Project Title & Location
Palouse River & Coulee City RR Acquisition -- Grant, Lincoln, Spokane, Whitman, & Adams Counties

Project Description
Purchase the 296-mile Palouse River and Coulee City RR to preserve the transportation corridors for long-term availability. Select operators for each Branch and make emergency repairs to provide an immediate opportunity for economically viable freight transportation operations.

Contractor/Consultant
Watco Transportation Services Inc. d/b/a/ Palouse River and Coulee City Railroad (PCC), Rosalia, WA

Recent Progress

The 2004 Legislature appropriated funds to purchase the CW branch of the PCC Railroad that is owned by Watco Companies, Inc.  In September 2005, the owner withdrew the property from the sale, claiming that the scrap value of the railroad had increased substantially.  WSDOT restarted negotiations on January 2006, but an agreement has not been reached.

The 2006 Supplemental Budget combined the Palouse River & Coulee City Railroad Acquisition project and PCC Cheney-Coulee-Pullman Upgrades project into this single project.

It is unknown whether a voluntary acquisition agreement can reached with Watco for the remaining line, or whether formal, adversarial proceedings will be needed before the Surface Transportation Board.  Until the matters are resolved or an interim agreement reached, the purchase and projects will be held in abeyance.

Design Construction Impacts
Implementation of an operating agreement subsequent to the purchase of the right of way.

Environmental Impacts / Compliance
As the railroad is already in operation, no environmental compliance is required.

Impacts to Traffic
Purchase of the railroad will ensure continued availability of lower cost local rail service in eastern Washington.

Planned vs. Actual Expenditures
(Total Project Cost)

Nickel funds included in above costs

2005 Transportation Partnership Account