Ex-NP "CW" branch closure!

[Kurt Moose]

It's been announced that the "CW" branch will be tore up by the contractor's cause the State of Washington's bid was less than the scrapper's! :eek: Not too long ago, this was an excellent branch line with a lot of wheat coming off the line. The shortline that run's it now, Palouse River & Coulee City, (I think), doesn't think it's profitable anymore? :confused:

[BoxcabE50]

Kurt-

At least it's not the entire CW. I believe it's east from Coulee City, but not all the way. And the south end is another short line run by the Temple family?

I've noted similar previous behavior from Watco. Run it into the ground, whine for freebie government funding, (maybe get some, but it's never enough), then pull the plug.

graemlins/shakehead.gif

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[SDP45]

I grew up in Coulee City, so I know a few details. Coulee City is the end of the line. Has been since 1979 when the section between there and Wheeler, WA was abandoned.

I've been trying to get ahold of my uncle, who works for the grain elevator in Coulee City. Wonder what his take on this is.

So, it would be the entire remaining CW getting pulled up. I cannot speak of the P&L.

[BoxcabE50]

Originally posted by SDP45:
So, it would be the entire remaining CW getting pulled up. I cannot speak of the P&L. Dan-

It would be interesting to know what anyone along the effected portion has to say. And learn what sort of nonsense Watco has laid on them.

The Washington Central Branch, as I knew it from NP days, and into BN, ran from Connell to Coulee City to Cheney.

While a major portion would now be lost, the south end will still exist. Connell to Wheeler. That should now be the Columbia Basin Railroad owned by Brig Temple.

Columbia Basin Railroad (http://www.cbrr.com/)

:D

Boxcab E50

[SDP45]

Ken,
I had an opportunity to ride a speeder/putt putt on the section from Wheeler to Connell last month. Fun trip.
Spoke with my uncle tonight. He did not know very many particulars. The company he works for owns the elevators at all the stations between Wilbur and Coulee City. He said they have been shipping grain by truck to their mainline stations at Marlin or Wenatchee (for their elevators that are located on the old Mansfield branch that was abandoned in 1985). He knew nothing of the unit train loader at Ritzville.

He mentioned that as a 1st grader, years ago, he rode the last NP passenger train between Coulee City and Hartline for 50 cents.

[SDP45]

One last thing. The Central Washington built from Cheney to Adrian. From Adrian to Connell was the Connell Northern. Both NP subsidiaries.

[BoxcabE50]

Ok. I'd forgotten that predecessor combo. Just fixated on the Washington Central Branch name NP used during my lifetime.

So it sounds as though there's no business left for any rail service? At least, not grain....

:D

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[BoxcabE50]

Originally posted by SDP45:
One last thing. The Central Washington built from Cheney to Adrian. Well, the more I think about it.... I know that some of the line out there vicinity of Davenport, etc., was actually built by the Seattle, Lake Shore, and Eastern. C.1887. Part of their failed attempt to build a line from Seattle to Spokane. They ran out of money about 1889-1890.

Can't think of the station name where they quit.

:D

Boxcab E50

[SDP45]

Ken,
I've been doing some heavy research on the SLS&E this last week and they had a line from Spokane to Davenport.
The SLS&E was sold in forclosure in 1896. The eastern WA section became the Spokane & Seattle Railway. The NP bought it in 2 sections. Medical Lake to Davenport in 1889, Medical Lake to Spokane in 1900.
By the time of the BN merger, the only portion left was a spur out of Davenport to Eleanor. It never was upgraded to take anything bigger than a 40 foot boxcar or a GP9.

What I would like to find out is if the ROW of the section between Spokane and Medical lake became part of the Washington Water Power Company interuban. What I have seen so far suggests that it did.

[SDP45]

Forgot one thing. SLS&E had survey crews all the way out to Coulee City. I have not been able to substantiate if the maps I have seen that show a line beyond Coulee City to St. Andrews was NP or SLS&E. It was not built beyond Coulee City, but you can pick out the graded ROW for about 3 miles up the hill.
For the record, Coulee City was more like a spur off the CW. The switch was at Odair, where the branch continued south on to Wheeler and Connell. This extension to St. Andrews would have been an addition to the spur to Coulee City.

[BoxcabE50]

Dan-

The book you want is: "Report On Washington Territory." It was published by the SLS&E in 1889. Request it from your library. It will tell where all the surveying was done as of late 1887-early 1888.

AFAIK- The Spokane -Medical Lake sgment did indeed go to the Interurban.

I have heavily researched the west side. Seattle to North Bend-Sallal Prairie. Cannot find my notes on the east end. Where it was built, and disposition. Have that info somewhere.

BTW- They surveyed two crossings of the Cascades. One was the route on which The Milw later built....

Did you know they, SLS&E principles), were intending on mining not only coal, but iron ore in the Cascades?

:D

Boxcab E50

[SDP45]

OOOHHH!!!

I have not heard of that book.

I can imagine mining coal, but I have not heard of iron ore deposits. Where abouts were/are they?

[BoxcabE50]

Dan-

There are some mineral deposits in the Cascades. Remember why the Everett & Monte Cristo RY existed.

These deposits I reference, were in what we'd call far eastern King County. Principals and investors of the SLS&E explored all around the area. Had mining claims, etc. Denny family members included. Hence the reason Denny Creek received it's name.

Remember how Kirkland got it's name? Peter Kirk. Who was going to make that town the "Pittsburgh of the west." He was set up to get coking coal from mines on what is now Snoqualmie Ridge. It was to be hauled by the SLS&E.

Rats! I still can't think of the pass name they surveyed, which was NE of North Bend. Where are my old notes when I need them???

:D

Boxcab E50

[SDP45]

The nearest library with that book is California. Oh well. I could buy one online for a small fortune as well.
In looking for it, I did see a small map of the "completed" line. Looks like it would have gone through Okanogan.
The Encyclopedia of Western Railway History lists the SLS&E becoming the Seattle & International Railway. This was sold to the NP in 1901.
No where have I found the reason for the forclosure. Any clues?

[BoxcabE50]

They won't do an interlibrary loan? If so, that's sad.

SLS&E ran out of money, 1889-1890. Then came the panic of 1893. Somewhere in there, the reorganization as the S&I, and NP acquiring interest.

It's in my notes. Guess I'll need to dig them out. No. I won't. @#$^^#%$!!! They are downstairs. And due to the mess from moving things, to drywall a room. Ugh. Buried.

:(

Boxcab E50

[SDP45]

The library netted a different gem. "The History of the Northern Pacific Railroad," by Louis Tuck Renz. Goes into detail about the happenings of the SLS&E, plus the disposition. Will have to read in detail what happened.

It also mentions that the CW was to be built into the mining areas near Okanogan, but was put off. Like I said before, there is a grade leading out of the Grand Coulee, though it peters out after about 3 miles. The intention was St. Andrews, which is on the way to Okanogan.

[BoxcabE50]

Yes. I have that one by Renz. He also wrote another smaller book, that give a lot of corporate dates.

Also seek out biographies on the Denny's, and others involved. Those writtings will add some very interesting light to the subject.

But if you want the deep corporate background, written at the exact time it was all happening, that book by the SLS&E themselves, is likely the very best opportunity available.

In my buried notes is a length bibliographic list. Would keep you really busy for quite a while, as it did for me, just piecing together their activities in King County!

