Governor Testifies at Surface Transportation Board Hearing

Statement

Governor Testifies at Surface Transportation Board Hearing

Governor urges board to reject abandonment of the rail line owned by RailAmerica and accept Port of Coos Bay proposal to purchase the line

Governor Ted Kulongoski today testified to the federal Surface Transportation Board urging the board to reject the proposal from RailAmerica to abandon a portion of the Central Oregon and Pacific Railroad (CORP) Coos Bay rail line. He also urged the board to accept a proposal by the Port of Coos Bay to purchase the line to prevent economic hardship for Coos Bay and the surrounding communities.

"The sudden shutdown of the Coos Bay line of the CORP railroad by RailAmerica has created great uncertainty for companies in this region," Governor Kulongoski said.

"This uncertainty cannot continue - and the answer is that rail service must be restored. To do anything less is unfair and unjust for the citizens in this community who rely on this railroad to provide for themselves and their families."

The rail line was abruptly closed in September 2007 by RailAmerica who cited safety concerns due to deteriorating tunnel conditions. The repair costs were estimated to be $2.9 million by RailAmerica, but the company asked for over $18 million from the state and local communities to fix their railroad, along with $16 million in future funding to help with operating costs and to continue capital improvements to the line.

In attempt to get the line operational again, the Governor offered to help develop a long-term solution if RailAmerica would repair the tunnels and get freight moving. RailAmerica rejected that offer. In response to the abandonment effort, the Port of Coos Bay has submitted a proposal to purchase the line and keep it open.

"After many attempts by the state to be a partner, it is my opinion that the only option for the board at this time is to adopt the Port of Coos Bay feeder line application," Governor Kulongoski said. "This solution is the right thing to do on behalf of the employees, the businesses and the community."

In closing, the Governor asked the Surface Transportation Board to use its position to help develop a national policy that protects transportation infrastructure to rural communities, citing the importance of railroads in particular.

"At some point, providing infrastructure for rural America cannot be just a bottom-line accounting decision. Otherwise, small economic regions like the southern Oregon coast will become more isolated and economically unstable," the Governor said. "This isn't good for our state or our country. With your help, we can create a national transportation policy that ensures connectivity of our transportation needs to every corner of our nation."

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