It's our railroad now

By Alexander Rich, Staff Writer
Friday, March 13, 2009 | 47 comment(s)

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COOS BAY - The Coos Bay rail line officially changes hands and its name today. The new owner, which renamed the line Coos Bay Rail Link, now has to change gears. After spending the past year seeking ownership of the 111-mile railroad, the Oregon International Port of Coos Bay needs to find the funds to fix it.

The port already has several applications for federal stimulus funding pending. It should learn next Wednesday whether it gets any of the $68 million to $100 million getting divvied out by the Oregon Transportation Commission.

It is seeking as much as $33 million, though officials said the line could return to operation with only a third of that amount.

It's getting the money that will determine how quickly trains return to Coos Bay. Executive Director Jeffrey Bishop said he expects repairs would take nine to 18 months to complete. The earliest construction can begin is June, leaving next spring as the earliest the rail embargo could be lifted.

There was little debate among port commissioners before they unanimously approved the contract Thursday to purchase the line from Central Oregon & Pacific Railroad for almost $16.6 million. The funds come from a $12.6 million loan from the state as well as a $4 million ODOT grant. Part of the loan will be paid back with funds from an $8 million federal appropriation originally intended to repair the Coos Bay swing bridge.

An omnibus bill President Obama signed on Wednesday allows the port to use the funds to purchase the line.

The port had petitioned the U.S. Surface Transportation Board to reduce the asking price, but the federal agency denied it.

In his presentation to the commission, Bishop said the rail line would probably have an operating loss for at least the next five years. The shippers have agreed to pay a surcharge to compensate the port for the forecasted shortfall, he said.

Commissioner Brady Scott asked whether the port risked losing money if shippers didn't use the line. Bishop said that shouldn't be a concern because the port's expenses would only add up if it's operating engines.

"If you aren't shipping on it, you are not incurring a loss," he said.

Chairman David Kronsteiner said ensuring the line remained available on the South Coast was difficult, between the bureaucratic barriers and legal positioning. But in the end it was worth the challenge.

"It's good we can keep the line because without it, I think we would ... Let's just say we would not have to meet so often," he said.
The details


What: Executive Director Jeffrey Bishop said it will take between nine and 18 months to complete repairs on the Coos Bay Rail Link, depending upon how quickly the port gets money. The earliest construction can begin is June, so railcars could return to Coos Bay as soon as next spring.


Paying to run it: The Port of Coos Bay has reached a tentative agreement with shippers to pay for any losses from railroad operations. The port will impose an undisclosed railcar surcharge to be collected in an escrow account. Bishop said the shippers consider the surcharge proprietary - not public - information, and would not disclose the amount included in the draft agreement.


At the end of the fiscal year, any operating losses would be covered by the fund. Any funds left in the account, would be sent back to the shippers.
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Fred wrote on Mar 19, 2009 12:12 PM:

A weekend excursion train from the valley might have some merit, but regular passenger service, no way! Passenger service requires well maintained tracks so that the train can travel at reasonably high speed. I seriously doubt that the current track conditions support speeds of more than 30 or 40 mph.

Gene wrote on Mar 19, 2009 11:44 AM:

Any good search on railroad building costs would soon result in dollar amounts of $150 million or more to make this "rail line" container usable. The people of the Port are only interested in filling their own pockets with outrageous salaries for what they are worth to the community. We don't even need these people for our little fishing port with a handful of docks. If we had a Governor with any backbone, he would disband the whole thing and give it back to the locals. To make it worse, now the Transportation Commission has jeopardized the stimulus money for Oregon by giving some to these clowns.

Passenger rail line maybe and Industrial rail line NO wrote on Mar 19, 2009 6:57 AM:

Only chance this rail line has to be successful is if it's a passenger rail line & that's a slim chance at best! On the other hand, making it an industrial rail line it's nothing more then a black hole sucking USA Tax payers money to never never land, because there's NOT enough business for it to function at it's every day operations cost & proving it was CORP quitting in the first place!
P.S. These Port commissioners are worth the money they are paid....NOTHING!