:D

Boxcab E50

[SDP45]

I just bought a beat up copy of the SLS&E book. It is missing the folding maps, but I have that figured out. Turns out the book is at the Central Washington University library in Ellensburg. My brother-in-law is a student there. I'll just tag along with him to the library and see if I can photocopy it sometime in January.

I've also found 2 photos of SLS&E steamers. One was named the D H Gilman. Wonder who he was? :confused: :D

Same book also had a picture of a steamer from the Waterville Railroad.

[ December 27, 2005, 11:07 PM: Message edited by: SDP45 ]

[BoxcabE50]

Trying to scrounge my memory on this. There was a Daniel Hunt Gilman. The man who once had his name affixed to what later became Issaquah. (There is currently a shopping area there known as Gilman Village. And a street named Gilman Blvd.) If I recall correctly, he attained the position of SLS&E VP circa 1888-1889.

smile.gif

Boxcab E50

[SDP45]

Any chance of you digging out that bibliography?

[BoxcabE50]

Not right now. I was barely able to get out of bed this morning. My back is trying to give out. Yet another disk is slipped, or going down. It may be a while. Sorry. I have it. But moving that mess downstairs may not happen for a little while.

:(

Boxcab E50

[SDP45]

The eastern section of the Lake Shore was also acquired on July 10th, 1896 by a new company called the Spokane and Seattle. Its officers were the same as those of the Seattle & International, the west side Lake Shore line.
The 50 mile line from Spokane to Davenport was always operated by the NP. It closely paralleled the Washington Central, successor company to the Central Washington. This latter company had been sold at Spokane January 19th, 1898, and bid in by the bondholders for $100,000. The NP acquired all of the capital stock and leased it in March. In March a year later the NP purchased the Medical Lake-Davenport section of the S&S, and in October, 1900, the Spokane-Medical Lake section. Along with the purchase went the abandonment of the 29 miles from Spokane to Ditmar which was the section paralleling the Washington Central. No better example of railroad over-expansion and disregard of sound business principles can be found than that shown with the Central Washington and the eastern section of the Lake Shore. The Washington Central was later extended to serve much of the Great Bend region of Eastern Washington and became a very fruitful branch.
In August, 1902, the NP decided to extend the Washington Central to connect with the GN main line west and thus possibly give another quicker line to Puget Sound. In May of 1903 Larson & Foley of Spokane started track laying from Coulee Jct. and the 21 miles to Adrian on the GN were ready September 11th. Five years passed and in July, 1908, a line from Adrian to Connell, on the NP main line north of Pasco, was considered as a joint venture by the NP-SP&S-GN. There was no action so in June, 1909, the NP incorporated the Connell Northern and by November 1st, 1910 the 73.5 mile line Connell to Adco had completed the big loop through the Big Bend of the Columbia. This was to be a very valuable feeder to the NP in later years after the completion of Grand Coulee Dam and the Columbia Basin Project.

[SDP45]

Most of these have good info in the CW as well as the SLS&E. This is the list I have assembled so far.

“The History of the Northern Pacific Railroad” by Louis Tuck Renz, Ye Galleon Press, Fairfield, WA 1980
“Pacific Slope Railroads” by George B. Abdill, Superior Publishing, Seattle, WA 1959
“This Was Railroading” by George B. Abdill, Superior Publishing, Seattle, WA 1958
“Encyclopedia of Western Railroad History Vol. III” by Donald Robertson The Caxton Printers, Ltd., Caldwell, Idaho, 1995
“Postmarked Washington Lincoln County” by Guy Reed Ramsay, Lincoln County Historical Society, Davenport, WA no date
“Postmarked Washington Grant County” by Guy Reed Ramsey, Grant County Historical Society, Ephrata, WA 1972
“A Report on Washington Territory” by W.H. Ruffner, Seattle, Lake Shore, and Eastern Railway, New York, 1889
“The Mightiest of Them All: Memories of Grand Coulee Dam” by L. Vaughn Downs, ASCE Press, New York 1993
“The Seattle, Lake Shore and Eastern: Judge Burke's railroad apprenticeship” by Robert C Nesbit
“Reorganization agreement of the Seattle, Lake Shore and Eastern Railway Co” [25 Mar. 1896] by James D Smith

[BoxcabE50]

I've not seen the "postmarked" books you listed. When referencing the "Encyclopedia Vol III," look carefully. You'll find some of his dates conflict. And cannot be reconciled with other sources.

smile.gif

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[BoxcabE50]

Originally posted by SDP45:
“The Seattle, Lake Shore and Eastern: Judge Burke's railroad apprenticeship” Yup. Judge Burke is the first half of the noted "Burke-Gilman Trail." Extending from Ballard (Seattle), to Woodinville. If proponents can ever get those evil tracks out of the way, on through Redmond, to Issaquah.

Residents between Redmond and Issaquah are very unhappy. And wish the tracks were still in. (Wanted them out. Then discovered their error!) NIMBY's who don't want that trail next to their expensive beachfront property along Lake Sammamish.....

:rolleyes:

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[SDP45]

I'll keep that in mind about the dates.

Guy Reed Ramsey had records of the whole state of Washington. I've seen most of the Eastern Washington counties except Yakima. The book covering Spokane and Whitman counties also lists all RPOs that ever operated in Washington, due to his research on postal history.
Some of these books are really hard to find, as they were not widely distributed, being generally published by that county's historical society.
The Spokane county book is listed as Vol 1 of a 3 volume set, yet sadly the other 2 volumes may never be publised.
I have copies for Grant, Lincoln, Douglas, Adams, and Kittitas counties. They are a great source of railroad history, especially when researching the CW.

[SDP45]

One more SLSE book.
Sons of the Profits by William C. Speidel, Nettle Creek Publishing Co., Seattle, 1967

His book has quite the impressive bibliography to research.

[BoxcabE50]

Originally posted by SDP45:
His book has quite the impressive bibliography to research. That's how I developed my info. By going down lists such as this one. You'll quickly find which volume has any value to you.

There are books that you can get, from places such as the UW, that list biographies of notable early Washingtonians. Many SLS&E officials, backers, etc., can be found that way.

:D

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[Kurt Moose]

While were on the subject, whenever I go to Spokane from Seattle on I-90, past Moses Lake, on the south side of the interstate, there's an old abandond grade. I have looked everywhere, and there's no mention of a rail line near there, ever. graemlins/headscratch.gif Any taker's?

[BoxcabE50]

Graded. But not built. As far as I understood, the only portion that ever saw rails, is the Bassett Junction to Schrag segment. Was to have rejoined the NP, vicinity of Ritzville.

I have seen a map, that showed a dotted line west from Bassett Jct., to Ellensburg. But it got no further than that. I have always wondered how they'd have crossed the Columbia River. Knowing those high volcanic cliffs.....

:D

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[SDP45]

You can see specifically where it joins the main at Ritzville. It is right next to I 90 there as well.

[BoxcabE50]

Whenever I have driven along I-90, it's always appeared to have quite a few tight curves. Makes me wonder how viable the route would have been, if actually built.

smile.gif

Boxcab E50

[SDP45]

I found a map of the proposed extension of the CW from Coulee City up to the Okanogan area:

http://memory.loc.gov/cgi-bin/map_item.pl?data=/home/www/data/gmd/gmd412/g4126/g4126p/rr005020.jp2&style=rrmap&itemLink=D?gmd:4:./temp/~ammem_vMov::&title=Northern%20Pacific%20Rail way%201900. (http://memory.loc.gov/cgi-bin/map_item.pl?data=/home/www/data/gmd/gmd412/g4126/g4126p/rr005020.jp2&style=rrmap&itemLink=D?gmd:4:./temp/~ammem_vMov::&title=Northern%20Pacific%20Railway%201900.)

