(The Associated Press issued the following on November 12.)
EUGENE, Ore. — Central Oregon & Pacific Railroad could lose a $7.7 million grant for a new rail yard in Winchester because the railroad shut down a 111-mile line between Eugene and Coos Bay.
The grant was the largest among the $104 million in ConnectOregon grants approved for 44 projects statewide in July 2006 to improve transportation infrastructure while increasing jobs.
Central Oregon & Pacific planned to use the yard to shorten trains from up to 120 cars to up to 60, reducing the wait for motorists at railroad crossings in Roseburg.
Relations between the railroad and the state have been strained over the closure of the Coos Bay line. A state panel is to vote Thursday on rescinding the grant.