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Rail Office – PO Box 47387 – Olympia, WA 98504-7837 – 360-705-7901
FOR IMMEDIATE RELEASE November 1, 2004
Contacts: Judy Giniger, Director, Public Transportation and Rail, 360-705-7921
Theresa Gren, Rail Communications, 360-705-7904
WSDOT Announces Purchase of Palouse River and Coulee City Railroad
Today, the Washington State Department of Transportation announces purchase of the Palouse River and Coulee City (PCC) Railroad right-of-way in eastern Washington. The $8 million purchase was set in motion with the approval of the 2003 Transportation Funding Package and was completed in accordance with legislative direction. The PCC rail system provides local rail service to over 70 businesses in Whitman, Lincoln, Grant, Spokane, Columbia, and Walla Walla Counties
Specifically, WSDOT is purchasing nearly 300 miles of right-of-way from WATCO, Inc., which has owned and operated the railroad since 1992. The line handles nearly 20 percent of all Washington grain shipments and, like many shortline railroads, has suffered years of deferred maintenance. The purchase opens the door for WSDOT to make up to $22 million in track improvements over the next eight years, as stipulated by the legislature in the 2003 Funding Package.
In addition to closing the sale, WSDOT has finalized its operating lease with WATCO for a term of 15 years with options to extend it beyond that time. The terms of the lease require WATCO to keep the tracks in good operating condition while WSDOT completes the rehabilitation work. WATCO is also required to maintain and strengthen its customer base to keep the operation sustainable over time.
The purchase culminated an 18 month process which included meetings with communities, farmers and businesses along the route and a detailed a financial assessment of the long-term viability of the railroad.
"This keeps our goods moving to market. Our economy depends on it," said Glen Squires of the Washington Wheat Commission.
For more information about the PCC railroad, please visit www.wsdot.wa.gov/Projects/PCC_Acquisition/.