Oregon Public Broadcasting

The port of Coos Bay says it is moving forward with the multi-million dollar purchase of a critical freight rail line to Eugene.

The rail service is important to timber mills and other companies.

But the port says it's about $4 million short of the purchase price.

Martin Callery is a spokesman for the port.

He says the port will cobble together loans and grants from federal, state, and private sources.

Martin Callery: “We are being pragmatic, but we also have to be cautiously optimistic. Our goal here is to acquire this rail line, make the necessary repairs and get it back in service for the mills in this region. We have job to hang on to these jobs in our region.”

The credit crunch has made it more difficult for the port to raise money to buy the Central Oregon and Pacific Railroad.

Federal regulators approved the sale, and set a mid-February deadline for the purchase.

Callery says the port may ask for an extension.

If the port doesn’t make the deal, the current owners can abandon the railroad and sell off the steel and other parts.