1. Burninbob

    Burninbob TrainBoard Member

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    This Story Ran 7/25/08
    on KQEN Radio
    Roseburg, Oregon

    Governor Ted Kulongoski has added his letter to the list of requests
    filed with the Surface Transportation Board for a hearing in Oregon on railroad issues.
    Letters have been filed by Congressman Peter DeFazio, Senators Gordon Smith and Ron Wyden, State Representative Susan Morgan and businessman Allan Ford.
    Congressman Defazio is the only one to specify Eugene as the location to hold the hearings.
    Central Oregon & Pacific Railroad filed the formal abandonment application last month. The railroad closed the Coos Bay Branch Line last year with only a days notice to shippers on September 21st citing safety concerns with three bad tunnels.
    If the hearings are held in Oregon, shippers, businesses, political leaders and the general public could have a opportunity to express their views about the abandonment of the branch line.
    The STB has yet to consider the CORP abandonment application and the Port of Coos Bay’s application to force the sale of the Coos Bay Branch line.
     
  2. BarstowRick

    BarstowRick TrainBoard Supporter

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    I'm not sure what to make of this.

    It boils down to the bottom line...profit and loss. The line needs to generate enough income to keep the track in proper maintenance and tunnels repaired and motive power rolling. Never mind the payroll and benefits.

    Unable to meet the basic's and closure becomes the only option. You can't keep a spur line open just to please the public, shippers and rail fans. One hopefull consideration; Should the states, the line serves, consider the line useful for future industrial growth they might consider acquiring it. I just don't see that happening.

    It is what it is!
     
  3. YoHo

    YoHo TrainBoard Supporter

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    Well, the State(Port of Coos Bay) is considering Acquiring. That's the point of the hearing.
    In general, CORP and it's parent just handled this extremely poorly. Not very smart on their part at all. Other RR have expressed interest in running the line for the Port, so someone thinks it's of value.
     
  4. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Yes. It was all handled very poorly.

    At this point in time, there's more to it than looking at present circumstances. As much as I'd like to see a private sector success, rather than government ownership, the future is in play here. Better to keep and upgrade the present entity, than to tear it out, and later go through the time consuming and extremely costly process of starting all over, from square one to build anew.

    And, if the line is brought back up, who knows what doors might open thereafter?

    Boxcab E50
     
  5. Burninbob

    Burninbob TrainBoard Member

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    The Port of Coos Bay has filed a Feeder Line Application to force the sale of the entire Coos Bay Branch line. They have a 12.5 Million Dollar Line of Credit from Umpqua Bank in Roseburg, Oregon. Four of the shippers along that rail line have submitted Information that they will each back up the repayment of the 12.5 Million Dollar l;ine of credit. The State of Oregon and the Oregon Department of Transportation has transfered from the Oregon State "Coos Bay Rail Bridge Repair Fund" 4 Million Dollars and Congressman Peter DeFazio has put in an amendment to transfer 8 Million Dollars from the Federal "Coos Bay Bridge Repair Fund". in all there is 24.5 Million Dollars for the operation and purchase. The "Feeder Line Application" was filed just days before CORP filled its "Abandonment Application". According to the STB you can't have two applications like this running at the same time. STB should decide if they will accept or reject one of those applications soon.
     
  6. Burninbob

    Burninbob TrainBoard Member

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    Coos Bay Branch Line




    After hearing from Oregon’s Congressional Delegation, local elected officials and business owners, the Surface Transportation Board has announced a field hearing in Oregon on CORP’s proposed abandonment of the Coos Bay line.
    A statement released by the STB says, “Because this proceeding involves issues of significant importance to the people of Oregon, the Board will grant the requests for a public hearing to be held in Oregon. The time and location will be determined by Board order that is expected to be issued on August 1, 2008."
    Allyn Ford, President of Roseburg Forest Products and Chairman of the Coos-Siskiyou Shippers Coalition, started a wave of requests for such a hearing last week. Soon after, letters echoing Ford’s request came from Senators Ron Wyden and Gordon Smith, Representative Peter DeFazio, Governor Ted Kulongoski and several state lawmakers.
    Each letter had a common point: members of the Surface Transportation Board need to hear directly from those impacted by the embargo and abandonment of the line between Eugene and Coos Bay.
    The Central Oregon and Pacific Railroad and its parent company, Rail America, closed down the line over safety concerns with one days’ notice last September. Since then, shippers along the line have faced sharp increases in shipping costs. RailAmerica officials claim to have tried to enter into a mutual agreement to restore service on the line, to no avail.
     
  7. friscobob

    friscobob Staff Member

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    Then things aren't as cut & dried as RailGenerica want them to be........good. Let's hope the hearings go well.
     
  8. Burninbob

    Burninbob TrainBoard Member

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    Coos Bay Rail Line


    The Surface Transportation Board in Washington, D.C. has formally accepted the International Port of Coos Bay “Feeder Line Application" to force the sale of the Coos Bay Rail Line.
    The STB had 30 days after the Juky 11th filing date to decide to accept or reject the Ports application.
    With the STB acceptance the next step has been put in motion to set a procedural schedule.
    Competing applications from other parties seeking to acquire the Coos Bay Branch Line now have until August 8th to file a application.
    The Port is also required by August 8th to submit additional information with the STB on their proposed operation of the line..
    The STB has also just accepted the CORP application to abandon the Coos Bay Rail Line.
    Lastly the STB granted requests for a public hearing in Oregon on the abandonment proceedings on July 29th. The STB has selected August 21st for the hearing and Eugene was picked as the location.
    With both pending applications the STB will let interested parties address issues relevant to both proceedings at the Eugene hearing.
    Details about the public hearing, including how to participate will be issued in a separate STB decision later today.
     
  9. Burninbob

    Burninbob TrainBoard Member

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    This Just Came in about the Eugene STB Hearing:

    The Surface Transportation Board in Washington D.C. has set the stage for an Oregon hearing.
    Today the STB set a hearing for August 21st at 9:30AM in Eugene at the Wayne L. Morse U.S. Courthouse in Room 2200 on rail issues concerning the Central Oregon & Pacific Railroad.
    The hearing was requested by Oregon’s Congressional Delegation, Senators Ron Wyden and Gordon Smith and key business leaders.
    The STB will allow interested parties to address issues concerning not only the pending abandonment application but the Port of Coos Bay’s “Feeder Line Application” that will force the sale of the Coos Bay Branch Line.
    Earlier today the STB formally accepted both applications setting the stage for scheduled deadlines for submissions.
    A final decision on both applications could be as early as this fall.
     
  10. Burninbob

    Burninbob TrainBoard Member

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    RailAmerica Reaction to Oregon Hearing

    The Senior Vice President of Rail America says the company is looking forward to a resolution on the CORP rail line from the Surface Transportation Board.
    Scott Williams, who also serves as general counsel for RailAmerica, says the STBs deadline of October 31st sounds like good news.
    On Friday, the STB made announcements regarding several aspects of the CORP line to the coast.
    The STB has announced it will come to Eugene August 21st for a field hearing on both the abandonment application from Rail America and the feeder line application submitted by the International Port of Coos Bay.
    The meeting is great news for supporters of a new operator on the line, but Williams isnt sure the hearing will be valuable to Rail America.
    Williams says Rail America officials will send a representative and they do anticipate some criticism.
    Williams says they will spend time answering many of the critical comments at the Oregon hearing, just as they did during an STB hearing on common carrier obligation in Washington DC.
    He says they have tried their best to run the CORP line to Coos Bay as well as they could without running a huge ecomonic loss.

    Williams may be right to be concerned about the hearing turning into a political sounding board. Martin Callory of the International Port of Coos Bay talked about the benefits of the hearing on Friday.
    Callory says the hearing will allow the public the chance to describe the impact the embargo and closure of the CORP line has had on shippers and specifically the forest products industry.
    According to Martin Callory, the International Port of Coos Bay will explore every available option to acquire the line and will operate the line if necessary.
     
