Feds side with CORP on railroad price

By Alexander Rich, Staff Writer
Thursday, November 20, 2008 | 18 comment(s)

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The U.S. Surface Transportation Board set the price for the Coos Bay rail line Wednesday at $16.6 million. The Oregon International Port of Coos Bay now has until Dec. 1 to decide whether to accept the STB’s price and terms of sale.

The STB approved the port’s application to purchase the line Oct. 31.

It devised the methodology for coming up with a price, then asked the port and Central Oregon & Pacific Railroad to offer scrap metal prices.

The railroad company suggested an appropriate price would be $16.6 million. The port previously suggested something closer to $7 million to $9 million.

The port’s commission agreed to pay up to $16 million for the line at its last meeting.

Martin Callery, the port’s director of communications and freight mobility, said it was possible the issue would come up at tonight’s meeting, though it wasn’t a certainty. The commission will need to direct staff on how to proceed.

“We are going to have to discuss it and see what options we have,” Callery said.

If the port decides not to purchase the 111-mile rail line, CORP will be allowed to abandon it.

Rep. Peter DeFazio, D-Ore., requested an extension for the port to make a decision, but the STB denied it.
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Hello wrote on Nov 27, 2008 9:29 AM:

Don't they know we're in a recession, headed for a depression for the next 2 years, at least? Act and think like it!

Cora wrote on Nov 26, 2008 3:15 PM:

To Indisgust, the barges starting going to Portland before the railroad went down. My husband helps load the ships and we are doing about one barge every 2 months. Maybe the longshoreman could shed some light. And to think in 1969 the billboard read, "Welcome to Coos Bay the largest lumber shipping port in the World." Now it should read, "Welcome to Coos Bay the town of retired people and their fast food eateries".

Gene wrote on Nov 26, 2008 12:19 PM:

Hey, IN DISGUST, who do you think was behind the vote to get The Port of Coos Bay under the State control? Do you really think The Port of Portland and Longview are going to let Coos Bay take their cargo? Any attempt to move containers cars on the 111 miles of track would require in excess of $150 million to accomplish. Even the Port people know this. The real reason to acquire the rail line is to benefit a few small companies who are run, and profited for, by people who don't even reside in this area. It is our area. Get rid of the rails and have some high value land on the waterfront in both Coos Bay and North Bend. The Port wouldn't control it and couldn't make demands to either city for crossing or going under the rails like CORP did. The Port of Coos Bay, except for some land on the North Spit, is just the RV park and docks in Charleston. All this hype is about money for their outrageous salaries. They need to be sent packing to some other Port in Oregon. Preferably The Dalles or somewhere in that area.

IN DISGUST wrote on Nov 23, 2008 3:44 PM:

Well. seems to me that all the closed minded have once again found something to whine about and taint. What I suggest is to support the rail-line, support the ships that wouldnt have to travel an extra 300 sea miles to reach Portland (saving money for them and stripping some from the city whose agenda runs the state and thus returning revenue and vitality to the Central Oregon Coast), support what is left of our docking area that was not given to a minority group because we feel sorry for them. Our communities need help and the rail line is the biggest shot in the arm our commerce can receive. It will not be instant, we all know that. But it is a better idea than the flop the LNG line turned into. Quit thinking with the retiring mindset. This area will be here far long into the future and we need to get on track. We are a poor area because we keep it poor. But, lets shut out the waters too and make the whole coast a reserve so that only Portland can receive ships!!!!!!!!!!

Linda wrote on Nov 21, 2008 10:31 AM:

Well if we all go to the Casino and loose the rest of the money we have and give them our houses too, they could put some of their employees back to work. They are the biggest tourist attraction we have.

Gerry wrote on Nov 21, 2008 12:04 AM:

I can't even imagine some of you would think the purchase of this rail line would be a mistake. What else does CB/NB have going for it except this deep water port and a rail line. It's no wonder the leaders of this community would want to give up in disgust when everything they do trying to jobs gets met with a bunch of whiney people wringing their hands because it isn't given to them free. It's no wonder large companys don't come into this community because there is NO support from the people who live here. Get your selves togeather and realize what resources you have and WORK for a better future for your community instead of whining that it could cost you a little money to get it going. Support the leaders who are trying to help you instead of suspecting every one is out to get you.

taxpayer wrote on Nov 20, 2008 7:20 PM:

