(The following appeared on the Mail Tribune website on May 13.)
MEDFORD, Ore. — RailAmerica said in a response posted on the Surface Transportation Board Web site on Monday, that it will seek to abandon its Coos Bay Line between Coquille and Eugene.
The Florida-based parent of the Central Oregon & Pacific Railroad said responses from Gov. Ted Kulongoski, private shippers and Union Pacific left it little choice but to abandon the line.
“Upon assessing these reactions to our efforts to build a coalition to address the long-term viability of the Coos Bay Line — and, in particular, after seeing both the state of Oregon and (Union Pacific) unequivocally reject our proposals — CORP made a decision following (April 24-25) hearings to seek to abandon the Coos Bay Line,” RailAmerica said. “….We have instructed our counsel to file the required notice of abandonment and a formal application seeking authority to abandon the Coos Bay Line at the earliest time permitted under the (Surface Transportation) Board’s regulations.
“While CORP remains willing to work with interested stakeholders to discuss solutions that would permit continued operation of the Coos Bay Line, we simply cannot justify investing many millions of dollars to rehabilitate a line that shows little if any prospect for returning to profitability.”
RailAmerica said it was losing $1 million annually on the line. The company also has reduced service and sharply increased its charges for shipping on its rail lines between Ashland and Northern California.