[Comm-Council] FW: NEWS RELEASE: Governor Testifies at Surface Transportation Board Hearing

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Lonn Hoklin

Public Affairs Manager

Oregon Department of Administrative Services

503.378.2627

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________________________________

From: GOVERNORS Press [mailto:Governors.Press at state.or.us] 
Sent: Thursday, August 21, 2008 11:19 AM
Subject: NEWS RELEASE: Governor Testifies at Surface Transportation
Board Hearing

 

 

 

Theodore R. Kulongoski

          Governor

          

 

FOR IMMEDIATE RELEASE

NEWS RELEASE

August 21, 2008

 

Contact: 
Anna Richter Taylor, 503-378-6169

Rem Nivens, 503-378-6496

Jillian Schoene, 503-378-5040 

 

Governor Testifies at Surface Transportation Board Hearing

Governor urges board to reject abandonment of the rail line owned by
RailAmerica and accept Port of Coos Bay proposal to purchase the line

 

(Salem) - Governor Ted Kulongoski today testified to the federal Surface
Transportation Board urging the board to reject the proposal from
RailAmerica to abandon a portion of the Central Oregon and Pacific
Railroad (CORP) Coos Bay rail line. He also urged the board to accept a
proposal by the Port of Coos Bay to purchase the line to prevent
economic hardship for Coos Bay and the surrounding communities. 

 

"The sudden shutdown of the Coos Bay line of the CORP railroad by
RailAmerica has created great uncertainty for companies in this region,"
Governor Kulongoski said.

"This uncertainty cannot continue - and the answer is that rail service
must be restored. To do anything less is unfair and unjust for the
citizens in this community who rely on this railroad to provide for
themselves and their families." 

 

The rail line was abruptly closed in September 2007 by RailAmerica who
cited safety concerns due to deteriorating tunnel conditions. The repair
costs were estimated to be $2.9 million by RailAmerica, but the company
asked for over $18 million from the state and local communities to fix
their railroad, along with $16 million in future funding to help with
operating costs and to continue capital improvements to the line. 

 

In attempt to get the line operational again, the Governor offered to
help develop a long-term solution if RailAmerica would repair the
tunnels and get freight moving. RailAmerica rejected that offer. In
response to the abandonment effort, the Port of Coos Bay has submitted a
proposal to purchase the line and keep it open. 

 

"After many attempts by the state to be a partner, it is my opinion that
the only option for the board at this time is to adopt the Port of Coos
Bay feeder line application," Governor Kulongoski said. "This solution
is the right thing to do on behalf of the employees, the businesses and
the community."

 

In closing, the Governor asked the Surface Transportation Board to use
its position to help develop a national policy that protects
transportation infrastructure to rural communities, citing the
importance of railroads in particular.

 

"At some point, providing infrastructure for rural America cannot be
just a bottom-line accounting decision.  Otherwise, small economic
regions like the southern Oregon coast will become more isolated and
economically unstable," the Governor said. "This isn't good for our
state or our country. With your help, we can create a national
transportation policy that ensures connectivity of our transportation
needs to every corner of our nation."

 

For the text of the Governor's testimony, click here
<http://oregon.gov/Gov/speech/2008_0821.shtml> .

 

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