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Memorandum signed for state
purchase of Coulee City rail line
Armstrong negotiates deal to keep line open for
wheat transport
About a dozen
representatives of the wheat and grain industry gathered at the state
Capitol this morning (Wednesday) in the governor's conference room with
Rep. Mike
Armstrong. They and an official of the Palouse River and Coulee
City Railroad were waiting for Gov. Christine Gregoire's arrival and her
signature on a document that would begin the sale of an Eastern
Washington short-line railway to the state of Washington.
"How are you?" the
governor asked as she walked through the door.
"We're excited, governor!"
said Armstrong with a smile on his face.
"This is a day to
celebrate," noted the governor as she sat at the conference table
preparing to sign the memorandum of understanding.
The document defines the
sale process between Watco Companies Inc., owner of the CW Branch rail
line, and the state of Washington. The rail line is located between
Coulee City and Cheney.
With the prices of steel
so high, Armstrong said Watco at one time had considered removing the
track and selling it for scrap.
"Money had been set aside
in 2003 to purchase a number of short lines. This rail line was supposed
to have been one of them. However, the Department of Transportation
never got the deal put together. Somehow this line got overlooked," said
Armstrong, R-Wenatchee. "Watco decided since the steel prices were so
high, they could get more money out of scrapping it than operating it.
That would have left our wheat farmers high and dry.
"Our local farmers needed
that line badly to transport grain, so they came to me in December of
2005 asking for help. I called Senator Bob Morton, Senator Mark
Schoesler and Representative David Buri to get their help," added
Armstrong. "We've been working since that time to negotiate this
memorandum of understanding between the rail owner and the state, which
sets forth the process for the state to purchase this line."
"Representative Armstrong
was the first legislator we contacted about this issue in December 2005.
He has been very instrumental all the way through this process, and he's
been the lead legislator on this whole project all the
way through to the conclusion," said L. Kevin Whitehall, general manager
of Central Washington Grain Growers, Inc., in Waterville.
The memorandum of
understanding also includes the purchase of the P&L Branch line in the
Pullman area, the Hooper line between Pullman and Hooper, a portion of
the WIM line between Palouse and the Washington-Idaho border, and a
portion of the rail line between Thornton and Winona. Sale price of the
lines is just over $7.9 million.
Armstrong said once the
purchase is final, the state will accept bids for an operator.
"It's a huge victory for
our farmers to keep these lines open. We estimate that there'll be 4,000
carloads of wheat from that plateau each year. It also allows them a way
to haul in their fertilizer," noted Armstrong. "The other victory is for
the county road department. It keeps trucks off those roads
that would do a lot of damage. Local governments, such as Douglas
County, cannot afford to repair those roads once they are damaged."
Armstrong said the grain
would be transported to Ritzville where it is transferred to container
cars that would be trucked to the Columbia River.
"This will save our
growers thousands of dollars a day from this day to generations to come.
It will keep those growers competitive in the marketplace where they
would not have been as competitive without that line," added Whitehall.
Back in the governor's
office, representatives from Central Washington Grain Growers stood next
to Armstrong, Rep.
David Buri, R-Colfax, and the governor as she and Watco Senior Vice
President Mark Blazer signed the memorandum of understanding.
As Armstrong prepared to
shake the governor's hand, he added, "It's been a long process. However,
good things happen when we all stick together and work together."
Under the terms of the
understanding, the sale should be closed by Feb. 28, with final payment
made by Sept. 30, 2007.
# # #
For more information, contact: John
Sattgast, Information Officer: (360) 786-7257
PHOTOS INCLUDED BELOW:
PHOTO 1: With Rep. David
Buri, R-Colfax, standing in the background, Rep. Mike Armstrong,
R-Wenatchee, shakes Gov. Christine Gregoire's hand following signature
of memorandum of understanding that spells out details of a Coulee City
short line railroad to the state of Washington for grain shipments.
DOWNLOAD THIS PHOTO AT:
http://www.houserepublicans.wa.gov/Armstrong/newsroom/photos/ArmstrongGovRailAgreement.jpg
PHOTO 2: Rep. Mike Armstrong,
R-Wenatchee, Rep. David Buri, R-Colfax, and representatives
of Central Washington Grain Growers, Inc. watch as Gov. Christine
Gregoire signs a memorandum of understanding with Mark Blazer, Senior
V.P., Watco Companies Inc. The memorandum spells out details of a $7.9
million sale of several short-line railroads to the state of Washington,
including the CW Branch line between Coulee City and Cheney. The sale
will allow growers in Douglas County and wheat growing regions of
Eastern Washington to ship grain via rail.
From left: Seated are: Mark Blazer,
Watco Companies Inc. and Gov. Christine Gregoire. Standing are: Rep.
Mike Armstrong; Central Washington Grain Growers board member Tony
Viebrock of Waterville; Central Washington Grain Growers board member
Bob Bandy of Wilbur; Tom Dooley, Olympia; Central Washington Grain
Growers General Manager L. Kevin Whitehall, and Rep. David Buri.
DOWNLOAD THIS PHOTO AT:
http://www.houserepublicans.wa.gov/Armstrong/newsroom/photos/RailAgreementMedResRelease.jpg
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