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

Quarterly Project Report Update for Quarter Ending June 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 rehabilitation projects were advertised for bid in by branch.

The CW Branch Rehabilitation project bids were opened in June 2008 and the contract was awarded to Balfour Beatty Construction.

The P & L Branch Rehabilitation project was advertised in June 2008 and bids are scheduled to be opened in July 2008.

The PV Hooper Branch Rehabilitation project was advertised in June 2008 and bids are scheduled to be opened in July 2008.

Additional Rehabilitation Projects and Oversight of Operating Leases
As required by the proviso for use of another $8.6 million appropriation for rehabilitation of the lines, the PCC Rail Authority entered into an agreement with WSDOT to oversee the business and economic provisions of the operating leases with the Eastern Washington Gateway Railroad, the Washington and Idaho Railway Co., and the Palouse River and Coulee City Railroad.

The PCC Rail Authority also entered into an agreement for WSDOT to directly manage the additional rehabilitation projects based on a study performed by WSDOT in 2007.  WSDOT began environmental reviews so that construction can begin in spring of 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