  11. Burninbob

    Burninbob TrainBoard Member

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    STB Hearing in Eugene, Oregon


    Interest is picking up rapidly in the Surface Transportation Board field hearing in Eugene.
    The Hearing on August 21st will be about Central Oregon & Pacific Railroads abandonment application on the Coos Bay rail line and The International Port of Coos Bay’s “Feeder Line Application” to force the sale of the line.
    So far U.S. Senator Gordon Smith, Congressman Peter DeFazio, Governor Ted Kulongoski, Representative Bruce Hanna and Susan Morgan have filed a request to speak at the hearing.
    Other notable speakers will be Douglas County Commissioner
    Doug Robertson and representatives from The Port of Umpqua, The Coquille Indian Tribe, City of Coos Bay and Lane County.
    Major shippers will be represented by the Allan Ford from the
    Coos-Siskiyou Shippers Coalition, American Bridge Company and
    South Port Forest Products.
    Central Oregon & Pacific Railroad will represented by Paul Lundberg, Senior Vice President of Strategic Relations for RailAmerica.
    A final list of all the participants will be released by the STB on August 18th.
     
  12. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Are these particular proceedings ever made available to the public, via video?

    Boxcab E50
     
  13. Burninbob

    Burninbob TrainBoard Member

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    The Common Carrier hearing was made available to the public and should be on the STB web site. The Eugene hearing will be open to the public, limited seating and ID checks at the Federal Courthouse. TV coverage or radio coverage will not be avail.
    I'll try to relay info here.
     
  14. Burninbob

    Burninbob TrainBoard Member

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    STB Eugene, Oregon Hearing



    The Surface Transportation Board has released the list of individuals that will testify at the Eugene, Oregon field hearing.
    The Board is holding the field hearing in Eugene to allow interested parties to comment on pending railroad applications.
    Central Oregon and Pacific Railroad filed an application with the Board to abandon the Coos Bay Rail Line. Just days before the CORP application the International Port of Coos Bay filed a Feeder Line Application to force the sale of the same line.
    The hearing will be held at the Federal Courthouse in Eugene
    Thursday starting at 9:30 in the morning.
    More than 40 individuals came forward and asked to testify about both applications.
    The first to testify on Thursday will be Governor Ted Kulongoski and Congressman Peter DeFazio. Paul Lundberg from RailAmerica will represent CORP. They will get 15 minutes each in front of the Board, the rest will be allocated 5 minutes each.
    From the business community, The Coos Siskiyou Shippers Coalition will be represented by Roseburg Forest Products CEO Allan Ford and Transportation Manager for RFP, Andy Jeffers.
    Douglas County Commissioner Doug Robertson will also address the board.
    Both applications are still pending and are going thru many levels of review.
    A final decision on the outcome of both applications are expected by the end of October.
     
  15. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    The weeks are flying by.... Soon will come another winter of disuse, and no upkeep. Thus, more damage is a good possibility.

    Boxcab E50
     
  16. Burninbob

    Burninbob TrainBoard Member

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    Coos Bay Rail Line

    Here is an Editorial I found yesterday about CORP:

    Editorial: Central Oregon & Pacific Railroad
    Published Yesterday August 19th in the
    Roseburg News Review:






    How many years has it been since America’s railroads were a source of national pride, a symbol of adventure, travel, power and punctuality?

    Reduced to slow-rolling billboards for gangs while hauling the most pedestrian of loads might have been their ultimate insult, but it wasn’t. Now, the rail line from Coos Bay doesn’t merit even that low attention.

    For nearly a year the train hasn’t shuffled down those tracks. Central Oregon & Pacific Railroad (CORP), recognizing that years of deterioration had resulted in serious safety hazards, especially in tunnels, closed the line. The abrupt closure disrupted shipping from local timber operations, and others such as American Bridge.

    That may not mean as much to people and businesses who did not rely upon the railroad, but for those who do, especially in these days of high fuel costs, the closure was enormously detrimental. For timber-dependent communities in the area already struggling with employment and economic issues, this has been particularly stressful.

