Rail - Palouse River and Coulee City RR - Acquisition and Rehabilitation - Complete July 2011

Quarterly Project Report Update for Quarter Ending March 2009

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 to finalize boundaries of property in Stations in order to prepare the final deeds for the additional property that the State purchased in the May 2007 transaction with the Palouse River and Coulee City Railroad.

2008-09 Rehabilitation Projects
Work will resume on the PV Hooper Branch on April 9.  Work will resume on the CW Branch on April 20.  All work should be completed by mid-May.  The P&L Branch project was completed before the first quarter of 2009.

Additional Rehabilitation Projects and Oversight of Operating Leases

The Eastern Washington Gateway Railroad (EWG), which operates the CW Branch, encountered severe financial problems.  The PCC Rail Authority and WSDOT negotiated benchmarks with EWG to allow the railroad to continue to operate.  EWG met the first set of benchmarks in a timely manner, and is working hard to meet ongoing benchmarks.

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 began in February 2009.  A project is being prepared for each of the three branches.  They will be advertised for bids over the course of three successive weeks beginning in mid-April.  Construction will start in July and will be completed by the end of November.

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, Project Manager, 360.705.7930, Email RowsweM@wsdot.wa.gov, or Scott Witt, WSDOT Freight System Division, 360-705-6903,  E-mail WittS@wsdot.wa.gov