On September 21, 2007, rail service on the Coos Bay
rail line, then owned and operated by the Central
Oregon & Pacific (CORP) Railroad was embargoed from
Vaughn in Lane County to the North Spit of lower
Coos Bay. The embargo impacted Georgia-Pacific and
several other rail shippers in the bay area.
Additionally, CORP discontinued service on rail
spurs serving Roseburg Forest Products in Coquille,
Southport Forest Products on the North Spit, and
American Bridge on Bolon Island near Reedsport.
CORP cited safety concerns in three tunnels on the
line as the primary reason for the embargo, and
later commented and confirmed that the line also had
a backlog of deferred maintenance. The loss of
freight rail service forced commodity shippers on
the line to shift to trucking at much higher costs.
The
Port, acting in the best interests of the south
coast communities and companies served by the rail
line, took action at the direction of the Port’s
Board of Commissioners and moved ahead with
acquisition of the rail line through a Feeder Line
Application (FLA) action before the U.S. Surface
Transportation Board. Financing of the acquisition
was supported by a loan package administered by the
Oregon Economic & Community Development Department.
At the time the FLA was filed, CORP also sought
abandonment of the Coos Bay line. Granting of
abandonment action could have resulted in loss of
the rail corridor between Eugene and Coos County.
The Port finalized the acquisition of the 111 miles
of the CORP Coos Bay line in mid March 2009, and
immediately applied for federal stimulus funding
available through the American Recovery and
Reinvestment Act (ARRA). The Port was successful in
acquiring a $2.5 million grant award which will be
used for initial tunnel rehabilitation. The First
Notice of Invitation to Bid was advertised on May
20th and an Addendum was advertised on May 26th. A
bid award for tunnel maintenance and rehabilitation
is scheduled for mid June, with work commencing in
early July. Port staff is pursuing additional
federal and state funding for continued
rehabilitation of the Coos Bay line. This will
include work on bridges and trestles,
rail/ties/ballast, signals and other rail corridor
needs.
Once the rail line is rehabilitated the Port will
seek a reputable and reliable shortline railroad
operator for either a rail line lease or a contract
operation. The Port will also seek to acquire
additional trackage in the Coos County area to
consolidate rail operations in the region. The
proposed operating name for the rail line is Coos
Bay Rail Link. An application for a Reporting Mark
of CBR is pending with the American Association of
Railroads.
Restoration of freight rail service on the Coos Bay
rail line is essential for future diversification of
the cargoes moving through the Coos Bay harbor and
for support of existing and future industrial
operations and corresponding job retention and
creation in the south coast region.