    While hordes of semitrucks add to the cost and demand issues associated with petroleum products, adverse environmental impact, and diminished life span of our highways, it is difficult to justify the continued neglect of our rail lines.

    A group of rail users formed the Coos-Siskiyou Shippers Coalition to protest the closure of the local line and to seek a solution. During the past several months Sens. Ron Wyden and Gordon Smith, Rep. Peter DeFazio, and Gov. Ted Kulongoski have all been involved in attempts to find resolution to this multimillion dollar dilemma.

    The saga of contentious debates, proposals and counterproposals have been regularly reported in The News-Review. A search of nrtoday.com will provide interested readers with the background.

    The governing federal Surface Transportation Board will focus on this issue when it comes to Eugene Aug. 21 to take testimony on applications by the Central Oregon & Pacific Railroad to abandon its Coos Bay line and by the Oregon International Port of Coos Bay to take it over.

    Among the issues complicating the resolution of this matter is CORP’s intention to abandon only 94 miles of the line and simultaneously discontinue service on 22 miles of track between Coos Bay and Coquille that it leases from Union Pacific and another two miles near Gardiner leased from the Longview Portland and Northern Railway Co.

    The hearings, which would have been held in Washington, D.C., will be held at the Wayne L. Morse U.S. Courthouse, 405 E. Eighth Ave., in Eugene. The hearing on the applications will take place beginning at 9:30 a.m. in Room 2200.

    We appreciate the board’s willingness to make it easier for people in rural Oregon, who are most affected by this loss of critical service, to participate in securing resolution.

    The deadline for people wishing to address the board has passed but we expect to see good representation from the many people who have been involved in this issue so critical to our community.
     
    Last edited by a moderator: Aug 20, 2008
  17. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Well, nicely written.

    I especially thought those first two comments were interesting.

    Boxcab E50
     
  18. Burninbob

    Burninbob TrainBoard Member

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    STB HEARING IN EUGENE: UPDATE

    Its been exactly 11 months since RailAmerica ordered the Central Oregon and Pacific Railroad to cease operations on the Coos Bay Branch Line. Today in Eugene, local business and political leaders get the chance to tell the Surface Transportation Board how the embargo has affected them.
    The STB field hearing begins at 9:30 this morning at the Federal Courthouse in Eugene. Governor Kulongoski and Representative Peter DeFazio will each have 15 minutes to address the board.
    Then, state lawmakers, local politicians and business leaders will each have 5 minutes at the stand. That list includes State Representatives Susan Morgan and Bruce Hanna and Senators Jeff Kruse, Floyd Prozanski and Joann Verger.
    Two Lane County Commissioners will have time to address the board. So too will Douglas County Commissioner Doug Robertson and John Griffith of Coos County.
    The Coos-Siskiyou Shippers Coalition will be represented by RFP President Allyn Ford and Andy Jeffers. American Bridge General Manager Fred Jacquot is also scheduled to speak.
    And Rail America Senior Vice President Paul Lundberg will be given 15 minutes in front of the board today.


    Today’s hearing will focus on two issues.
    The first is in regards to CORP’s abandonment and discontinuation of services on the Coos Bay Line. The second topic speakers can address is the feeder line application filed by the International Port of Coos Bay in an attempt to take over the line.
    Officials say without support for the Port to take over the line, CORP’s parent company, RailAmerica would be able to sell property along the line, disassemble the line and sell the scrap material for millions.
    By convincing the STB that the line is crucial for businesses and the economy of Oregon, supporters of the Port application might be able to force the sale of the line to the Port and stop the abandonment of the line.



