Re: Deadline Nears on Coos Bay Rail Line Purchase
Author: Mike Root
Date: 02-01-2009 - 17:26
Handling charges (revenue) to the shortline are not generally based on the miles the shortline moves the cars. Both Willamette Valley Railway and Albany & Eastern Railroad received the same handling charge no matter how far the load moved (1 mile or 49 miles). Surcharges were placed on some of the business on the ends of the branches. Some shippers screamed and others didn't. When you are on the end of a branch such as Coos Bay, you better have a considerable car count. I know one shipper near Coos Bay that was trucking lumber to a reload at Lebanon because I set it up (BNSF traffic). I also understand some business is moving to reloads in Eugene for both UP and BNSF. Tunnels and bridges are expensive to maintain. One way to solve part of the problem of shipper involvement is to have the shippers own a stake in the railroad. If they don't ship and the railroad shuts down, the shipper will lose their investment.