Richard wrote on Mar 18, 2009 10:05 PM:

This is a difficult issue. The idea of a railroad is a good one but the process by which this Port operates works only with major taxpayer subsidies. The Port is sucking all the State and Federal money Coos County is going to get for a long time into a sack with no bottom. $100 million is just a start. We will be throwing good money after bad but Bishop and the rest of the flunkies will still get full pay and bennies no matter haw poor a job they do. Who will fix it? Someone will.

Jethro wrote on Mar 18, 2009 6:31 PM:

I agree with Jerry. Had this idea of a transit connection between Coos Bay and Eugene been open, I know that I personally would have used it 4 or 5 times a month at least. Now I reside elsewhere and use rail transit every other day for intrastate trips.

Jerry wrote on Mar 18, 2009 3:01 PM:

The citizens of the County could get real value from this transaction if the County would provide for passenger rail service on this line...possibly connecting to Eugene and the Amtrack system. The County of Coos has virtually no mass-transit capabliity connecting to the I-5 corridor.

supportive wrote on Mar 18, 2009 2:05 PM:

We are grateful to have these generous, well-educated people on the Port Commission. It's a stressful, time-consuming, unpaid job for them, and this in addition to their day jobs. We know they're doing everything they can to build our infrastructure to create stable, family wage jobs to reduce the poverty that dooms so many of our children to a grim future. Well done, Jeff Bishop and your commissioners!

ChuckO wrote on Mar 17, 2009 11:53 AM:

Apparently none of you is as old as me. There was a scenic railroad day trip to Coos Bay from Eugene 50 years ago. It was slow, truly a day trip. It was replaced by Greyhound and other buses. Then the buses went away.

George wrote on Mar 17, 2009 6:57 AM:

Do those advocating this decrepit railroad carry passengers consider its many long, dangerous and unventilated tunnels?

It is doubtful that any would remain on board our train after mercifully exiting the first one.

Jo shixpack wrote on Mar 16, 2009 9:54 PM:

This will be an endless money pit but watch the ignorant and uneducated come out and praise it. That's all I can think of. blllrrbbb, blllrrrbbb...

Jethro wrote on Mar 16, 2009 7:06 PM:

Instead of griping about the purchase, what can we do with it while we have it?

I see plenty of working rail cars around... TOURISM! Oregon is beautiful, and the rail line goes through some breathtaking country. Want a Tourist draw? Advertise a Romantic Railway Weekend. Dio that alongside commercial rail. Now, just as long as you don't have a methhead at the switches, it should all work.

Hanover wrote on Mar 16, 2009 5:15 PM:

I have always hoped that the locals who wanted better things for there familys and cummunity would some how prevail and get back to a busy and money making area.Like it used to be.I was wrong here we go agian with another magical idea to grow yet another big brother empire. more government is not the answer.Sadly it is to late for the tax payer. The miles of repair and up keep the bill should be a good one.This county can't even afford to fix it's roads.A private company says it's not worth it anymore.So the port waves it's magic wand and it becomes a money maker.Good luck it must be a faith thing just beleive in big brother.

survivor wrote on Mar 16, 2009 10:41 AM:

If the public could see how much the appointed board spends on travel and entertainment you would be blown away. We are financing the biggest abuse of a public board so they can be further their exotic travels. Why does the board travel all over the worldon our tax dollars. The board has been bought and paid for on the backs of the taxpayer and the poor fisherman. taxpayer is getting hosed and has little recouse.

Dear Mr. Bishop wrote on Mar 16, 2009 9:46 AM:

If we add YOUR numbers, we get close to $100 million to buy the rail line, repair the rail line, bridges and tunnels, to buy rail equipment (locomotives, cars, etc) or to subsidize a rail company to come here to run your exagerated Lionel rail company. All so the port doesnt have to pay the mill $4 million and you can get your desired LNG on the North Spit. Stop being afraid of us. TELL US TAXPAYERS WHO PAY YOUR SALARY, WHAT IS THE NUMBER?

Thomas wrote on Mar 16, 2009 9:06 AM:

Other than fishing, the inconveniently located Port of Coos Bay is only necessary today for exporting our unprocessed resourses, importing raw materials for use by other places, or possibly taking in the stuff that no other port will. None of these can create much if any real community wealth.