    Just ahead of today’s hearing, Oregon Senator Ron Wyden is calling on the STB to quote ‘rein in the abuse’ of CORP and approve the Port’s request to take over the line.
    Wyden is not on the scheduled list of speakers for today’s hearing, but presented comments to the Surface Transportation Board that said many railroads are generating record profits, re-investing in infrastructure and are doing an excellent job of serving the American economy.
    But, Wyden says in Oregon, quote “we’ve suffered as CORP has attempted to embargo and abandon lines and reduce and restrict service.”
    Wyden says CORP seems motivated by spite and profit than by a sense of obligation to the people of Oregon.
    Wyden’s letter adds, quote “No shipper, no business, and no family should suffer because CORP and its parent companies made a deliberate decision to fail.”
    The Senator supports the Port’s effort to purchase and, if necessary, operate the line.

     
  19. Burninbob

    Burninbob TrainBoard Member

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    A steady stream of support for a change in ownership of the Coos Bay Branch Line came from 48 speakers during yesterday’s Surface Transportation Board field hearing in Eugene.
    During six hours of testimony, the message to the STB was loud and clear:
    Do not allow Rail America to abandon the rail line to the coast.
    Do allow the International Port of Coos Bay to purchase the line.
    Roseburg Forest Products President Allyn Ford said he appreciated the way Oregon’s business and political community reacted to yesterday’s opportunity.
    Ford said much of the testimony focused on Rail America and CORP doing a poor job of handling the embargo and sudden closure of the line.
    Ford says Rail America officials probably came out of the meeting somewhat disappointed and went into the meeting ‘painted into a corner’ because of the public support for getting the line operational again.
    Even in a best-case scenario, Allyn Ford thinks it will take about a year before rail traffic flows on the line again.
     
  20. Burninbob

    Burninbob TrainBoard Member

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    This story was Published by the "News Review", "Eugene Register-Guard" and the "Associated Press".

    Gov. Ted Kulongoski asked the federal Surface Transportation Board to let the Port of Coos Bay buy a rail line that runs from Eugene to Coquille, saying its shutdown has caused "great economic uncertainty" for businesses in southwestern Oregon.
    He called on the board to reject the application from Roseburg-based Central Oregon & Pacific Railroad and its corporate parent to abandon the line except for a 25-mile segment.
    The Surface Transportation Board is based in Washington D.C., but agreed to hold a hearing in Oregon because of the heavy interest. Two of the board's three members attended Thursday's hearing that lasted six hours and included almost 50 speakers.
    The Port of Coos Bay wants the government to force the railroad and its Florida-based owner, RailAmerica, to sell the line for $9.8 million.
    CORP abruptly closed the line for safety reasons last September, seeks to abandon the line, rip up the railroad, sell the track as scrap metal or reuse it in other operations, and then sell the real estate to the highest bidder.
    Without the line, some coastal businesses have resorted to trucks for shipping, and that's been driving up costs.
    In his testimony, Kulongoski mentioned the plight of American Bridge, which has its West Coast headquarters on Bolon Island between Reedsport and Gardiner. The company has lost business because its large bridge components can only be shipped by rail.
    He also noted that Southport Lumber invested in a new facility at Coos Bay because of the diverse transportation options, including rail. Its monthly transportation costs have soared since the shutdown.
    "RailAmerica must not be allowed to neglect a line, hold communities for ransom for repair and if they don't pay up, then overprice it and sell it for scrap. This is not fair," Kulongoski said.
    The board is expected to make a decision before the end of November.
    U.S. Rep. Peter DeFazio, D-Ore., criticized RailAmerica for failing to spend enough money to ensure the continued safe operation of the line during more than 10 years of ownership.
    But Paul Lundberg, a RailAmerica vice president, disputed DeFazio's characterization. For the past several years, CORP invested 28 percent of its gross revenues in infrastructure improvements. The national average, he said, is 13 percent.
    "It's not a lack of investment in the asset that has caused the problems," Lundberg said.
    After the line was shut down, CORP sought a partnership with the state, the Coos Bay port, shippers and the Union Pacific to share in the $23 million cost it said was needed to make repairs and get the line operational. It also sought a shipping surcharge and an ongoing subsidy from the state.
    Kulongoski at the time said the railroad would have to make the repairs and reopen the line before the state would consider providing any financial assistance.
    ---
     

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