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.