Oregon International Port of Coos Bay Rail Reactivation Services Parklake Drive NE, Suite Central Avenue, Suite 300 PO Box 1215

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1 Title Oregon International Port of Coos Bay Rail Reactivation Services A Shortline Perspective Authors Gene A. Davis, PE Senior Railway Engineer Stantec Consulting Services, Inc. Fred Jacquot Director of Port Development Oregon International Port of Coos Bay 2310 Parklake Drive NE, Suite Central Avenue, Suite 300 PO Box 1215 Atlanta, GA Coos Bay, OR Office: +1 (770) Office: +1 (541) Duke Rodley General Manager Coos Bay Rail Link / ARG Transportation Services LLC 115 Hall Avenue Coos Bay, OR Office: 1+ (541) Number of Words MS Word Count: 2,841 Number of Pictures: 250 words per picture = 1,750 words Total Word Count: 4,591 Contents Abstract History Initial Conditional Assessment Funding Growing the Business Economic Impact to the Community Improving the Infrastructure AREMA

2 Current State of Operations Current State of Infrastructure What the Future Holds Abstract How do you go from nothing to something vibrant? Ask the Oregon International Port of Coos Bay (Port)! They went from an embargoed line with no rail service in 2007 to seeing steady year-over-year growth since reopening the line to handling 7,509 carloads in They have partnered with a safety minded, customer-focused carrier in ARG Transportation Services LLC who operates the Coos Bay Rail Link (CBR). The Port engaged several partners to assist with returning the line to active service. This included returning their bridge infrastructure to serviceable condition and compliant with FRA Part 237, which involves the establishment of a formalized Bridge Management Program. The 134-mile CBR extends between Danebo (Eugene) to Coquille, Oregon. In the late 1800s, logging trains began to haul logs to the rivers and harbor near Coos Bay, and over the years, it has provided freight and passenger service to the communities along the rail corridor. SP operated the line for many years, followed by shortline carriers until 2007, when the line was embargoed due to poor infrastructure condition resulting from deferred maintenance. To reinstate rail service, the corridor was purchased by the Port through a Surface Transportation Board procedure and returned to active service in Upgrading infrastructure for a shortline can be economically challenging, especially when it involves several major long span and moveable span truss type structures. This paper will discuss how the Port has been able to accommodate this, within the requirements of FRA Part 237, and while re-establishing a growing and viable transportation business. History The Oregon International Port of Coos Bay (Port) is the current owner of a rail corridor that lies between Danebo, Oregon (OR), in west Eugene, and extends due west toward the coast and then turns south near Florence, as seen in Figure 1. After turning south, the line traverses some very desolate areas, as well as the towns of Reedsport, North Bend and Coos Bay, before terminating near Coquille. Figure 1 at the top of the next page gives a general directional layout of the corridor as well as illustrates the communities it serves. The Port website features a brief history of the corridor, including a timeline: Beginning in the late-1800s, logging trains worked in remote forested areas bringing logs to rivers and the Coos Bay, Oregon (OR), harbor. Coal moved by rail from mines in the region to sailing ships and later steam ships for export to San Francisco. Coos Bay s maritime commerce has been an anchor for employment and stability for generations of families in the region for more than 100 years. Ultimately, the building of the Coos Bay rail line created more opportunity. Products moved by rail from Oregon's Willamette Valley and Roseburg to Coos Bay for export. Rail moved products that came to Coos Bay by ship and from local manufacturers to markets across North America. As Oregon s economy expanded, ebbed and diversified southwest Oregon s regional prosperity has been built upon the essential infrastructure of the port and rail line. This 134-mile rail line has supported Oregon s economic vitality, providing businesses with direct, efficient and cost-effective access to regional, national and global markets for generations. To this day, railroads remain the most efficient, cost-effective and environmentally sound way to move freight via ground transportation. AREMA

3 Then, came September 2007 and following decades of neglect and underinvestment, Central Oregon & Pacific Railroad and its out-of-state hedge fund owners and management closed the rail line with one day s notice to shippers. The investors wanted to tear up the line and sell it for scrap. They did not see the economic and societal value of maintaining freight rail service. The immediate economic impacts of this closure on south coast communities, including Douglas County communities, were severe. Figure 1: Corridor Map Source: Recognizing the severe impact the rail line closure was having on local business and families, the Port of Coos Bay reached out to community members and business partners. Following community and regional discussions, the Port met with state and elected officials and developed an action plan. The Port spearheaded a legal effort to acquire the railroad and reopen this shipping option. Acquiring the railroad was a lengthy process that was successful due to the unified effort of regional businesses and state and federal officials. The Port filed a Feeder Line Application with the Surface Transportation Board (STB), resulting in the railroad owner immediately filing an action to abandon the line. The Port spent one year and $1.5 million in legal fees pursuing the application and defending against abandonment. The Port of Coos Bay acquired the freight rail line in , seen in Figure 2, following an STB decision. The sale totaled $16.6 million, with the Port utilizing a $4.6 million state loan and $12 million reallocated from the Coos Bay Rail Bridge repair fund. In 2010, the Port received a $7.8 million ConnectOregon III grant and a $13.5 million Transportation Infrastructure Generating Economic Recovery (TIGER) II grant to begin rehabilitation of the rail line. In all, the Port has raised more than $41 million for the effort to repair trestles, bridges, rail, ties and ballast. Once this current phase of work is completed, the rail line will have been restored to a mix of Track Classifications 2 (25 mph) and 3 (40 mph). AREMA