[BoxcabE50]

It's possible, as I have seen it happen before, that land was actually acquired in advance of potential construction. NP may have actually owned some of the property. If so, they'd have been paying taxes. So, sometimes, if they've survived, old County Assessors records will have blueprints in files.

:D

Boxcab E50

[SDP45]

Some counties are putting records like these online, at least the current owners.

[BoxcabE50]

Let me know if you have any luck researching this...

:D

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[SDP45]

Interesting tidbit:
I can make out the ROW of the Bureau of Reclamation railroad in places that are now under the water of Banks Lake, just north of Coulee City. The lake itself is owned by "USA" but there are still narrow bands of land ownership underwater. One has to be the railroad, the other has to be a road of some sort.

I'm still researching...

[SDP45]

Found a book that details the building of the CW and the SLSE in the "Big Bend" country.
"Across the Columbia Plain" by Peter J. Lewty Washington State University Press 1995

Only 1 chapter on our subject, but it has lots of details not found elsewhere. His bibliography and notes for this chapter are from firsthand accounts and periodicals from the day.

[BoxcabE50]

Interesting! I was just given a copy of that book. Have not started reading it as yet.

:D

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[Kevin M]

I just moved to Cheney last september so my wife can finish her masters at Eastern Wa U. It seemed to me they moved quite a bit of grain traffic off the CW branch in Sept and Oct. So when are they accualy planing to rip it all out? I thought the state was going to step in and buy it because the WDOT figured it was cheaper to maintain the RR then the extra maintince the roads will need because of the incresed truck traffic.
Kevin D Mumaw

[SDP45]

I'm not sure what happened anymore, but there are no plans for future traffic, with car supply being blamed. PCC cannot get any cars from BNSF. Most operators on the line are shipping to mainline stations, such as the big one at Ritzville, or Marlin.

There are 2 trains of empty well cars stored at Reardan, which are helping earn revenue from storage fees. The planned speeder/putt putt trip for the first weekend in April may not happen because of this.

[BoxcabE50]

I wish the state would acquire, and railbank that line. But I doubt the luck.

Meanwhile, bNsF continues to operate as always. Causing yet further economic damage to small communites everywhere. A perfect example for why there should be no more mega-mergers.

graemlins/225.gif

Boxcab E50

[SDP45]

Found a little info on the Altamont Press discussion board:

With all the discussion about CW and P&L branches lately, and with a public hearing looming Friday I thought a little history of Watco was in order. After being little more than an industrial switching company in the northwest for many years (Wallula, WA and East Helena, MT) Watco enters the northwest shortline picture big time on Nov. 20, 1992 with the purchase of several Union Pacific branch lines in Eastern Washington and Northern Idaho. These lines include Hooper Jct. WA to Winona to Thornton, WA, Winona to Colfax, Pullman, WA. and Moscow Idaho. And the Purchase/Lease of Wallula-Walla Walla-Dayton-Walair, WA lines and the Walla Walla to Weston, OR. line. Soon after arriving on the scene, the branch to Weston gets closed, and the branch to Dayton gets sold off to local county governments so that goverment funded track rehab. can take place. Later, the State of Oregon comes up with money to rehab and reopen the Weston Branch. Local governments in conjunction with Washington State Department of Transportation start the state grain train program, with Watco's carshop in the Port of Pasco getting the contract to do the work on the well used cars purchased by the state. Initially the state cars are only used from the Walla Walla area branches to Portland, later Watco develops a grain shuttle train to a river port elevator near Wallula off the UP main line. Watco brings in a small group of its own cars for use on the grain shuttle, and use of grain shuttle and state cars spreads to the lines out of Hooper. LINES OUT OF HOOPER--Watco starts up with some good press and even starts a excursion train for one summer (in partnership with a Portland tour operator), but eventually Watco begins to complain about the track conditions (track long neglected by UP) and they begin to have derailments. Watco gets the Port of Whitman County to purchase track maintaince machines in exchange for the "title" to its two Hooper area GP-35's (792, 799 ex-UP exx-WP). Later Watco is able to secure some track repair funds from the WSDOT and the Port of Whitman. Watco does construct a new siding near Hooper to service a gravel pit there and shuttle rock to Pullman for a local contractor. Watco brings in a small group of ex-NW hopper cars for the service---but cars leak badly and service eventually fails. Watco begins to worry about a "headcut" causing a bridge to fail near Pampa, WA and claims to have no money to fix the problem. After a couple of years of exchanges with the Port of Whitman County, the Port of Whitman County buys the bridge in order to gain funds to fix the problem--although there is no evidence anything has been done to stablize the situation. P&L BRANCH, CW BRANCH.--In the late Spring of 1996, Watco forms another railroad to buy the BNSF lines between Marshall, WA and Moscow, ID, (P&L BRANCH) the abandoned but in place Moscow to Arrow, Jct line, the Palouse, WA to Bovill, ID branch (ex-WI&M RY) and the Cheney to Coulee City, WA (CW Branch). Watco starts the operation with little fanfare and slips faded Xerox letters through the doors of customers that provide shippers with incorrect phone numbers for contacting the railroad. Power and employees are in short supply and service suffers. (Watco purchases additional motive power in the form of ex-CR GP-35's that are in poor condition and several have major problems throwing oil out the exhaust--units are parked in Cheney next to the ADM flour mill and a sizable portion of the white mill is turned black by the oil from the units exhause angering ADM to no end. Watco relocates the units to another location that results in the units leaking into a stream. A group of ex-CSX GP-30's arrive later in better shape.) With the Watco purchase of the P&L Branch shippers become hopeful of the reopening of the Moscow to Arrow JCT line in hopes of starting grain shuttle service to the ports in Lewiston,ID. Spring floods prior to the 1996 purchase damage the Moscow to Arrow line and Watco claims it too costly to reopen, later newspapers report that the line had already been sold by Watco to A&K Railroad materials to finance purchase of the BNSF lines. A&K quickly scraps the line for its heavy rail and refused to entertain any offers from others to buy it. Also damaged in the '96 flood was the trackage between Deary and Bovill, ID. (Watco quickly closes the line between Harvard and Deary after a derailment on it's second trip up there.) Another customer celebrates the sale of the BNSF lines to Watco---Bennett Lumber Company near Harvard, ID announces its eager to see the shortline as it wants to ship some of its lumber out by way of UP, resulting in the doubling of its shipments, Bennett's are disappointed to learn that the BNSF sale agreement will still block their access to UP. A clay mine is proposed near Bovill, but Watco allows A&K to scrap the line between Harvard and Bovill (in order to pay off a loan made to Watco by A&K), but tells the owners of the proposes clay mine that they would gladly rebuild the line should the mine get built. Watco and BNSF succeed in gaining traffic hauling farm machines to Colfax, but just as the machines arrive, Watco tears out the unloading ramp in Colfax and customer has to stack blocks to unload the machines, later Watco tells the customer to unload the machines in Palouse and truck them to Colfax, but the road between Palouse and Colfax is restricted both due to weight and clearances and customer opts to unload in Spokane. Just after the year 2000, Washington State University begins to plan to replace it's coal fired power plant in Pullman with a natural gas powered on. The WSDOT and area shippers become concerned that the loss of coal traffic (off the UP side of the operation) will tip the scales enough to result in the loss of rail service to the whole area and talks begin with Watco to have the WSDOT buy it's palouse area operations known by now as the Palouse River and Coulee City Railroad (Watco had merged its operations into on common company by then) Walla Walla area lines would not be covered by the sale. Sale takes place in 2004 and Watco gets an automatic 15 year RENT FREE lease on the lines. No other rail operators are permitted to bid for the operation. Coal traffic stops in 2005. Since 2000, Watco has removed all elevator and team tracks from service on its line between Colfax and Pullman. A salvage company eyes Albion as a reload location for scrap salvaged from the nearby Whitman County Landfill---weeks later Watco crews begin lifting sidings in Albion. Watco get $7.8 million for its Palouse River and Coulee City lines and as part of the deal---for unknown reasons--the WSDOT only wants a 20 foot right-of-way through the City of Pullman and Watco is allowed to sell the land yeilding another $1.5 million. WSDOT does not buy any of the railroad located in Idaho, and in Moscow during the summer of 2005 Watco sells off and scraps 99% of the ex-BNSF trackage in town and some UP trackage to allow University of Idaho to expand it's campus downtown. Some UP trackage is also removed turning Moscow into a switching nightmare with no runaround trackage. At least two shippers lose service in the move (contrary to STB filing by Watco)---Latah County Grain Growers and Columbia Tractor lose service. In 2005, WSDOT awards a feed mill located on the CW Branch a grant to build a large car unloading facility and the company expects to unload 26 car units of inbound feed, also in 2005, BNSF donates it's Geiger Spur to Spokane County and Spokane County begins the public hearings needed to connect the spur to Watco's CW branch between Medical Lake and Cheney in order to eliminate the portion of the spur passing through Fairchild AFB. In November of 2005, Watco imposes a $250 per car surcharge on all cars moving on its former BNSF lines. Watco claims the surcharge is needed to cover revenue lost by traffic being siphoned off by a grain train facility built by CO-AG near Ritzville. All remaining customers stop shipping on the CW Branch and Watco closes down the line in December 2005. But shippers on the P&L Branch tolerate the $250 surcharge and traffic into Moscow actually grows with inbound Lentil shipments. Bennett Lumber company near Harvard announces in too will increase traffic as well from 275 to 350 cars per year. Early January 2006 Watco raises surcharge to $870 per car, and remaining customers immediatly stop shipping. Watco employees are told that the P&L Branch will be shut down completely by May 2006 and employees will be terminated or relocated. Watco has imposed no surcharges on its former UP trackage in spite of the trackage being in much worse condition and prone to derailments. UP has also raised its grain rates so there has been a sharp decline in traffic in 2005, (as well as the impact of the Ritzville CO-AG elevator). Sources for this long winded summary. WATCO, WHITMAN COUNTY GAZETTE, WHITMAN COUNTY PUBLIC RECORDS, LEWISTON TRIBUNE, WALLA WALLA UNION BULLETIN, WSDOT, SPOKESMAN REVIEW, TRAFFIC WORLD, THE SHORT LINE, PUBLIC RECORDS--SURFACE TRANSPORTATION BOARD, JOURNAL OF COMMERCE, CAPITAL PRESS, DAYTON CHRONICLE, TRI-CITIES HERALD, LATAH COUNTY PUBLIC RECORDS, BENNETT AND ASSOCIATES--REAL ESTATE, CASE/IH, thanks to my Uncle Ben in Colfax, and my brother Joe in Walla Walla for helping out sending me info. when I'm not able to be there (Pasco)myself.

You'll note that when I got ripped apart a couple of weeks ago for making the same (undocumented) claims, the guys didn't use their names. HERE IT IS WITH SOURCES. Good job, Ted.

I wrote the following this morning, but was waiting until later to post. I guess I'll paste it in now. It's not an anti-WATCO piece since I don't have to do that one again.

The previous CW thread is starting to get too far down the page and I’m too lazy to scroll down, so I’ll start another one here.

As far as I know, WATCO is still running its own grain shuttle down to Wallula using the UP Hooper connection out of the Colfax-based operation. If they are serious about keeping the business that they have or have lost (as long as we are discussing pipedream new lines to bypass the brutal BNSF), there’s another option that might be open to WSDOT: Remove the 10 miles of very good track between Marshall and Spangle and re-connect Thornton (current end of the branch and grain shuttle operation) with Oakesdale (site of some of the north end’s most stable shippers) using the abandoned UP roadbed. That section was severed in about 1990 and is only 7 miles long. I’d then tear out Oakesdale-Palouse (I’m not aware of any current shippers in that section). I’m making the assumption that the big elevator at Fallon probably trucks its grain down to Lewiston these days—they were the only shipper between Palouse and Pullman. How many “active” shippers are there anymore at Palouse proper? Is Bennett on the W.I.M. the ONLY active shipper on the south end? Remember that the viability of the P&L line had a lot to do with the amount of traffic off of the St. Maries River’s south connection at Bovill and that that traffic was cut off by the flood damage to the east end of the W.I.M. At the time, the UP was looking at their Plummer line (the STMA north connection) and seeing the end of traffic out of Wallace and 2 trains a week from STMA/Plummer of about 20 cars each. They are now making 3 trips a week averaging a good 30 cars each. Many of these are now interchanged to the BNSF at Spokane. The P&L became a long, dead-end branch—which is why they spun it off.

On the CW line, the problem is that its location makes it the “read-headed stepchild”. The current line could be replaced with a 15-mile relay between Coulee City and the ex-GN mainline at Adrian—which could let the 40 miles between Almira and Davenport (or 50+ if you extend the removal to Reardan come out). The problem is that the BNSF doesn’t want to lug loaded grain trains WB over Stevens Pass, so the cars have to get hauled back towards Spokane anyway, but it does make sense to remove 35 miles of un-needed total trackage. If the BNSF doesn’t want to take the cars down into Spokane and back up to Cheney, put in a connection at the Deep Creek flyover and have the trains use that part of the CW line to Cheney. The first 5 miles of the CW line out to Five Lakes is going to remain in place anyway (even if the entire rest of the line is abandoned) once it becomes the new connection for the Geiger Spur. Fact: There is an on-hold plan to build a shuttle loop on the BNSF mainline somewhere south of Coulee City, so that issue will be solved anyway unless WSDOT decides to spare the highway by considering the 15-mile RR rebuild. I have first-hand knowledge of other long-since removed connections that WSDOT is considering funding, so none of this is outside of possible.

Traffic on the CW Branch dried up after Watco imposed a $250 per car surcharge on Nov. 17. Line is now closed due to lack of traffic, and a fan in Cheney told me that the crossing signals on the line have been taken out of service. Some traffic remains on the P&L Branch, but "due to the decline in business" Watco is upping the surcharge to $870 per car on Jan. 6. Most customers have cancelled their cars on order for after that date. Moscow/Pullman Daily News ran a story on the surcharges on 12/23/05 and how Bennett Lumber company is really mad and is going to lawmakers claiming Watco is trying to kill off the railroad. Watco claims that it has to raise rates to cover losses caused by raising rates. Go figure. (If an item doesn't sell at a retail store they discount it or run a sale. Watco's solution would be to raise prices till it sells given the logic they told the newspaper.) Sadly, I agree with Bennett Lumber, they are trying to kill the lines off. I would think Watco would want to sell the CW Branch to the state and have the state find a different operator rather than go to the expense of a possibly messy abandonment process.

I think that everybody would like to see the CBRY get everything that it can. That Moses Lake-Quincy plan is interesting but confusing--bewildering, I guess.

WSDOT is somewhat serious about "their" railroads. There is some investment interest in maintaining the Coulee City line by the Feds also due to that line being the only close RR access to Grand Coulee Dam when they need a turbine brought in. I have done track inspections and rehab reports for Chelan County P.U.D. on both of their dams (Rock Island and Rocky Reach) within the past few years. Rocky Reach's spur was fixed in 2002 and Rock Island is scheduled for 2006. In both cases, the spurs were unused for many years and in need of expensive rehabilitation to bring turbines in. Grand Coulee had a couple delivered a few years ago and will need more. They get offloaded at Wilbur and trucked the 20 miles to the dam. The State is also (financially) assisting in the construction of a new spur track for a growing fertilizer (and planning on feed grain) operation at Creston. The problem is that WATCO markets traffic for the line (or at least, they are SUPPOSED to).

The main problem on the Coulee City side is that, except for the first 10 miles or so, the rail is old 85# jointed stuff from the 50s.

[BoxcabE50]

I think most keen observers have learned to have a very healthy skepticsim where WATCO is involved.

graemlins/shakehead.gif :rolleyes:

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[Kevin M]

I did see a train coming off the CW line today into Cheney today, it was all empty stack cars that they had been storing somewhere up the line.
Kevin D Mumaw

[BoxcabE50]

This may be the cleanup movements. Getting ready to abandon.

:(

Boxcab E50

[Kevin M]

I am not sure if it is for the CW branch, but there is some MOW equipment sitting on the South end of town. Most of it is BNSF gear, would they contract out with them for the removal of the line? For several months PCC has kept a GP40-2W in Cheney and as of yesterday there is also a SW1500(???) keeping it company.
Kevin D Mumaw

[Kurt Moose]

Trainorders had a story about this on Tuesday. The State of Washington has backed out since the price of steel has tripled and now they want more money for the line since it's worth more as scrap!! graemlins/shakehead.gif

[BoxcabE50]

That's sickening news. I can imagine that other rail lines will now be ripped out. For the quickie, one time profit. Leaving the long term loss to everyone else.

:mad:

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[SDP45]

I'm planning on going up to Coulee City and Hartline to shoot things before the rails go. I have so many childhood memories from there, this will be my last chance to capture it all before it is gone.
Got my first cab ride at Coulee City on an old GN GP9.

[BoxcabE50]

Hey Dan-

Are there any elevators still linside at smaller stations? Thinking about the old fashioned wooden styles. Would like to see photos of those!

:D

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[SDP45]

Ken,
They are at least covered with tin, though I think there is still one in Coulee City that is painted wood.
If I get out, I'll certainly get pictures.

I know the BNSF website has pictures of all the towns on the CW, but the pages are not loading. For example, Coulee City:
http://domino.bnsf.com/Website/stations.nsf/efaf9580c6698b99062564a7007b2095/59a1e030a60d4827862570d8005714a2?OpenDocument

Maybe it will work later.

[SDP45]

http://www.capitalpress.info/main.asp?SectionID=67&SubSectionID=792&ArticleID=22756&TM=82563.45

Interesting article on what happened at the big meeting in Colfax over the CW.

[SDP45]

http://www.palouse.org/rtpo/PRTPappendixCgrainhauling_rpt.pdf

Interesting state study on Eastern Washington shortlines. Big document. 187 pages. Some good info.

[SDP45]

Spent about 3 hours taking photos today of Coulee City, Odair, Cement, and Hartline. There are about 50 photos. Just need a place to host them to share with you all.
I made a discovery today. The former Bureau of Reclamation right of way leading north from Odair. There is some very visible grade next to Highway 2.

[Kurt Moose]

That BNSF station list is cool! No pics loading like you said though.

[BoxcabE50]

Originally posted by SDP45:
Interesting article on what happened at the big meeting in Colfax over the CW. Having seen this before- Essentially, nothing happened.

Watco is going to do what they always do. Run a con. They get a rail line, operate it into the mud. Then whine "either GIVE us money, or we scrap it."

:mad:

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[Kevin M]

There is a artical in todays (satarday feb 18) Spokesman Review about the CW line. Basicly the farmers and shippers on the line are upset at the possible closuer of the line and the satate is going at it with Watco still. You can find the arltical on the web site but you need to subscribe to it first.

http://www.spokesmanreview.com/news/

Kevin D Mumaw

[BoxcabE50]

Just a thought- Am thinking that if Watco ever wants the State to work with them again in the future, they might want to tread lightly here. And deal with the State on this. They certainly won't lose any money!

:(

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[SDP45]

Kevin,
I cannot seem to find the article. Any chance of posting the article itself?

[Kevin M]

Sorry Dan, I read it in the newspaper I saw sitting on a counter at a restraunt in Spokane. I also went to a train show at Spokane CC on sunday and talked to some of the Members who are building the muesum at Rearden and they are all very concerned about the possible tearing up of the line.
Kevin D Mumaw

[SDP45]

I nearly went to that show, but had to work. I have wondered how this would affect them. Thanks anyway.

[Kevin M]

Well at least as far as N scale the show was a bust. There was hardly and N scale and most of it was wayover priced, how about a NP LL GP18 for $90 or a IM NP FT set for $175.
Kevin

[BoxcabE50]

Originally posted by Kevin D Mumaw:
....., how about a NP LL GP18 for $90 or a IM NP FT set for $175.Ouch. I hope that LL GP18 was at least the current run! That's at full MSRP.

Some dealers don't comprehend that a lot of folks go to shows hoping to find a few bargains. They can pay MSRP any other day at the hobby shop. So why waste time at a show, for more of the same....

:rolleyes:

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[Kevin M]

PCC was taking some empty well cars up the line this morning so there is still some activity on the CW.
Kevin D Mumaw

[SDP45]

Washington Wheat Commission on the fun with the CW:

http://www.wawheat.com/article_0206whitepaper.asp

Dan

[BoxcabE50]

Whoever wrote that Wheat Growers paper, did an excellent job! graemlins/notworthy.gif

Now, let's hope that Olympia does something worth while!

I would also like to see someone deliver a solid boot in Watco's rear end. Their record is quite clear on these matters: Invest nothing. Run it into the ground. Then threaten to abandon, if nobody GIVES them money. Legal? Yes. Ethical? Not at all.

graemlins/shakehead.gif

Boxcab E50

[SDP45]

Here is a recent report (3-6-06) from the Washington State DOT (department of trucks :D )

http://www.wsdot.wa.gov/news/2006/Mar03_RailroadAnalysis.htm

and

http://www.wsdot.wa.gov/Projects/Rail/PCC_Acquisition/

[Kevin M]

With BNSF offering to serve the line mabey things are looking up, and hey, seeing as I start Condutor training in Spokane in two weeks mabey I can run the line someday.
Kevin D Mumaw

[SDP45]

To quote a post at Altamont Press:

The following is from the front page of the March 9, 2006 edition of "The Davenport Times." They don't have a website, so I'm retyping it all for you.

Wheat growers scrambling for transportation options in the wake of unaffordable new surcharges being charged along the Palouse River and Coulee City Railroad (PCC) have new hope this week, state sen. Bob Morton (R-Orient) reports. Morton said that BNSF issued a written offer to the line's owner, Watco, on March 2, offering to provide haulage between Coulee City and Cheney for a period of up to five years. BNSF said the offer would would remain on the table for 45 days while the two companies work out a formal agreement.

