In the early 90's a large storm hit Tillamook and shut the railroad down. The State of Oregon, who controlled the railroad, asked Willamette Valley Railway to operate the railroad. As one of the owners of WVR, I spent considerable time (24/7) making the line function. $7.5 million of taxpayer money was spent that year alone.
I am well aware of what the loss of rail will do to the shippers. However, the chip trucks are having no problem traveling the Wilson River Highway. There are places in the Hillsboro-Banks area for a lumber transload and a feed transload. Stimson has a mill near Forest Grove and Hampton has a facility at Willamina. I believe POTB has a surcharge and gets a good switch charge for moving cars.
Based on 27 years of railroading in Oregon and my experience with Tillamook, it is about time to quit funding Tillamook with public money.