Oregon Public Broadcasting

South Coast logging companies are preparing to ship their goods by railroad for the first time in a few years, after the Port of Coos Bay agreed to buy the rail line between Coos Bay and Eugene. Ethan Lindsey reports on the deal.

The port says it will buy the railroad for $16.6 million, making it easier to move goods from the coast to transportation avenues in the Willamette Valley.

Timber companies save lots of money by shipping over rail instead of by truck, as they are doing now. Many mills laid off workers after the rail line closed.

The price was set by the federal government, and will be paid to RailAmerica, the Florida company that shut down the connection last year.

Bob Ragon is the executive director of the Douglas Timber Operators.

Bob Ragon: “Oh, we’re still not happy with RailAmerica, they haven’t done anything to be helpful – in fact they fought it all the way.”

The port says it will also have to pay more than $3 million to fix up the line, before its projected reopening in mid-to-late 2009.

The Port of Coos Bay is expected to officially buy the line in February.