Therefore, a railroad to such a port at this time has very little chance of ever being profitable, and inevitably will become just a blackhole for consuming public dollars to keep running. This area has to wake up and stop being delusional about what it is not, and start focusing on the uniquely great place it is and what that can really become.

Common Sense wrote on Mar 16, 2009 7:17 AM:

Question(s) for Jeff Bishop:

If this rail line wasn't supported by the USA Tax payer would you have considered buying it? If your answer is yes, explain how the Port could come up with the necessary MILLIONS of $$$ to buy & maintain it without USA Tax payers bailing this rail line out now?

P.S. No answer to these questions is an answer WE already know, since you are obviously reading these comments!

Mr choo choo wrote on Mar 15, 2009 5:13 PM:

Well the port of Punta Colonet Mexico is dead from what I can tell from my last trip down there. I have spent alot of time in baja and the only railroad goes from tecate,MX to TJ,MX. There is no up railline that runs down from there. And the port of LA and long beach are full. I worked there for many years. The only way they could expand is to bring in fill to build and island called pier 400(maersk shipping). Very expensive to build compared to the 16 mil your port payed for the rail link. The tracks that the port of la and long beach purchased back from the railroads was around the port not to and from. The corridor came second. Get on board cause it aint going anywhere, bought and payed for.

Kari wrote on Mar 15, 2009 12:22 PM:

Jeff Bishop wrote on Mar 14, 2009 1:37 PM:
My comment about not incurring a loss if the train does not run was in response to a question regarding operations. The answer was given to a question specifically regarding operational costs. It was not an answer given to describe affects on future value by a lack of use. I apologize for the too simplistic response. We are truly grateful for the support our partners have given us and I always take my fiduciary responsibilities toward taxpayer funds serious. I have performed considerable time value of money analysis on this acquisition and have developed a responsible risk model. This venture is not without risk but the alternative was worse in the opinion of those who have invested in it. Again, I apologize for lack of clarity in my response.

APOLOGIZE? MUST OF TAKEN YOU YEARS TO LEARN HOW TO SPEAK SO AS TO MAKE NO SENSE WHATSOEVER.

IF YOU HAD ANY MR. BISHOP, I'D SAY SHAME ON YOU. BUT THEN YOU JUST GUARANTEED A PAYCHECK FOR YOU AND YER GANG, RIGHT? THAT'S ALL I'VE EVER SEEN COME OUT YOUR DOOR.

Circus Train wrote on Mar 15, 2009 10:55 AM:

The port officials can ride in the clown car.

Sure Jeff wrote on Mar 14, 2009 9:15 PM:

You have a model that is destined to succeed. It will succeed to put big money in your pockets with no benefit to the local people. This could not be a bigger conflict of interest. And to rub salt WCC runs phony 55K a year ads for a shop manager. Look at me I give jobs. What a joke.

John wrote on Mar 14, 2009 5:15 PM:

Trains are MUCH safer than the trucks and better for the enviroment,can ship up to 300 trailers and containers on a typical train.

MR CHOO CHOO wrote on Mar 14, 2009 3:05 PM:

From your description we know who you are. When do you start working for the port? You are behind the times. The southern California ports are not full. The rail lne is new and is a recessed many track wide straight as an arrow corridor through the Los Angeles basin. Try that to Eugene. APM terminals is building a new west coast terminal in BC. There will be another huge west coast port in Punta Colonet Mexico where there is already a UP rail line. There will never be a container terminal here and it's time for the port commission to fess up. They need the rail line to help their pal Braddock at the taxpayers expense. The head port commissioners company should be prohibited from bidding as a contractor for any rail line or tunnel work. OK as a subcontractor.

Jeff Bishop wrote on Mar 14, 2009 1:37 PM:

My comment about not incurring a loss if the train does not run was in response to a question regarding operations. The answer was given to a question specifically regarding operational costs. It was not an answer given to describe affects on future value by a lack of use. I apologize for the too simplistic response. We are truly grateful for the support our partners have given us and I always take my fiduciary responsibilities toward taxpayer funds serious. I have performed considerable time value of money analysis on this acquisition and have developed a responsible risk model. This venture is not without risk but the alternative was worse in the opinion of those who have invested in it. Again, I apologize for lack of clarity in my response.

