Port of Coos Bay to buy closed rail line
By Associated PressCOQUILLE, Ore. (AP) — The Oregon International Port of Coos Bay has agreed to buy a rail line that has been closed for safety reasons since September 2007, providing a lift to coastal businesses currently using costlier alternatives to ship their goods. The federal Surface Transportation Board last month set a $16.6 million price tag for the 111-mile line that runs between Eugene and Coquille. The price was based on the scrap value if the line was abandoned. The government gave the port 10 days to respond and 90 days to close the deal with RailAmerica, the Florida company that abruptly shut the line. A port attorney notified the Surface Transportation Board this week that it would pay the $16.6 million. The port has until Feb. 18 to arrange financing. Once the deal with RailAmerica is signed, the port will also have to spend $3 million to $4 million — at a minimum — to repair the tunnels that prompted the shutdown. A rail consultant has been hired to examine the tunnels and determine the amount of work needed, port spokesman Martin Callery said. The port is also considering how it will go about selecting a short line rail operator to run the railroad, including a 19-mile section between Eugene and Vaughn that wasn't affected by the shutdown. "It's not our intention to be in the rail transportation end of the business," Callery said. Bob Ragon, executive director of the Douglas Timber Operators, welcomed the port's move. "We suspected they were going to take this action, and we're happy that they are," Ragon said. The earliest the line could be reopened, if all the finances fall into place, is late summer, Ragon said. (Copyright 2008 The Associated Press.) |
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