UTU Local 426 Archived News.
02/13/07
Washington State, Watco sign railroad purchase
agreement
FEBRUARY 12, 2007
OLYMPIA, Wash. - On Feb. 8 Washington Governor Chris Gregoire signed
a Memorandum of Understanding with Watco Companies for the purchase
of the CW (Central Washington) line of the Palouse River & Coulee
City Railroad. "Washington, for the first time, will become the
owner of a critical operating rail system that supports a large
portion of our agricultural community," Governor Gregoire said in a
statement released to the media. "If the Legislature had not stepped
up, if the farmers, Washington DOT and Watco had not all
participated in making this happen, this critical infrastructure
would be lost."
In 2005, Kansas-based Watco said it couldn't keep losing money on
parts of the system. The state committed to buying the tracks to
prevent them from being torn up. The Washington Department of
Transportation and Watco have been in negotiations for the last two
years regarding the acquisition of the CW line (see Trains News
Wire, Nov. 27, 2006). The Memorandum of Understanding represents the
successful conclusion of the negotiations.
The Palouse River & Coulee City (PCC) Railroad is comprised of three
branches: the P&L branch from Marshall to Pullman, the PV Hooper
branch from Hooper to Thornton and Pullman, and the CW line from
Coulee City to Cheney and Spokane. In 2004 the Washington Department
of Transportation purchased the right-of-way and rail for the P&L
branch and the PV Hooper branch. Northern Pacific and Union Pacific
once owned the branch lines.
According to the statement released by the Governor's office, the
purchase will provide agricultural and manufacturing communities
with options for shipping and receiving products by rail. Benefits
to Washington include lower shipping costs owing to greater
competition, additional jobs within the rail-dependent industries,
and a platform for possible future growth along the railroad.
Watco will continue to operate all three branches until May 31,
2007. It will continue as the operator of the PV Hooper branch as
long as the company meets the terms and conditions of the existing
operating agreement with Washington DOT. Current plans call for
operation of the P&L branch and the CW line to be advertised for
bids for an operator by Washington DOT so that service continues
beyond May 31, 2007.
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