John wrote on Mar 14, 2009 1:02 PM:

Trains are MUCH safer than the trucks and better for the enviroment,can ship up to 300 trailers and containers on a typical train.Imagine if Coosbay had a domestic/international piggyback terminal.That would put Coos Bay on the national map in rail services as intermodal service as a option.

John wrote on Mar 14, 2009 1:00 PM:

Trains are MUCH safer than the trucks and better for the enviroment,can ship up to 300 trailers and containers on a typical train.Imagine if Coosbay had a domestic/international piggyback terminal.That would put Coos Bay on the national map in rail services as intermodal service as a option.
The port does need to expand because Seattle-Tacoma,Oakland and LA ports are WAY TOO overcrowded.It does cost money to bring industry in and they aren't doing it very well,could have had Nucor steel mill in North Bend,they didn't want it.

Holly wrote on Mar 14, 2009 10:44 AM:

I know! We could call it the EARMARK EXPRESS!

GREAT wrote on Mar 14, 2009 10:35 AM:

I agree with Caroline Mitchell. Okay so now we have it.Make it something we all can use. What a great idea scenic tours.
I am a fifth generation from CB and never been on the rails to Eugene. What fun.

choo choo wrote on Mar 14, 2009 10:04 AM:

I can't believe people in this community. This is a gooooooood thing people. Let me tell you about rail america or "fail america" as it is known in the railroad industry. I'v worked for them many times and if they can't make a line run with huge profits they shut it down and sell it for scrap. And I mean huge profits, profits other smaller railroads would love to have. They do not care about the community or the industries they serve and are the worst thing for the railroad industry. Thank the people at the port for saving this line. The port of LA and long beach are full. Over flow traffic WILL have to find other ports in which to off/load there products. If you look at what the ports of LA and long beach did over ten years ago you will see that they purchased most of the railline that run in the ports. At the time it was a "huge mistake" in the eyes of the people of la county, but the people at the port proved them wrong. Trust the people at your port there only doing what good for coos bay!!!!!

Citizen wrote on Mar 14, 2009 7:46 AM:

The rail road could mean a lot of things for this area. Day lighting the tunnels would allow container to be transported into the I-5 corridor after they are off-loaded from ship in our harbor. Giving a reason to keep dredging our harbor. What the rail can't deal with could be handled by the local trucking companies. This is a good step back in the right direction. This will bring jobs back. Break your pencils we'll only need BLACK PENS when the dust settles on this deal.

Caroline Mitchell wrote on Mar 13, 2009 7:17 PM:

I would like to see |Passenger trains on this track,we con ship tourists from the I5 corridor over to the south
coast! It would be a fun and scenic ride!

ALFRED E. NEWMAN wrote on Mar 13, 2009 6:56 PM:

From what I hear, Central Oregon has a bunch of new jobs that will be starting in the Bend, La Pine area. New homes in La Pine, Trouble shooting center in Bend. Check it out. Hopefully this will help get some of the naysayers out of your hair...

David Kronsteiner wrote on Mar 13, 2009 6:48 PM:

Owes us all a bottle of Dom Perrion! He will retire off of this. He just wrote himself the biggest meal ticket in the history of Coos Bay! They aren't wasting any time pushing Brady to the front either. The bold & the beautiful. Out of the way! Fort Knox here we come! Wow, they pulled it off in broad daylight no less.

Fetts wrote on Mar 13, 2009 6:26 PM:

If a private company has eye's for Coos county there evil if the port want's to waste your tax dollar on a railroad that has gone broke in the hands of people who have ran railroads for years. and they want to give it a shoot with your tax dollar.If it would have been a money maker why Didn't Roseburg forest products and GP by it there into making money.Government getting invalved with a black hole once agian. Could someone tell us all who on the Port commision has rail road experince.And who will be held accoutable for things when it goes bad.Or will we have the usual blame someone else show we see all the time from other great leaders.

Old train lover wrote on Mar 13, 2009 5:36 PM:

Chug, a-chug, chug, chug, wooooo! woooo! Yes, she was com'n down the grade, doin 90 miles an hour, with a long line of flatcars loaded with logs.