The offer from BNSF calls for haulage trains of no more than 78 car units originating on the PCC between Coulee City and Cheney with haulage rates of $110 per loaded car. The rate would be adjusted annually according to 75 percent of the Rail Cost Factor, unadjusted for productivity (RCAF-U). The company would provide transportation up to a maximum of 2025 loaded cars per year. Any more than that would be moved at BNSF's discretion. In the letter, BNSF also offered to work with PCC and its customers to develop a shuttle facility at Coulee City. "We believe such a facility may reduce total transportation and handling costs and best serve the shippers and producers in the Coulee City-Almira area for the long term," the letter said.

There was more published, but I think this was the important part.

[BoxcabE50]

Without knowing intricate details, looks like a very reasonable offer. WATCO would look very bad to not take thos on. We shall see....

:rolleyes:

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[SDP45]

Ooooh. The bad news has surfaced. The haulage agreement is only between Cheney and Ritzville, not Coulee City. Got this from the general manager of the grain elevator company at Coulee City.

[Kevin M]

Last night I got stuck at the highway/railway crossing in cheney cause BNSF was pulling a big cut of cars off the PCC, power was GP28's 1521 and 1522, both operation lifesave units. This is the first time I have seen BNSF on the branch. A haulage agreement from Ritzville is not going to do a thing to help the roads out up north though.
Kevin D Mumaw

[BoxcabE50]

After re-reading the earlier info Dan posted, I am confused. Could there be two parts of this discussion with Watco? Otherwise, how was mention of Coulee City mixed in? Accidental? Rumor?

graemlins/headscratch.gif

Boxcab E50

[SDP45]

I understood it to be accidental. The newspaper from Davenport, WA said Coulee City, but the agreement did not.

[BoxcabE50]

Bummer.

:(

Boxcab E50

[SDP45]

From the Moses Lake, WA "Columbia Basin Herald."

By Matt Weaver

PCC Railroad future in question

The fate of a short-haul rail line has some people concerned about the fate of the area's rail service and roads.

Sen. Mark Schoesler, R-Ritzville, Washington, explained in his February and March 2006 SRC Ag Alerts, releases from his office, that the state Legislature agreed in 2003 to buy and renovate three key sections of the Palouse River and Coulee City (PCC) Railroad from Kansas-based Watco Companies, Inc.

In November 2004, the state paid $6.5 million to buy the P&L Branch, which runs north and south between Marshall and Pullman, and the PV Hooper Branch, a line linking Hooper, Winona, Thornton, Colfax and Pullman, WA.

But the state failed to purchase the 108-mile CW Branch, which runs between Coulee City and Cheney. The Legislature allocated $1.2 million for the line, and Watco and the state Department of Transportation had a verbal agreement on the sale of the branch, but no signed agreement. Watco is now asking for more money for the stretch and closed the line down in November 2005.

According to e-mails dated April 25 from Barbara Ivanov, director of the WSDOT Freight Office, with recipients including PCC stakeholders and House and Senate members in affected districts, Ivanov's office and the state's office of financial management began discussions April 24 with Watco to restart rail service on the CW and P&L branch lines, with the intention of developing a short-term agreement providing access to rail service for shippers on both lines during the 2006 harvest season with no rail car surcharges.

In an e-mail dated Tuesday, Ivanov reported that WSDOT had learned Friday that a shipper on the CW branch line attempted to order rail cars last week and was informed by Watco representatives that Watco embargoed that line in December.

Sen. Joyce Mulliken, R-Moses Lake, worked with Schoesler and others to persuade grain growers and Watco earlier in the year to reach agreement to keep the line in operation. She felt that shippers who use the rail line, the WSDOT rail division and Watco needed to come together in order to do so. Mulliken explained that the department needed to demonstrate an ability to purchase the tracks, Watco to be willing to work with the state and shippers, and shippers to be willing to commit to the service. The parties involved need to recognize that Watco is in the business of making a profit and can't operate at a loss and still be in business, while shippers need service in a timely manner to make rail lines equitable to shipping by truck, she said.

Coulee City wheat farmer Phil Isaak said an estimated 13,000 semi-trucks, primarily carrying wheat, will go on public roads, primarily county roads running north and south, if the rail line fails to operate. It's an amount of traffic that would probably break the roads "all to pieces," Isaak said.

Area farmers and shippers want rail to run their product, Isaak said, noting that rail cars make dealing with a bulk commodity like wheat much easier. Each car holds a little over three semi-trucks worth of grain, he said, and the process of loading grain onto a semi-truck is "cumbersome," is Isaak's opinion.

"I think most people feel the trucks and rail will keep one another in line," Isaak said. "If it gets down to someone having a monopoly on the situation, we're at the mercy of whatever someone wants to charge us."

Ed McKechnie, chief commercial officer for Watco, echoed Isaak's sentiments, saying as soon as the railroad is gone, higher road maintenance costs and transportation costs would be the result.

"Truck rates would increase the next day," he said. "You will see money leave the economy of eastern Washington. That's a decision local people have to make. We can't make that for anybody."

McKechnie said the CW branch has been suffering from loss of carload volume in the past several years.

The Burlington Northern Santa Fe Railway put in a shuttle loader in Ritzville two years ago, and McKechnie said the rates to truck products from the shuttle loader in Ritzville to the coast are cheaper than the rate to use the rail from the line to the coast.

The east half of the railroad, in particular, has suffered a decline in volume.

"When you have 108 miles of railroad, it takes a significant volume of rail cars to keep that line operating," McKechnie said, explaining that the rule of thumb is about 50 rail cars per mile, but it also depends on the rate. "We just need more cars than what shippers can ship, because they're trucking it to Ritzville. What shippers are doing is, they're using us to reduce their shipping costs, but they want the railroad to stay in place to keep truck rates down. Once the railroad goes away, the next day, truck rates will go up just because of the market."

McKechnie said his company is awaiting a response from the state, having proposed several scenarios Watco has determined to be feasible and can work with.

"We've really seen a lack of commitment by the Department of Transportation to work in a positive way for this to be successful," he said, noting that the contentious issue is a "small" surcharge per car, around $225 to $250. "The shippers are not willing to either make a commitment on the volume to ship or pay a higher price. Since that's the case, they're not shipping. So that's where we're at."

The company is ready to sell the railroad and has priced it to the state, but McKechnie said the state wants to pay a reduced price for the line.

"We bought it, we own it, we know what the value of it is," McKechnie said of the railroad. "The state consistently wants to pay an amount lower than it's worth, and we don't think that's right."

If the railroad closes down, McKechnie said, it will lead to severe deterioration on local roads as grain is moved by truck in significantly higher volumes, primarily on secondary and county roads.

"Five years from now, you will see severe deterioration on the roads," he said. "Everyone will say, 'Geez, what happened here?' The public policy question is, do you want to pay a higher amount to maintain the roads or do you want to pay a smaller amount to maintain the railroad?"

Isaak agreed that additional trucks would only serve to enhance the problems of safety and congestion.

"Highway 17 is busy enough and has been identified as a safety problem already," he said. "I think when you understand the whole picture, the best thing is to keep the rail operation to move this product out of here."

[BoxcabE50]

If the railroad closes down, McKechnie said, it will lead to severe deterioration on local roads as grain is moved by truck in significantly higher volumes, primarily on secondary and county roads.

"Five years from now, you will see severe deterioration on the roads," he said. "Everyone will say, 'Geez, what happened here?' The public policy question is, do you want to pay a higher amount to maintain the roads or do you want to pay a smaller amount to maintain the railroad?"

Yup. Exactly as I predicted earlier. Typical Watco scheming for more money. And if they don't get it......