Are the taxpayers that don't have jobs supposed to pay for this railroad the port wants to buy ? ? How can this PORT keep buying things with taxpayer money that never SEEM TO WORK OUT. Every since I can remember, the port and Coos Bay have been buying things that never made any money, never got tourists to stop in town, and NEVER MADE SENSE. And they keep doing it.
Even things like putting in a Mall, taking out a Mall, putting up awnings, taking down awnings, putting in one way streets, taking out one way streets. they just keep finding ways to spend money that keeps the taxpayers spending more money and does absolutely nothing for the area. I just wish someone that really knew what they were doing would run this area, and Port and Coos Bay... and could actually produce something like jobs, or tourist attractions, and something to make more people want to live here, and bring their money here to spend.

beebsie wrote on Nov 20, 2008 6:31 PM:

Coos Bay consistently pours money into projects that initially sound like a great deal, but turn out to be no more than a continual request for MO' MONEY from the taxpayers. We have an airport but few planes and, most recently a decrepit theater that needs tons of work to bring it up to Code. If the Port buys the RR it'll be just another mouth to feed. Let's move in the 21st century.

resident wrote on Nov 20, 2008 6:12 PM:

I wonder what the price of scrap was for $16.6 million number? The price of scrap has collapsed very recently. Somebody should run the numbers again.

GETRIDOFRAILROAD wrote on Nov 20, 2008 5:50 PM:

Anybody who advocates the port acquiring this railroad has not thought it through. CORP never made any money, and in most years lost money due to the small number of carloads. I see no way the port can do better, and they probably will do worse. Then they're talking about borrowing $60 mil to "upgrade" the railroad. If they make no money, they'll never be able to repay it. It's a lost cause.

Linda wrote on Nov 20, 2008 3:59 PM:

To worried timberworkers wife. You need to turn your porchlight on, because there hasn't been a timber industry since the cows came home. You must be young.

lets wait wrote on Nov 20, 2008 3:28 PM:

until all of the fish and all of the trees come back. Yeah, that's gonna happen. Look past the fish and the trees, people, they're not coming back. at least not in the manner that industry, over the past 100 years, has been used to.

TheBIgPicture wrote on Nov 20, 2008 2:21 PM:

YOu need to think FORWARD..without a rail line you will NEVER have any commerce or be able to develop any type of industry, the timber ind. is gone/dead, with a working port and working rail line it will only be a matter of time before "some type" of industry sees the value in the area, that is IF you don't chase them out with your attitudes.....

Gene wrote on Nov 20, 2008 1:44 PM:

The Port doesn't care that there isn't anything to ship. It just makes their little empire bigger. The $16 million is only the start. Once they have it they will have to start tying to get another $100 million to make it usable for containers that aren't even going to be coming here. The present board and management of The Port of Coos Bay should all be replaced by people who can concentrate on what we really have here in Coos Bay and Charleston, a small fishing village that is also dying on it's feet along with the lumber industry. A lot of people are being taken in with the hope for jobs and that just isn't going to happen.

worried timberworker wife wrote on Nov 20, 2008 1:06 PM:

I dont think people are seeing the big picture with the railroad.. there is no wood in the mills to be shipped out by the railroad ;because the market is so bad there is no need for wood because there are no house being built ,The city needs to think it over its not looking good for the timber industries around here.

Cindy wrote on Nov 20, 2008 12:58 PM:

Are railroad cars and engines included? I sure have enjoyed being able to see the waterfront on my drive to work for the past year. I want the economic support for our business community, but I wouldn't mind keeping the view open. Is there another place to park all the empty waiting railcars? And will the port as an operator be paying extra costs to lease equipment too?

This is an asset this community needs.

Ken Av. wrote on Nov 20, 2008 11:46 AM:

I still do not understand how on the one hand STB agrees with CORP that the value is 16 million, but if not "bought" then CORP can proceed with abandoning the line. What then will an "abandoned" line be worth? Is it still 16 million???? Come on, quit giving bit amoral corporations monies from the public trough. That goes for the Roseburg area Winchester grant, too.

DeFazio, Help!!!

Steve Pickering wrote on Nov 20, 2008 10:48 AM:

I have to go to Portland today and can't make the meeting, but I ask the Port to Vote YES and buy the railroad. Then get on with finding a professional to run it.

To those who say no ... If this railroad is lost, any, ANY, future growth is dead. There is no other player in the game. As distasteful as this is, it is a must do.

If you attended the meetings you would have seen a very professional presentation, well thought out in how the Port will pull this off with the least pain to local taxpayers.

Go to the meetings.


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