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Monday, December 21, 2009

Delegation seeks push on Siskiyou rail decision


John Sowell
The News-Review

Members of Oregon's congressional delegation are pushing the federal Surface Transportation Board to render a decision over a request to allow Yreka Western Railroad Co. to take over operation of the Siskiyou rail line between Dillard and Black Butte, Calif.


U.S. Sens. Ron Wyden and Jeff Merkley and Rep. Peter DeFazio sent a letter last week to Daniel Elliott, the new chairman of the three-member board, asking for his help in bringing to a vote the issue over the operation of the 218-mile line.


Two years ago, Roseburg-based Central Oregon & Pacific Railroad curtailed southbound service between Ashland and Weed, Calif., and cut northbound service from five or six days a week to two. Shippers claimed the railroad deliberately downgraded service on the line by limiting service and raising rates. The railroad said the cutbacks reflected lower demand on the line and that it was willing to provide service over the Siskiyou Mountains, but only if it received a fair price.


A year ago, the Coos-Siskiyou Shippers Coalition petitioned the Surface Transportation Board to allow Yreka Western to take over the line. In March, the board said the coalition hadn't proven that rail service was “inadequate” under federal law. It asked for additional information.“It has been nearly nine months since the coalition submitted the requisite information to demonstrate the inadequacy of that service,” Wyden, Merkley and DeFazio wrote. “We urge you to move as quickly as possible to rule fairly on the Coos-Siskiyou Shippers Coalition's petition.” The lawmakers noted that the change in service forced shippers along the line to switch from rail transportation to more expensive trucking. “Reliable and affordable railroad service is critical to the well-being of rural business and economies in Oregon. Often rail is the only affordable transportation option for timber, manufacturing and industrial businesses in our state,” they wrote.


Bob Ragon, spokesman for the shippers coalition, said he was pleased with the congressional push.“We've had no indication of where they are with reviewing our request and issuing a decision, so we're happy our congressional delegation sent the letter,” Ragon said. Dave Arganbright, an assistant vice president for CORP parent RailAmerica, declined comment on the letter.However, he said that after the shippers coalition petitioned for alternate service, CORP volunteered to allow another operator to use the line if they were compensated according to an STB formula for such use.“CORP then engaged in negotiations with prospective operators, but we were unable to reach agreement with them,” Arganbright said in an e-mail from his office in Jacksonville, Fla. “We remain open to any viable offers that meet these basic terms and conditions.”


• You can reach reporter John Sowell at 957-4209 or by e-mail at
jsowell@nrtoday.com.

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