:thumbs_down:

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[SDP45]

State makes offer for rail line
Posted: Monday, May 22, 2006 - 03:56:24 pm PDT
By Matthew Weaver
Herald staff writer

Watco to make decision by May 26
COULEE CITY -- The state and area rail users alike are awaiting with bated breath a company's response to an offer to purchase part of a key rail line.

The state Legislature agreed in 2003 to buy and renovate three key sections of the Palouse River and Coulee City (PCC) Railroad from Kansas-based Watco Companies, Inc.

In November 2004, the state paid $6.5 million to buy the P&L Branch, which runs north and south between Marshall and Pullman, and the PV Hooper Branch, a line linking Hooper, Winona, Thornton, Colfax and Pullman.

But the state failed to purchase the 108-mile CW Branch, which runs between Coulee City and Cheney. The Legislature allocated $1.2 million for the line, and Watco and the state Department of Transportation had a verbal agreement on the sale of the branch, but no signed agreement. Watco is now asking for more money for the stretch and closed the line down in November 2005.

Earlier this week, the state made an offer to Watco to purchase the line, and Washington State Department of Transportation director of freight strategy and policy office Barbara Ivanov said a response is expected by the close of business May 26.

"It's very important in particular to the grain co-ops who have made capital investments on that line and seek to gain the most economic output from those investments," Ivanov explained of the CW Branch, adding many cooperative members are also growers.

Kevin Whitehall, general manager of Central Washington Grain Growers, said there are several important reasons to purchase the line and keep it in operation, including maintaining the infrastructure to move commodities to market.

"(It's a) competitive issue as far as growers having the option of going by rail or by truck," Whitehall said. "Once you lose rail, for example, we're at the mercy of one mode of transportation and sometimes that's not the best option to have for our members."

Whitehall added the wear and tear done to county and state highways over the years to come, if the rail line is not operational, will cost "way more" than the cost to purchase the line, according to several studies on the subject.

"Each study has indicated it is in taxpayers' best interest to purchase the lines to save the roads," Whitehall said, adding another issue is the question of safety with hundreds of trucks running up and down those roads. "Sooner or later, there's going to be some serious accidents and fatalities. It will happen."

Ivanov said that the state is still sorting out the importance of the line to the state, and said there are no clear policy directions on why short-line railroads are important to Washington.

"However, the state Legislature has very clearly instructed us to acquire not only the track and the track right-of-way, but the operating rights to run it," Ivanov said. "And they're doing that to serve their constituent base -- the grain co-ops and the members that they have."

Ivanov said the best case scenario will be if Watco accepts the offer, a deal is put in place and moves forward. "We have no desire for further litigation or lengthening the process in any way."

Ivanov said the state respects the fact that it needs to make economic sense for Watco to operate the line.

"Other than that, I certainly think that any operator on that line with the current business model might find similar issues," she said. "The fundamental business problem we're trying to sort out is new competition through the Ritzville shuttle loader, there's always the barge system that's very efficient and low cost. So the CW line, over the last three or four years, has been losing business to competition. That's the real issue. The fundamental problem there would exist no matter who the parties were."

The state is working to sort the issue out, Ivanov said, with the Legislature working to resolve the problem for constituents and shippers indicating their willingness to make a level of commitment to ship carloads by rail. The state is also working on how to get an operating plan in place to work long term for grain co-ops and their members.

Whitehall gave kudos to those legislators and lobbyists stepping up and making a stand for the shippers.

"A lot of this hit rather soon," he said, noting the issues essentially came up in December. If the shippers had not taken the charge and started working with area legislators, and if the legislators had not seen the same level of importance as the shippers, "we probably would not have the railroad. Once it's gone, you're never going to get it back."

[BoxcabE50]

I would wish that somehow the State had any sort of leverage. But doubt we could be so lucky. Let's hope Watco isn't too greedy. :angry:

:sad:

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[SDP45]

From the Capital Press:

A $4.16 million offer this month from the Washington State Department of
Transportation to buy Watco's remaining trackage and operating rights on the
Palouse Coulee City short-line railroad was dead on arrival.

"We told them the offer wasn't going to be acceptable. They offered
it anyway. We asked them why they would do that? What part of 'This
is not acceptable' don't you understand?" said Ed Mekechnie, vice
president of strategic development at Watco.

Barbara Ivanov, director of freight strategies and policies at
WSDOT, said the state is offering to pay Watco the highest of three
independent appraisals it received for the trackage and operating
rights not already purchased.

But Mekechnie said these "desktop evaluations" have fundamental flaws.

He said the appraisers valued the steel as scrap, but some of it is
of a higher quality called "re-roll" and other track is good enough
to re-lay directly. He compared the state's approach to making an
offer to buy every car on a used car lot for $100.

"Wash-Dot just can't bring themselves to be reasonable," Mekechnie
said, arguing that any agreement on the net liquidation value should
be part of a process that includes his company's input.

"They developed an NLV without any input and ¤ guess what? ¤ it is the
wrong number," he said. "Wash-Dot clearly doesn't want to get to yes."

Watco's NLV number is a little more than $5 million. WSDOT's is $2.93 million.
The $4.16 million offered by the state is not a straight exchange of cash.
Besides the liquidation value, it includes $324,000 for the operating rights on
the PV Hooper line, $290,000 for the right of way, track structure and operating
rights for spur tracks that connect shippers adjacent to the line, and $615,000
in transitional support to Watco to provide weekly service without surcharges on
the CW and P&L lines for 18 months beginning in July.

Although the company would continue to operate the short line under
contract within that specified period of time, Ivanov made it clear
the future beyond that would depend on the company's performance.

"The state would like to see high-quality rail service on the line.
Whoever is able to offer that, we'd be happy to work with them. It
is strictly a business decision," she said.

The state's offer for the short-line railroad is the latest strand
in a tangled web involving the 372-mile-long PCC system. Spanning a
large portion of Eastern Washington wheat country, the state owns
the P&L branch line from Marshall to Pullman with a spur from
Thornton to Hooper Junction and Winona. It was purchased for just
under $7 million.

The state was supposed to have purchased the CW line for $1.28 million, but
circumstances caused in part by a death in the office of freight strategy
derailed the deal. When the state came back to Watco, the business environment
had changed and the price had increased.

Hence the latest proposal. Ivanov said the Legislature is clear it
wants service restarted on the line.

"The Legislature's very clear directive was to get this sucker
going," she said. "That is certainly what we are attempting to do."

Ivanov said Watco could turn down the offer and make a counteroffer.
If it continues to pursue abandoning the line, however, the company
needs permission from the Surface Transportation Board.

"They cannot act without permission," she said. "The state would
have remedies, as would the shippers or any other interested parties."

[BoxcabE50]

Watco isn't making any friends here. There's a line of common sense they seem to have crossed. The State has been helpful to them in the past. (Are they biting a hand that's helped feed them?) In the future, they could find themselves up against it. Such as when working with STB to acquire, and that State bears witness against them.....

Their idea of a market for the used rail is dependent upon actually having a need/buyer out there. With so many miles of track coming up every day in this nation, is there really such a demand? If any, it's likely rather limited.

What a mess.