Chug, a chug, chug, chug, wooo! wooo! wooo!

Port clowns and their next failed expensive project wrote on Mar 13, 2009 5:23 PM:

Not sure what's run worse, the Airport commissioners, Coosbay commissioners or these Port appointed clowns? Guess you would need a 3 sided coin to decide it & this area proves the OLD saying, "desperate people will do desperate things"!

Suzy wrote on Mar 13, 2009 5:15 PM:

Please make something great out of this. I like what Good Win said. "Jobs for change" I would love for this town to have a pulse again.

Rail line going nowhere to brokesville coosbay wrote on Mar 13, 2009 5:11 PM:

Brace yourself US Tax payer, another endLESS pit to pay off!

Coos Bay Citizen wrote on Mar 13, 2009 4:19 PM:

Mr. Bishop,

I am glad that you were able to acquire the railroad. I think that in the long run this will be a good business decision for our community. So good job for that.

However, please don't state that the rail road will not have a cost unless "engines" are running on it. All money has a time value. In the case of the 16 million you spend on the railroad, it certain has a real time value and is costing the tax payers. In addition, even if the loan has not interest charge, there is still the opportunity cost of money. In other words, this money is being used for the railroad and is now not available for other opporunities.

I thank you for doing your job, but please see the value, both time and opportunity, of money. Sometimes I feel that government officials don't take tax payer funds seriously.

Thank you.

everyman wrote on Mar 13, 2009 2:40 PM:

(que my theme music..today it would be "Higher" by Creed)

Time to stop whining in our lattes, people! I'm tired of reading, "We can't do anything because of the economy...the environment...the unemployment rate...the _______ (fill in the blank).

Put down your WII, your remote, your latte (ok, you can keep your latte, just take it along for the ride) and DO SOMETHING!!!!

Stop complaining about what's wrong and offer a solution. Don't have a solution? Then get out of the way and let somebody with more ideas or motivation give it a shot!

Get up, get out, or get lost!!

Thomas wrote on Mar 13, 2009 2:07 PM:

Now that it appears Yucca Mountain will never operate, there is virtually no chance that our changing national economy will ever need to import anything into Coos Bay which would even come close to making this 'Blackhole' railroad pencil in the foreseeable future.

Nit-picking wrote on Mar 13, 2009 2:04 PM:

You anti-LNG folks need to quit throwing the baby out with the bath water. You are going to unite everyone against you if you don't wake up and realize there is more to life than your cause. Not everything is about LNG there are a lot of people working, living and dying here that don't give a rip about you. But it will be a harder life for all of us if you don't quit salting the fields.

Fred wrote on Mar 13, 2009 1:14 PM:

It costs money to run a railroad and it requires revenues to offset these costs. Where will these revenues come from? In the absence of sufficient revenues for this railroad to be self sustaining, taxpayers will end up subsidizing the railroad much like they are now paying for empty airplane seats.

Joe Sixpack wrote on Mar 13, 2009 1:12 PM:

This is good thing but watch the whiners come out of the wood work!! (THE NOT IN MY BACK YARD GROUP)

Common Sense wrote on Mar 13, 2009 12:41 PM:

Can you believe Bishop would say such a quote:

"If you aren't shipping on it, you are not incurring a loss," he said.

I guess the INFLATED price for a rail line that has little or NO business that needs MAJOR work done before it can even function isn't a LOST of "USA TAX PAYER $$$" ????????

It's proves there is a SUCKER born every day....called the USA Tax Payer!

Good Win wrote on Mar 13, 2009 11:58 AM:

...for the area. Now lets kick the CAVE people out of the area and welcome JOBS for a change! Now that's CHANGE I can believe in.

Mark Smith wrote on Mar 13, 2009 11:47 AM:

What a total waste, several years before it can even begin to help our economy. In that time there may not be any businesses around that will be able to utilize the railroad.

This needs to happen quickly if it is to be of any benefit for our economy and local businesses.

Or the reality is we have another anchor chain around our neck

now what wrote on Mar 13, 2009 11:39 AM:

We now get to pay for this and south port just laid off 22. How many more lubmer companies will bgin to lay off staff. I hope that this may help our community. In this econonic time I am hoping that you are right in taking on this debt


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