(The Associated Press circulated the following on October 23.)
COOS BAY, Ore. — The Oregon International Port of Coos Bay has filed a $15 million lawsuit against a railroad that closed a short line spur on its route from Eugene to Coquille.
The complaint filed in U.S. District Court contends the Central Oregon and Pacific Railroad failed to provide the required 180 days notice that it would shut down a leased spur to the bay’s North Spit.
It also says the railroad is required by the lease governing the Coos Bay Railroad Bridge to get the Port’s written agreement before suspending or ending operations.
The railroad says three of the nine tunnels on the 120-mile line pose a safety risk to workers, and there isn’t enough traffic to warrant repairs. It abruptly closed the line Sept. 21. The action has affected at least four major employers on the coast, forcing some shipments to go by truck.
Scott Williams, general counsel of CORP’s parent company, RailAmerica, told The World newspaper of Coos Bay the railroad still is weighing its options. “I’m not going to respond in the news media,” he said.
The rail spur cost almost $5 million. The port took out a $1.2 million loan for construction and still owes $886,000 on it, according to its finance director, Donna Nichols.