4 Today, service is restored and rail shipments interchange at Eugene, Oregon, with the Union Pacific Railroad and other regional shortline rail operations. The rail line is operating as the Coos Bay Rail Link - CBR, and serves the Coos County, western Douglas County and western Lane County region of southwest Oregon, linking the Coos Bay harbor to the North American rail system. Figure 2: Corridor Timeline Source: Initial Condition Assessment As stated above, the Port recognized that certain key track and bridge elements needed immediate repair just to begin consistently traversing the line with maintenance vehicles and work crews before trains could safely travel the line to begin revenue operations. After a thorough inspection of the track and tunnels as well as a cursory inspection of the bridges, some of those immediate repair items included: tunnels; spotting in crossties in certain locations; bridges (including walkway repairs); crosslevel variations; removing rock/mud slides and downed trees blocking or fouling the track and/or bridges; opening plugged drainage ditches and removing large sand dunes (mostly between Lakeside and North Bend) covering the tracks as seen in Figure 3 at the top of the next page (note the Coos Bay Swing-Span bridge in the background). In addition to the items above, all of the active crossing protection systems had to be brought back to serviceable condition including catching up the crossing documentation. The Port recognized that large scale improvements, such as a complete timber & surfacing (T&S) cycle, including sufficient ballast to repair track infrastructure defects (determined after a geometry truck tested AREMA

5 the line), rail replacement in certain areas (after running an internal rail detection vehicle), as well as additional tunnel and bridge repairs, needed to be made. Plans were developed to begin limited revenue operations (between Danebo and Noti, roughly 14 miles) where the track, tunnel and bridge infrastructure was in a better state of repair, while the infrastructure on other portions of the corridor was restored. Figure 3: Sand Dunes (Over the Tracks) Source: Gene Davis / Martin Callery Once sufficient repairs were made, rail operations continued west and south to the North Spit of lower Coos Bay (just across the bay from North Bend). This location was selected because it allowed the train to run around its cars and also did not necessitate crossing the Coos Bay Swing Span Bridge. Funding As mentioned in the history of the line, funding to purchase the corridor came from diverting funds that had been received to perform repairs to the Coos Bay Swing Span Bridge. After initially completing some of the repairs, the line was embargoed and the Port determined that to remain a viable maritime commerce port, rail service needed to continue. The remaining funds were combined with others to accomplish the purchase of the line. Figure 4 on the next page lists all of the funding that was received to assist in purchasing and improving the rail corridor. Growing the Business The Port selected a partner in ARG Transportation Service as their manager and operator (with maintenance responsibilities); together they have grown the business year over year. The CBR s approach toward business development and customer service has raised the annual rail carloads from: AREMA

6 carloads (October December) ,480 carloads ,845 carloads ,509 carloads ,009 carloads (thorough May) Figure 4: Funding Sources Funding 2009-present Loan Grant Use State of Oregon $5,400,000 Rail line purchase SAFETEA:LU $7,200,000 Rail line purchase ConnectOregon I $4,000,000 Rail line purchase American Recovery & Reinvestment Act $2,500,000 Tunnel repair 2009 Oregon Lottery HB5054 $3,500,000 Bridge/other rail related ConnectOregon III $7,900,000 Bridges TIGER II $13,500,000 Track structure SAFETEA:LU $2,500,000 Marine-benign treated railroad ties Ore. Dept. Transportation & Federal $600,000 Signalized crossings Railroad Admin. Totals $5,400,000 $41,700,000 Source: The best way that rail service continues to grow is with on time delivery and providing a safe operation. CBR is not only concerned about the safety of its employees but also the safety of its customers cargo. For the third year in a row, the CBR has been awarded the Jake Award with Distinction by the American Short Line and Regional Railroad Association in recognition of its outstanding safety record and on June 14 CBR celebrated 1,000 days without a lost time injury. When revenue operations returned to the corridor in 2011, two (2) customers were served at Noti. Now that service over the line has been fully restored; the number of active customers is up to fifteen (15). Seen to the right in Figure 5 is a lumber manufacturer near Coos Bay. Commodities shipped over the line include forest products (wood chips, lumber and manufactured wood products), steel and steel components (American Bridge), organic dairy feed and mineral ores. Figure 5: Forest Products Industry Economic Impact to the Community One way to judge the impact to Source: the community is to simply look at the time when the corridor was embargoed and how it affected the local economy. During the embargo, AREMA

