ & it will continue begging until it finally realizes it was a failed pie in the sky fantasy & then go on to the next scheme (SCAM) to parasite off tax payer's hard earned $$$ again!

Thomas wrote on Aug 9, 2008 4:58 PM:

Clearly Capitalism has failed us, but is what the Coos poohbahs propose Socialism or Fascism .......... makes a difference?

BRAD wrote on Aug 9, 2008 4:06 PM:

The main difference between Coos Bay and the other rails mentioned is that we have a deep port potential. Without rail service, container shipping is a pipe dream. With rail service, a real possibility.

Dick in North Bend wrote on Aug 9, 2008 4:00 PM:

Well it looks like the Port Commission is going to do it again. They did not learn with the Crossline, so now they are going to run a rail road. Interesting indeed.

Donald P. wrote on Aug 9, 2008 11:53 AM:

Incomplete research here? Lesson from Tillamook, then what about the other two lessons??

Perhaps a more thoroughly researched article with some better writing skills will help this important subject to be better understood by the public. Keep at it, Alex. This is a nice beginning.

Just Curious wrote on Aug 9, 2008 10:11 AM:

Why was the public not informed that there is an Aug 21st public hearing on this and the deadline to submit a letter to the Surface Transportation Board to participate is Monday, Aug 11th?

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