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Wednesday, February 6, 2008

Rail line closure

Governor stands firm as RailAmerica twists mustache

We don’t often think of Douglas County as a damsel in distress — our county seems a little hardier than that — and Gov. Ted Kulongoski doesn’t always remind us of Dudley Do-Right.

But when you’re tied to a railroad track and held hostage by a black-hatted villain, you go with what’s handed you.

We definitely have a mustache-twisting Snidely Whiplash lurking about in this little melodrama — he’s being played by RailAmerica Inc., the Florida-based parent company of the Central Oregon & Pacific Railroad. CORP announced in September, with no warning, that it was shutting down its 120-mile rail line between Coquille and Eugene because of safety concerns in three tunnels that will take millions of dollars to repair.

Last week, RailAmerica presented the governor with a ransom note. The demand: Have the state pony up millions, along with other private and public entities who are not the owners of the line, to fix the problems. RailAmerica itself offered to put up just $4.66 million of the estimated $23 million repair bill.

Kulongoski’s response? Untie us first, then we’ll talk. Fix the line, get the trains running, then we’ll see if we can help.

Love that response (cue that catchy hero theme music).

Let’s make no mistake about a couple of things here: The rail line to the coast is a vital link for Douglas County businesses both now and in the future. The line services Roseburg Forest Products, American Bridge and other companies in both Douglas and Coos counties. And the Coquille line isn’t the only one in trouble — RailAmerica has also announced restrictions on the Central Oregon & Pacific line that ships goods to California through the Siskiyou Pass.

Another victim tied up in the mess is state money for a new switching yard north of Roseburg that was supposed to be the long-delayed answer to freight trains holding up traffic in this town. When the spur to the coast was shut down, that $7.7 million ConnectOregon grant was placed in limbo.

Let’s make no mistake about something else here: RailAmerica, owned by the powerful Fortress Investment group, is a huge company that runs 41 short line and regional railroads encompassing 7,800 miles of track in the United States and Canada. Those railroads operate in 25 states and three Canadian provinces.

This isn’t a little company that runs the railroad at Petticoat Junction all by itself. Trading today at more than $16 a share on the New York Stock Exchange, it’s presumed the company’s investors knew there would be unforeseen costs when it entered the Oregon market.

It’s simply not right to now expect the state and those who depend on rail service — which would be all of us, in one form or another — to foot the bill for the spur repairs without, at the very least, a more earnest showing of good faith on the company’s part.

We’re solidly with the governor on this one. So untie us, Snidely. Reopen the line. Then we’ll talk.


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