7 shipping was diverted entirely to trucks hauling to transload facilities in Eugene. Shipper s transportation costs rose by approximately 50 percent during that time. Another way to measure economic impact is to look at the example of Southport Forest Products (Southport). Before the embargo, Southport had slowly increased employment to nearly 100 people. During the embargo, due to lack of rail service, Southport could not compete as cost effectively and saw its workforce dwindle to less than 45 employees. Since the line has reopened, Southport restored production capacity and added a kiln drying operation. Current plans call for adding new production equipment and an additional rail spur to support increased rail traffic for both the lumber operation and an intermodal connection to a barge facility. Increased employment is up to 80 workers at its North Spit mill. Another way to consider positive impacts to the community would be to consider the amount of trucks taken off the road (reducing road maintenance costs and improving safety, while helping the environment through the elimination of noxious gases). For example, consider the 2012 car loadings of 2,480, which translate to about 8,700 trucks. The roads to the coast from Interstate 5 (I-5) near Eugene and farther south near Drain are two lane rural roads, with poor natural lighting due to tree cover and sometimes very curvy with few passing lanes. Improving safety by taking trucks off the rural roads helps improve everyone s safety. Improving the Infrastructure To understand all of the improvements that have been made, a quick inventory of the physical assets will be helpful. Some attributes of the corridor include: 134 miles long; Nine (9) tunnels; Over 150 water crossings including three (3) swing-span bridges and Over 40 at-grade, highway rail crossings. The rail is a mixture of larger rail sections (136 and 132 RE), medium sections (115 RE, 113 HF and 112 RE) and smaller sections (100 and 90). Some of the corridor is welded, but most is regular jointed rail. All crossties are timber with over 90,000 having been replaced when the Port took over the line. It should be noted that in keeping with the Port s environmental stewardship principles, all new crossties installed were ACZA treated Douglas fir ties. Figure 6 on the next page is a prime example of the varied bridge structures encountered on the CBR. The Siuslaw River Swing Span Bridge has four (4) sections consisting of a through plate girder (TPG) in Section 1, timber trestle in Section 2, three (3) through trusses including a swing-span in Section 3 and about 0.5 miles of timber trestles in Section 4. CBR has over 30,000 feet of bridges of all types (timber trestles, steel trusses, steel TPGs, steel deck plate girders and prestressed concrete). Since taking over the corridor, there have been two rounds of timber bridge component replacements and/or improvements and two rounds of steel bridge repairs. Most, if not all, bridge repairs to date have been related to the physical condition of the bridges. As the CBR bridges are being rated, upgrades and or repairs have been scheduled. Additional ratings are occurring over the next two years at which time repairs will be prioritized and accomplished in order to keep the railroad safe. Lastly, the nine (9) tunnels are of varied construction types including rock lined, timber lined and steel sets with shotcrete (Gunnite) cover. They are in tangents and curved track and in varying degrees of repair. To date, the Port and CBR have utilized over 20 vendors, engineering firms, service providers and other firms to assist in upgrading and improving the corridor, spending over $31M on the line to date with an additional $12M slated for 2015/2016. AREMA

8 Current State of Operations Business is improving but more car loadings are needed to make the long-term improvements that will keep the CBR viable. Speed on the line varies between 10 and 40 miles per hour (MPH). Speed is restricted in the tunnels and over certain bridges, including the swing-span bridges, to 10 MPH. As more and more shippers pursue rail operational efficiencies, the line will continue to improve and grow. To help grow the business, the Port is actively seeking long-term partners to invest in the local economy by building a facility that would ship unit train car loadings via the CBR. Figure 6: Siuslaw River Swing-Span Bridge (Cushman, OR) Source: Gene Davis / Martin Callery Current State of Infrastructure The CBR is a functioning shortline railroad and its infrastructure is getting better. More investment, especially toward the bridge side of the business is required. As the ratings come in, prioritization of investment dollars to accomplish more work will be the key. Also, as traffic grows, more rail replacement and consistent tunnel maintenance will be necessary. What the Future Holds Figure 7 below illustrates what the future looks like for the Port and the CBR. The sun is rising on a sea of opportunities. Just as the rail line helped to spur Oregon s economic vitality years ago, it is poised to repeat that by once again providing businesses with direct, efficient and cost-effective access to regional, national and global markets. Both entities are run by individuals who: AREMA

