Home Back Issues August 2010 Coos Bay rail brings opportunity

Coos Bay rail brings opportunity

| Print |  Email
Articles - August 2010
Wednesday, July 21, 2010
0810_ATS10
Union Pacific Railroad is donating a 22-mile section of rail line to the Coos Bay port. The track was previously used by Central Oregon & Pacific Railroad. // PHOTO COURTESY OF UNION PACIFIC
The final acquisition of an important rail segment has given the International Port of Coos Bay a chance at economic stability.

Union Pacific Railroad and the port are nearing a deal for a 22-mile stretch of railroad that runs from the north spit of lower Coos Bay to Coquille. The railroad company will donate the stretch, except for a small profitable portion that Coos Bay will have to buy from UP for an undisclosed price. In March 2009 the port bought a sizable chunk of rail line that runs from west Eugene to the north spit of lower Coos Bay for $16.6 million. The 22-mile stretch will add to this segment, which is isolated from other UP-owned lines and not financially viable to UP, but vital for businesses with direct access.

Companies such as Oregon Resources Corporation, Georgia-Pacific and Roseburg Forest Products depend on rail to ship product. About 300 jobs disappeared in 2007 from companies that used the line when service was discontinued from Eugene to Coquille. American Bridge went from 65 to 19 jobs and doubled its transportation costs. Roseburg Forest Product’s Coquille-based plywood mill employs several hundred people. Without rail service the company would consider moving that production to other mills in Dillard and Riddle because the company spends 10% to 15% more on land transportation in the current location. The port also hopes a strong rail line will lure international investors that depend on rail to ship their products coast to coast.

“Mills are in danger without the railroad,” says Bob Ragon, spokesman for Coos Siskiyou Shippers Coalition.

Every added rail car represents revenue for Coos Bay, which gets a percentage of the original shipping rate. The port initially will add tariffs to cover operation costs.

“When you are in the manufacturing business you need competitive transportation options,” says Martin Callery, the port’s director of communications and freight mobility.

JOSEY BARTLETT
 

Comments   

 
Scott Cantonwine
-1 #1 One-sided representationScott Cantonwine 2010-08-10 15:06:55
This story leaves out a number of key facts, chiefly that these jobs were lost on account of market dynamics, not the absence of this rail service. Many private firms have explored the rehabilitation of this line, but only after heavy state and federal subsidies does this "pencil out" -- or does it? Without an ongoing "allowance" from Big Brother, this line simply will not be a viable commercial concern. Given the financial affairs of our state and federal governments, however, one should immediately scrutinize their notion of solvent project or good idea.
Quote | Report to administrator
 
 
Alan Miller
+1 #2 The "One-sided Representation" email is correct because . . .Alan Miller 2010-08-11 01:41:14
Rail lines cost taxpayer money, but roads and road maintenance are all paid for by God.
Quote | Report to administrator
 

More Articles

Green Your Workplace seminar held at Nines Hotel

News
Wednesday, May 28, 2014

GreenYourWorkplacelogoOBMOregon Business magazine's  "Green Your Workplace" seminar featured a panel of sustainability experts from small, medium and large organizations. The seminar drew 70 people and took place in the Nines Hotel this morning.


Read more...

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

Hipsters gone wild

June 2014
Thursday, May 29, 2014
BY JON BELL

A new generation of outdoor apparel companies targets the young and the urban.


Read more...

Liquid gold

June 2014
Thursday, May 29, 2014
BY JENNIFER MARGULIS

Don Gentry navigates Klamath Basin water rights.


Read more...

100 Best Green Companies Keynote Speech

News
Friday, May 30, 2014

green2014-069Watch the 2014 100 Best Green Companies keynote speech by Eric Friedenwald-Fishman.


Read more...

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex fast changing business environment. 

Update: We checked in with Portland's Thomas Thurston, who offers his data driven take on the disruption controversy.


Read more...

Oversight? Or gaming the system?

News
Monday, July 14, 2014
AmazonBY VIVIAN MCINERNY | OB BLOGGER

Some people think Amazon’s winking eye logo is starting to look like a hoodwink.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS