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

Quarterly Project Report Update for Quarter Ending December 2008

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

Palouse River & Coulee City RR Rehabilitation--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
 Acquisition
WSDOT is working with the PCC and shippers to establish boundaries for each lease on the P & L and PV Hooper branches.  This will provide the basis for preparing the final deed that will formally transfer the additional property that the State purchased in the May 2007 transaction with the Palouse River and Coulee City Railroad.

Rehabilitation
The 2008 rehabilitation project for the P & L Branch was completed in late November 2008.  The projects on the CW Branch and PV Hooper Branch encountered delays, but are nearly complete.  Weather halted final completion.  WSDOT anticipates that the PV Hooper Branch project will be completed in late March 2009, and that the CW Branch project will be completed in April 2009.

Additional Rehabilitation Projects and Oversight of Operating Leases

The PCC Rail Authority reviewed the operating railroads' business plans for 2009, and worked with the operators to clarify any issues and obtain any needed assurances.

WSDOT is directly managing the additional rehabilitation projects for 2009 at the Rail Authority's request.  Only minor planning and environmental work remains.  Engineering and bid preparation will begin in February 2009.  The project for the PV Hooper line should be advertised for bids in early April 2009, with construction beginning in early June 2009.  The projects for the other two branches will be advertised successively after the PV Hooper ad, with construction beginning no later than July 1, 2009.

Design Construction Impacts

Environmental Impacts / Compliance
No environmental compiance is required, because the railroad is already in operation.

Impacts to Traffic
Purchase of the railroad will provide an opportunity for shippers to continue to use rail as a modal choice in portions of eastern Washington.  Truck traffic should be reduced as a result.

Project Milestones Scheduled Attained Milestone Outlook
Phase 1 Purchase Complete Jun 2004 Nov 2004
Phase 2 Purchase Complete Aug 2005 May 2007
Construction Begins Jun 2008 Jun 2008
Construction Complete Apr 2009 Funding after June 2009 was removed from the "project."  Rehabilitation funds can be reappropriated under current legislative intention.
Project Cost Summary: Dollars in
millions
Percent
of Total

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

Preliminary Engineering
Right-of-Way $9.175 49%
Construction $9.762 51%
Funded Project Costs $18.937 100%

Nickel funds included in above costs

$18.937 100%

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