:(

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[Kevin M]

It sounds like both the state and WATCO are both being stupid. If WATCO said from the beggining that they wanted so much for the line I do not see why they should have to back down. Somewhere someone in WADOT is not getting the price thing through there head. I feel it wil be much cheaper for the state in the long run to buy the line for what WATCO wants and rebuild it then to see it ripped out and pay for the increased road mainitanece.
Kevin

[Kevin M]

I have been talking with some BNSF condutors who worked the CW branch when BN/BNSF still owned it and they are under the impression that BNSF should have to pay part or the reabilitation of the line since BN/BNSF pretty much ran the line into the ground with little maintance before selling it. They all siad they loved working the line during grain season because they were guarented 12 plus hours with pleanty of OT. This is just some of the feelings of some BNSF employees.
Kevin

[BoxcabE50]

If that line was "run into the ground," by BN/BNSF, thereafter, the latest occupant likely did nothing. Knowing them. A lot of the rail will not be useable as re-lay. Wear pattern, etc, won't mean a thing. The rails will be bent at joints or worse. Scrap.

I would like to see information on that line, about the rail itself. I have genuine doubts about how valuable it truly is, beyond scrap. What is the market and shipping cost, for lighter weight (alleged) re-lay rail? If there is really that much available for salvage.

:sad:

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[SDP45]

I think the WADOT did a study on the rail itself, as I recall a reference to it somewhere.

[SDP45]

By Matthew Weaver
Herald staff writer

Operator, state each reject purchase proposals
COLUMBIA BASIN -- Monday marked the date a response was requested for the latest offer in the continuing saga of a rail line marked as important by area shippers to move their product.

The state made an offer in May to Kansas-based Watco Companies, Inc., to purchase the last of three sections of the Palouse River and Coulee City (PCC) Railroad but Watco senior vice president Mark Blazer informed the negotiating team later that month his company did not accept the state's offer for the purchase of the 108-mile CW Branch line, which runs between Coulee City and Cheney. Watco also did not accept the state's offer for operating rights for the lines, spur tracks and right of way, according to an e-mail from the state's Office of Financial Management and Department of Transportation to interested recipients and stakeholders June 14.

According to the e-mail, Blazer didn't make a counter offer, but proposed that CW line customers make a minimum commitment of 3,180 carloads per year, and said Watco would be willing to work to reach an agreement to remove their embargo and restore service with reduced or removed surcharges by Aug. 7, with service to last for one year, if the state agreed to forgive Watco's outstanding loan of $442,000 and reimburse the company approximately $450,000 to upgrade the track and waive all state-mandated crossing, signing and other costs by May 31.

The company also asked that customers on the railroad's P&L line make a minimum commitment of 1,539 carloads per year, and the state forgive Watco's outstanding loan and funds track upgrades. Under these conditions Watco would be willing to reach an agreement to offer reduced or removed surcharges for one year. The P&L line runs north and south between Marshall and Pullman, and a third line, the PV Hooper line, links Hooper, Winona, Thornton, Colfax and Pullman.

The state responded last week with a rejection of the proposal, and offered in response an interim operating agreement, asking that PCC end the embargo and resume operations by Aug. 7, operating regular service for a period of one year, with PCC charging Burlington Northern Santa Fe Railway tariff rates with no additional charges.

The state would forgive the $442,000 loan, make and pay for necessary repairs of the CW line and be responsible for determining the necessary work and having the work performed in consultation with the PCC. Minimum carloads for the P&L line would be 1,250, and 2,600 on the CW line.

The second part of the state's offer is a purchase agreement in which Watco would agree to the sale of the PCC rail property, including the CW branch, and operating rights and related rail property for the P&L branch and the PV Hooper branch within the state.

The state received another response from Watco Monday rejecting its latest offer.

"Some things we are getting closer on, and some things are still a ways apart, but I think it's a positive direction," said Scott Witt, Washington State Department of Transportation freight multimodal program and policy manager. "We hope to consider their response and we're looking at some options at this point. At this point, I think we're starting to move forward a little bit, so I was encouraged by their response."

Witt said he thought Watco's willingness to consider some things will result in a shared feeling of willingness all around, and gave the negotiations a "little better tone." Prior to the response, Witt said they had been "fairly stressed," but he had hopes that the state and Watco were getting closer to an understanding.

The state Legislature agreed in 2003 to buy and renovate the sections of the PCC Railroad from Watco Companies, Inc.

In November 2004, the state paid $6.5 million to buy the P&L branch and the PV Hooper branch.

But the state failed to purchase the CW branch. Watco and the WSDOT had a verbal agreement on the sale of the branch, but no signed agreement. Watco closed the line down in November 2005.

[BoxcabE50]

According to the e-mail, Blazer didn't make a counter offer, but proposed that CW line customers make a minimum commitment of 3,180 carloads per year, and said Watco would be willing to work to reach an agreement to remove their embargo and restore service with reduced or removed surcharges by Aug. 7, with service to last for one year, if the state agreed to forgive Watco's outstanding loan of $442,000 and reimburse the company approximately $450,000 to upgrade the track and waive all state-mandated crossing, signing and other costs by May 31.

Here ya go. Exactly what I've been saying would happen. This is standard Watco operating procedure. Setting conditions. Or else....

Those guys are so predictable..........

:thumbs_down:

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[Kevin M]

Well they better do something with the branch soon. Parts of the line out by Cheney have become so overgrown in the last month that I can not see the tracks. Meanwhile they keep shoving more well cars up the line.
Kevin

[Kevin M]

While working the Lind turn yesterday we ran up the CW line for a little ways. We only went far enough to use the "Y" in Cheney but hey, now I can say I have operated on the CW. By the way PCC pulled a string of wells down the line yesterday and BNSF picked them up, word is BNSF has to have all of them off the line soon.
Kevin

[BoxcabE50]

....., word is BNSF has to have all of them off the line soon.

I wonder- What is Watco up to? Surely it won't be resuming operations of that line?

:sad:

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[Kevin M]

Well someone paid for the line to be sprayed for weeds last week....
Kevin

[BoxcabE50]

Watco had a weed sprayer where I live a couple weeks back. Maybe the same contractor. Some activity gives hope the CW will survive.

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[Kurt Moose]

Watco had a weed sprayer where I live a couple weeks back. Maybe the same contractor. Some activity gives hope the CW will survive.

Boxcab E50
Or sprucing up the place for sale? You think RailAmerica would be interested? They run over half the shortlines in the state right now. They seem to make a profit out of old lines.

[BoxcabE50]

Well, RA is willing to put a little bit of capital into an operation. Which Watco will not. So, if it did happen they'd attain ownership, things might be better. But I somewhat doubt it. The price tag is quite high at present. If the price of scrap dropped, they'd lose on investment big time.

Boxcab E50

[SDP45]

From another site:

Watco cancelled its embargo of the entire Cheney-Coulee City line effective 1PM on Friday the 14th. Coincidentally, the STB's ruling on the State of Washington's filed complaint regarding the legality of the embargo was anticipated today--7/17. The per-car surcharge remains in place, as does the State's pursuit of purchase.

[BoxcabE50]

I'd love to know if they did rule. And likely against Watco. Which I'd bet was a good part of why the the embargo was dropped. Now, I wonder how legitimate is the surcharge.....??? Will anyone even try to ship, under such conditions?

:sad:

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[SayNOtoWATCO]

Yeah, Watco is dishonest in dealing with the State of Washington. One one side of the fence they told the state (after getting a $400k loan for improvements) the line couldn't be profitable. So, they quoted the state a price for the line to let them run it.

Later, after it was determined that there was interest in keeping it running, they changed their price higher to the state (no contract). The state has made numerous offers. Each turned down by Watco.

They have a temporary agreement and are moving cars, but it IS temporary.

More here: www.watcocompanies.org