WSDOT Projects

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Rail - Palouse River and Coulee City RR - Acquisition and Rehabilitation


Map of project, from Coulee City to Pullman, St. John and Hooper   Click to enlarge map

Photo of Grain Train near St. John Click to enlarge photo

Project Status

June 2009

The operator of the CW Branch (Cheney to Coulee City) encountered financial problems in late 2008 and early 2009 that threatened final termination of the contract. With assistance from the PCC Rail Authority, the State and EWG negotiated benchmarks that EWG must meet on an ongoing basis in order to operate beyond December 31, 2009. If EWG continues to meet them as they have been doing, the original agreement will control operations again on January 1, 2010.

The Legislature appropriated $3.6 million for projects on the PCC Rail System that are urgently needed. Construction began in early August 2008. The project on the P&L Branch was completed on November 20, 2008. Completion of the projects for the other two branches was delayed until spring because of winter weather. The projects were completed in May 2009.

The Legislature also appropriated $8.6 million to WSDOT to grant to the PCC Rail Authority for further rehabilitation on the PCC. The grant was made, and the PCC Rail Authority requested that WSDOT administer the funds and projects based on information collected in 2007. A project is being developed for each of the three lines. The P & L Branch project went to ad on May 20th. The project for the CW Branch went to ad on June 3rd, and the project for the PV Hooper Branch will go to ad on June 10th.

Overview 
Washington state owns the former PCC Rail System, which consists of three branches. WSDOT purchased the rights of way and rail in the P & L Branch and PV Hooper Branch of the PCC in November 2004.  Purchase of the CW Branch and the remaining rights in the other two branches was completed in May 2007.  

WSDOT contracted with private railroads to operate each of the branches. The PV Hooper Branch is being operated by Watco, the CW Branch is currently being operated by the Eastern Washington Gateway Railroad until July 3, 2009, and the Washington & Idaho Railway is operating the P & L Branch.

WSDOT oversees the facilities and regulatory portions of the operating leases. The PCC Rail Authority-an intergovernmental entity formed by Grant, Lincoln, Spokane and Whitman counties-oversees the business and economic development portions of the operating leases. Ted Hopkins, Lincoln County Commissioner, chairs the PCC Rail Authority.

Why is WSDOT purchasing and rehabilitating the Palouse River and Coulee City (PCC) Railroad?
Public ownership of the PCC capital assets provides an opportunity for private operators to provide economically viable rail service to shippers along the lines.

Rehabilitation is needed to correct the effects of decades of deferred maintenance.  Many places along the lines must be operated at a speed lower than would be allowed if the lines had been properly maintained on an ongoing basis.  Rehabilitation will prevent further deterioration, help raise operating speeds in some locations, and make the operation of the lines more efficient and commercially viable. 

What is the current status of these rail lines?
WSDOT has identified areas along each Branch where rehabilitation is urgently needed, and has contracted to have many of these problem areas corrected. WSDOT is also developing a plan for further rehabilitation projects to be constructed in 2009.

The End Result
WSDOT acquired the PCC Railroad assets to provide an opportunity to create a viable railroad system able to serve Washington shippers for years to come.

Project Benefits

  • Lower shipping costs
  • Preserve jobs at rail-dependent industries
  • Minimize the added wear and tear on state roadways caused each year by thousands of heavy truckloads

What is the project timeline?
The acquisition was completed, and new operators were selected and began operation in June 2007.

A new rehabilitation plan for emergency repairs was developed during the summer and fall of 2007.  Project work began in the summer of 2008. Project work for additional rehabilitation will begin in the spring of 2009.

Financial Information
This project is funded through the following sources:

  • 2003 Legislative Transportation Package (New & Used Vehicle Sales Tax) - $20.7 million
  • 2005 Legislative Transportation Package - $7 million
  • Total Funding From All Sources - $27.7 million

How can I get more information?
Contact:
 
Mike Rowswell
Project Manager
Washington State Rail and Marine Office
PO Box 47407
Olympia, WA 98504-7407
Phone: 360.705.7930
E-mail: Mike Rowswell

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