Port Comprehensive Plan workshop discusses the future of rail line

DAYTON-The Port of Columbia Board heard from Consultants Maul, Foster and Alongi who facilitated another monthly workshop to discuss an identified top priority topic, the sale of a Port asset, Columbia Walla Walla Railroad.

Consultants Abbie Russell and Seth Otto began first by illustrating the benefits of holding the rail as a public asset in that it provides public access, tax benefits and that it retains public interest. Being publicly owned, it can qualify for government funding for maintenance and repairs that a privately owned rail would not. There is demand for short-line agricultural transport that has value for overall economic development. Commissioner Genie Crowe inquired whether grants allow the hiring of someone to manage them for large projects to which she was told they often do.

Russell went on to say, "There's a reason people buy up the railroads on a Monopoly board." She cited the importance of the rail for how people move things, and she recommended the Commission consider the long-term economic potential of the rail, to speak with other ports and short line railroads and to appraise the Port rail to assess its value. The consultants continued by addressing the Commissioners desire to attract larger businesses and how the rail can be one of the factors that draw them.

Port Executive Director Jennie Dickinson moved the discussion to the potential sale of the rail line to Operator Paul Didelius and said that they would have to consult with other entities including the grain growers, Seneca, The PCC Rail Authority and the Surface Transportation Board. She expressed her concerns that selling would hand over control to Didelius who could choose to make profit by storing cars on the rail rather than running it.

Otto pointed out that to dispose of the rail line, the Port would have to surplus it based on that is not needed or being used for its intended purpose. Commissioner Chair Seth Bryan responded that he plans to speak with other Ports that have short lines within their counties. He clarified that he is not wanting to sell the line for it to no longer operate, but rather because he thinks the operator can do more with it than the Port is able to do. He would rather focus on other Port assets and projects. He would like to explore selling the rail line while acknowledging Dickinson's concern about no longer having control of it. "As a government agency I am not interested in buying up all the railroads on the Monopoly table and getting as big as we can and gaining control of as much as we can. I think that assets are better in the private sector...that puts it back on the tax rolls for property tax." Dickinson retorted that if the Port sells the rail, they will not be able to control whether it operates or not, and to sell it is to sell infrastructure like a road or bridge and it is a serious decision.

Russell stepped in to remind Bryan of the potential the rail offers for industry. He answered the same can be offered if it is owned privately. She continued by stating that when something is privately owned, it is not always maintained and does not guarantee public access. Bryan answered that the Port has been limited on its maintenance and that the operator has expressed confidence that the operator will better be able to maintain it if he owned it and he may run a tourist train. Dickinson said that she supports Didelius as the operator but thinks because he wants to buy the rail, he is saying what they want to hear and that he is motivated to use the rail as collateral to secure loans if he owned it. Bryan countered to say that should the operator no longer wished to lease the rail to operate, it would also be at risk of not being used. Dickinson answered that the Port offers use of the rail for an extremely low rate at $4000 a year where other rails charge $13,000 a month and still get many operators bidding to operate. Crowe reminded Bryan that they need to be looking at the future and assess the potential need for rail traffic.

Some discussion continued citing a few examples of other ports that have sold assets. The Commission will continue to research and meet with various entities to determine how to move forward with the comprehensive plan regarding the railroad.