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

Quarterly Project Report Update for Quarter Ending December 2006

Project Title & Location
Palouse River & Coulee City RR Acquisition -- Grant, Lincoln, Spokane, Whitman, & Adams Counties

Project Description
Purchase the 296-mile Palouse River and Coulee City RR to preserve the transportation corridors for long-term availability. Select operators for each Branch and make emergency repairs to provide an immediate opportunity for economically viable freight transportation operations.

Contractor/Consultant
Watco Transportation Services Inc. d/b/a/ Palouse River and Coulee City Railroad (PCC), Rosalia, WA

Recent Progress

The 2004 Legislature appropriated funds to purchase the CW branch of the PCC that is owned by Watco Companies, Inc.  In September 2005, the owner withdrew the property from the sale, claiming that the scrap value of the railroad had increased substantially. 

Negotiations have resulted in resumed interim operations on the CW line until June 2007.  The due date for completing a Memorandum of Understanding with Watco was October 31, 2006.  This date was not met due to difficulty in identifying and classifying the real estate properties associated with the sale.  All other elements of the pending MOU have been established and we are now anticipating that the real estate element will be resolved in January 2007.  Due to the increased cost of acquisition and interim operations of the PCC, the amount of funding available for the rehabilitation of the system may be no longer sufficient to complete the project as originally scoped.  The rehabilitation plan will need to be reviewed to make appropriate adjustments to stay within the original budget.

Design Construction Impacts
Implementation of an operating agreement subsequent to the purchase of the right of way.

Environmental Impacts / Compliance
As the railroad is already in operation, no environmental compliance is required.

Impacts to Traffic
Purchase of the railroad will ensure continued availability of lower cost local rail service in eastern Washington.

Project Milestones Scheduled Attained Milestone Outlook
Phase 1 Purchase Complete Jun 2004 Nov 2004
Phase 2 Purchase Complete Aug 2005 Date was not met due to negotiation-related delays.
Project Cost Summary: Dollars in
millions
Percent
of Total

Planned vs. Actual Expenditures
(Total Project Cost)
Project Expenditure Chart

Preliminary Engineering
Right-of-Way
Construction $28.11 100%
Funded Project Costs $28.11 100%

Nickel funds included in above costs

$28.11 100%

2005 Transportation Partnership Account

  For more information, go to www.wsdot.wa.gov/projects

Mike Rowswell, Freight Project Manager, 360-705-7930, Email RowsweM@wsdot.wa.gov, or Scott Witt, WSDOT Freight Strategy & Policy Office, 360-705-6903,  E-mail WittS@wsdot.wa.gov