Derailing the South Coast economy
October 8th, 2007 by Jim JustThe Central Oregon & Pacific Railroad (CORP) is closing its Coos Bay Line, claiming it’s too expensive to repair three deteriorating tunnels. The 120-mile line serves lumber and bridge-building industries, including shippers, in the Coos Bay and Reedsport areas.
CORP says it would cost $7 million over the next five years for tunnel repairs, and would cost $2.8 million to open the line now. The state’s no help – it’s planning to spend is $2 million to “look at” all rail facilities, throughout the state. ODOT, meanwhile, has suspended a grant to CORP worth over $7 million for the construction of a new switchyard in Winchester.
Closure of the rail link could seriously derail the South Coast’s economy. Georgia-Pacific has “temporarily” shut down its sawmill in Coos Bay, idling about 120 workers. About 65 percent of the sawmill’s products are shipped on the CORP line.
American Bridge has set aside plans to expand its business and boost its work force from 57 to 80 by the end of the year. Instead, it is trying to figure out how complete steel structure jobs for projects in Washington and California and still make money on contracts signed long ago while paying five times as much as budgeted for shipping. Dailey Wood Products is also rethinking plans to open a wood pellet production mill at Bolon Island.
Oregon Resources has been seeking to open a chromite mine and processing facility in Coos County – but its plans rely on being able to move 700 to 1,000 rail cars a year on the Coos Bay line.
Yet we think nothing of spending $72.5 million for the I-5 Beltway Flyover in Eugene . . .
October 9th, 2007 at 7:36 pm
nice post…but wdnt hurt to footnote fact the parent company has squillions…raised 3 billion in financing this year, 80 million in stock dividends and had over (Im trying to recall) 124$million in income (net) this quarter –otherwise the impression floats that maybe…just maybe…the state or public shd pay for this….in fact…your final closing implies that….
this isnt an issue about rational allocation of public transportation dollars…its a squeeze play…how the public transportation dollar is hijacked to serve mega-corp interests…
or the corollary…how the planning structure is dysfuctional…to the extent there is a structure…(the state has given a grant to these people….my gawd)
rr–