(The following story by Adam Pearson appeared on the News Review website on December 14.)
ROSEBURG, Ore. — Shipments over the Siskiyou Pass on the Central Oregon & Pacific Railroad are going to get tighter in a few weeks.
The Roseburg-based railroad company announced to shippers Thursday that all California-bound traffic originating from Ashland or anywhere north of Ashland will instead be rerouted to Eugene, where it will head south to Klamath Falls on a Union Pacific line, effective Jan. 15, 2008.
“CORP has a business problem. We lose money operating over the Siskiyou Subdivision. In order to try to stem our losses we will be making several changes in our service offering,” states a letter sent to shippers.
However, the railroad will continue operating traffic over the Siskiyou Pass that originates or terminates in Weed, Calif., on a bi-weekly basis at least until April 15, 2008.
“We will seek some combination of higher prices and/or additional volume in an effort to achieve the necessary economics. If we are unable to secure the necessary economics to profitably operate the subdivision, we will discontinue the service,” the letter states. “The Siskiyou Subdivision is difficult, expensive terrain for rail operations. Shifting most of the traffic to the Eugene interchange and reducing our days of service will help us reduce our costs.”
Two weeks ago shippers on the CORP rail lines formed the Coos-Siskiyou Shippers Coalition, brought together mainly in response to the closed 120-mile spur between Eugene and Coquille in hopes of gaining leverage on decisions made by the railroad.
Bob Ragon, executive director of the Douglas Timber Operators and a member of the shippers coalition, said shippers are talking to Governor Kulongoski’s office and other elected officials to help bring together the railroad and the coalition at a table where a deal can be brokered for keeping all segments of the railroad in service.
Allyn Ford, chairman of the shippers coalition and president of Roseburg Forest Products, said last week that approximately 70 percent of wood products and other manufactured goods in southwest Oregon are shipped by rail.
The closure of the Siskiyou rail pass, however, is not expected to increase rates for shippers, the CORP said.
“In fact, their service may even get better,” said Tom Hawksworth, manager of marketing and sales for the CORP.
Union Pacific told the CORP that rates will stay the same for the Eugene interchange, Hawksworth said.
Hawksworth also said that more cars can be sent at a time on the Union Pacific line and avoid delays often experienced at an interchange in Black Butte, Calif.
“They could see better overall transit time going to Eugene than to Black Butte,” Hawksworth said.
The Coos-Siskiyou Shippers Coalition had expressed concern for rail traffic increasing in Roseburg if interchanges had to be made in Eugene.
Hawksworth said it should increase by about 30 cars a day. The rail line normally handles about 100 cars a day, he said.
The CORP was supposed to build a new switching yard in Winchester to decrease traffic in Roseburg. But a $7.7 million grant it had been awarded by the Oregon Department of Transportation was suspended when the rail company shut down the Coos Bay line.
In a November meeting, officials from CORP’s parent company, RailAmerica in Boca Raton, Fla., said it would cost $23 million to repair and reopen the Coos Bay line. RailAmerica asked public and private entities to share in the cost, saying it will put up $4.66 million if four other entities chip in.
In addition, RailAmerica asked for $10 million in state subsidies over five years to cover $1.5 million it says it will lose in annual operating costs on the line.
Ragon said the CORP’s announcement that it will discontinue service April 15 over the Siskiyou Pass if the line is not economically viable means shippers should not be surprised when that happens.
“I think it will be up to the taxpayers of Oregon to pick up the pieces,” Ragon said.