Date:  Friday, May 04, 2007

Contact: Mike Rowswell, WSDOT, (360) 705-7930, RowsweM@wsdot.wa.gov

Scott Witt, WSDOT, (360) 705-6903, WittS@wsdot.wa.gov

OLYMPIA – The Washington State Department of Transportation (WSDOT) selected US Rail Partners Ltd. and the Washington and Idaho Railway Inc. as the operators of two branches of the Palouse River Coulee City (PCC) railroad.

The PCC is a 300-mile freight rail system, the second largest system in the state, providing local service to over 70 rail-dependent companies and serving hundreds of eastern Washington farmers. The three branches of the railroad are: the PV Hooper line from Hooper to Thornton and Pullman; the CW line from Coulee City to Cheney and Spokane; and the P&L line from Marshall to Pullman.

The state of Washington expects to finalize the purchase of the railroad from Watco later this month. The state’s ownership of the PCC railroad will provide a unique opportunity to create a viable, competitive railroad system that will serve Washington farmers and manufacturers for year to come. As part of the agreement, Watco will continue to operate the PV Hooper line, but will no longer operate the other two branches after May 31.

WSDOT will oversee operations of the PCC freight railroad starting June 1. To ensure continued operations, WSDOT solicited proposals in March from qualified companies to operate and maintain the CW and P&L lines. WSDOT evaluated proposals from seven companies competing for one or both of the branch lines.

US Rail Partners Ltd., headquartered in Illinois, was selected to operate the CW Line under the name of Eastern Washington Gateway Railroad. The operator will work with its affiliates on the new service for locomotive and railcar leasing, sales, track maintenance, and rail to truck transloading. “A team of business development and operating staff will soon arrive in Washington to begin working with customers and to develop the needed operations base,” said John Howell, company president. “June 18 is a target date for beginning operations.”

Washington and Idaho Railway Inc., located in Lewiston, Idaho, currently operates the P&L Line under a sublease from Watco and will continue operations. The company is affiliated with the BG & CM Railroad operating in Idaho and shares office staff and personnel as needed. “We have a good source of track materials so we’ll be able to maintain the rail effectively,” said Stan Patterson, company president. “We intend to continue the excellent service we have been providing and to aggressively build business for the future.”

WSDOT is finalizing an operating agreement with each railroad company and rail operations will start in June. For more information on the PCC Railroad, visit: www.wsdot.wa.gov/Projects/Rail/PCC_Acquisition.

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