9 Place Safety First; Place Quality Second and Quantity Third. Their proactive approach to seeing a need (customers paying high shipping costs or losing business due to an embargoed rail corridor) and having the fortitude to make something happen (buying the rail corridor) has started the Lane, Douglas and Coos Counties back on the track to success. For further information about both entities, please visit the links in the References area. Figure 7: Sun Rising on Coos Bay Area Source: Gene Davis References Listing of Figure Options Figure 1: Corridor Map Figure 2: Corridor Timeline AREMA

10 Figure 3: Sand Dunes (Over the Tracks) Figure 4: Funding Sources Figure 5: Forest Products Industry Figure 6: Siuslaw River Swing-Span Bridge (Cushman, OR) Figure 7: Sun Rising on Coos Bay Area AREMA

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12 AREMA 2015 ANNUAL CONFERENCE A REMA 2015 ANNUAL CONFERENCE History Source: Source: AREMA 2015 ANNUAL CONFERENCE Initial Condition Assessment A REMA 2015 ANNUAL CONFERENCE Initial Condition Assessment Immediate Repairs Tunnels Spotting in Crossties Bridges Crosslevel / Surface Rock / Mud Slides / Downed Trees Open Plugged Ditches Removing Large Sand Dunes AREMA 2015 ANNUAL CONFERENCE Funding Funding 2009 present Loan Grant Use $5,400,000 purchase State of Oregon Rail line SAFETEA:LU Rail line purchase $7,200,000 ConnectOregon I $4,000,000 Rail line purchase American Recovery & Reinvestment Act 2009 $2,500,000 Tunnel repair Oregon Lottery HB5054 $3,500,000 Bridge/other rail related ConnectOregon III $7,900,000 Bridges TIGER II $13,500,000 Track structure SAFETEA:LU $2,500,000 Marine benign treated railroad ties A REMA 2015 ANNUAL CONFERENCE Growing the Business (Carloads) (October December) , , , ,009 (Through May) Ore. Dept. Transportation & Federal Railroad Admin. $600,000 Signalized crossings Totals $5,400,000 $41,700,000 AREMA

13 AREMA 2015 ANNUAL CONFERENCE Growing the Business (Materials Shipped) Forest Products Wood Chips Lumber Manufactured Wood Products Organic Dairy Feed Mineral Ores A REMA 2015 ANNUAL CONFERENCE Economic Impact to the Community Shipper Transportation Costs Rose by 50% During Embargo Southport Forest Products Up to 100 Employees Before Embargo, Down to 45 and Now Back Up to 80 Full-Time Employees 7,509 Carloads in 2014 Translates to Taking Over 26,000 Trucks Off the Road AREMA 2015 ANNUAL CONFERENCE Improving the Infrastructure (Track) 134 miles Rail (jointed and welded) Sections (136 / 132 / 115 / 113 / 112 / 110 / 90) 346 Curves Gentle Grades (< 0.8%) Elevation Change from feet 40 Public at-grade, highway-rail crossings A REMA 2015 ANNUAL CONFERENCE Improving the Infrastructure (Tunnels) 9 Tunnels Ranging between 478 4,202 Tangent and Curved Alignments Unlined / Timber/ Steel Sets (with Shotcrete) / Steel Sets (with Timber) and Concrete AREMA 2015 ANNUAL CONFERENCE Improving the Infrastructure (Bridges) A REMA 2015 ANNUAL CONFERENCE Improving the Infrastructure (Bridges) 150 Bridges Over Water and Road Crossings >30,000 Feet of Bridges (including 3 Swing Span) Timber Trestles Steel Through Trusses / Through Plate Girders / Deck Plate Girders Prestressed Concrete Deck Girders Over 140 Culverts AREMA

14 AREMA 2015 ANNUAL CONFERENCE Current State of Operations Continue Safe Operations (Just Completed Over 1,000 Days w/o Lost Time Injury) 3 Straight Jake Awards with Distinction Track Speeds Range Between 10 and 20 MPH 286K Carloads Looking for Long-Term Shipper (Unit Train) to Locate on the Corridor A REMA 2015 ANNUAL CONFERENCE Current State of Infrastructure Continue Improvements to Track and Bridges Over 20 Vendors Utilized Thus Far Over 90,000 Crossties Already Installed Bridge Improvements 2 Rounds of Timber and Steel Repairs (each) More Repairs Will be Accomplished as Rating is Completed AREMA 2015 ANNUAL CONFERENCE What the Future Holds AREMA