Tulare Co vs RailAmerica (SJVR)

We need a plan!

"County officials said they hope the federal government will be sympathetic to keep the line open as an economic engine in an area with high unemployment.
"I haven't heard a train whistle in Porterville in a couple of months," Ennis said. "I hope we didn't hear the last one."
Very depressing to see how little interest our govt. takes in our future. We should be building rail lines instead of tearing them out. We need to rebuild our manufacturing base here instead of relying on far away foreign countries to make our stuff then ship it here.The days of cheap oil are over, close to home manufacturing is good for energy efficiency and US jobs. These guys are just thinking about 700K of scrap value track instead of the long term good of the county and the country. We need a STB that understands the long term concept and works for the public interest instead of the short term desires of the rail companies. If the companies can't handle the long term situation then they should bow out and let the public take over the rail system, it's just as important as the US highway system.....dave

 

This saga reminds of Penn-Central..
When PC wanted to abandoned some low traffic branch lines the shippers filed against abandoning the track even tho' some of those shippers shipped maybe one car a month.The same could be said about those industries that received maybe 12 cars a year.Still they expected PC to keep that branch open and the cities cried about the lost of jobs and how much their fair cities needed the rail line.Of course their pleas was heard and PC was unable to shed many low traffic branch lines..Later under CR these lines was easily abandon.

 

There's a great article in the June Trains that would be a counterpoint brakie.
It seems that the State of Pennsylvania has made a go of many of those unproductive lines.

 

When fuel prices rise and foreign labor gets too expensive and they decide to move the manufacturing back here we'll need more rail lines than ever. We can't dig canals all over the country and trucks are too inefficient so rail is the best choice.Tulare county is ahead of the game....dave

 

latest...

Plan to shed rail branch gets OK
Tulare Co. officials hope to buy sections from Valley railroad.
By Tim Bragg / The Fresno Bee
06/06/08 22:14:45

VISALIA -- Federal transportation regulators Friday approved one of two applications for abandoning sections of a rail line that links Exeter, Lindsay, Strathmore, Porterville and Terra Bella.

But Tulare County officials said they remain hopeful they can purchase the affected sections to reserve them for future use. The county also is considering partnerships with Fresno and Kern counties to buy other parts of the rail line.

The Surface Transportation Board announced Friday afternoon that it approved the San Joaquin Valley Railroad's request to abandon a 30-mile portion of its South Exeter Branch between Strathmore and the Kern County line, a move that would leave much of Strathmore, Porterville, Terra Bella and Ducor without rail service.

The board denied the railroad's separate application to abandon a nine-mile section of the branch between Exeter and Strathmore. Federal regulators cited deficiencies in the railroad's filing and the presence of a shipper on the line that depends on rail service. However, officials said the railroad could re-file to abandon the section in the future.

Calls to railroad officials Friday were not returned.

On Tuesday, the Tulare County Board of Supervisors will consider an official offer of financial assistance that would allow the county to keep negotiating with the railroad about buying the abandoned section of the line, District 1 Supervisor Allen Ishida said. The county has 10 days to file the offer, which allows it to continue to negotiate a purchase with the railroad.

He said the county would have to make changes in the budget to free up money to buy the line --- if the railroad is cooperative. But he said the cost would be worth it, considering the economic benefits the rail line brings to the southeastern portion of the county.

He estimated the cost at around $800,000.

"We know that more and more freight will be moving by rail instead of trucks in the future, because of the rising fuel costs," Ishida said. "We also have clean air issues in this area, and increased rail capacity can help."

Ishida said the county wouldn't operate the line like a county department. It would likely partner with a private company that would operate and market the services. The county also would like to explore more purchases of San Joaquin Valley lines, including a branch that extends north from Exeter to Dinuba, Reedley and Fresno.
Partnerships with other counties, including Fresno, and private companies could help ensure the future of that rail line, he said.

In its abandonment decision involving the rail line from Strathmore to the Kern County line, the Surface Transportation Board agreed with the railroad that it would lose money if it continued operations -- $110,878 if it continued to run through next year.
It also found the railroad would have to pay $1.3 million to rehabilitate the line, which doesn't make economic sense because it has no active shippers.

The board rejected Tulare County officials' claim that the railroad's $950-per-car surcharge added to its usual fees for cars originating on the line was done to chase away business.

However, in its decision on the nine-mile section between Exeter and Strathmore, the board found that cost figures produced by the railroad were either unsubstantiated or incorrect. It also noted that a shipper, Tulare Frozen Foods, remains on the line, and that the numbers of cars it will ship in 2008 is projected to be 150, and could be 200 by next year. The board said the railroad could re-file to abandon that section of rail in the future if it fixes the problems with its figures.

The reporter can be reached at tbragg@fresnobee.com or (559) 622-2417

 

What happened to the oranges and olives in that area? The VE usta haul hundreds of carloads out of there. Are the crops going out by truck now? If so the rise in fuel price should fix that problem :>)

 

Fresno Bee:

Tulare Co. loses bid to buy stretch of railroad


07/03/08 23:04:29

Tulare County supervisors got word this week that the county lost out to a competitor in its bid to buy 30 miles of railroad from Strathmore to Ducor.

San Joaquin Valley Railroad Co. wants to unload the line, saying it's unprofitable. Parent company Rail America telephoned the county Tuesday to let officials know that it was rejecting the county's offer to buy the line, said Supervisor Allen Ishida of Lindsay.
Instead, the company accepted an offer from Tulare Valley Railroad, in Salt Lake City.

But the county isn't giving up yet, said Supervisor Allen Ishida. It will be in contact with SJVRR and monitor the situation for any openings.

"We're offering a higher net dollar amount" than Tulare Valley, Ishida said.

"Why would a government want to operate a railroad?" asked Michael Van Wagenen, vice president of Tulare Valley Railroad and an executive in an associated company that owns and operates small railroads.

Tulare County doesn't want to operate a railroad; it just wants to make sure the line stays open, Ishida said. The line is needed for the economic development of the south county, and as an alternative to air-polluting trucks, he said.

The problem with Tulare Valley is that "they're a salvage company" and just want to remove the track and sell it for money, said Supervisor Mike Ennis of Porterville.

But Van Wagenen said that by making a formal offer to buy, "it's a commitment that you're going to buy and operate a railroad." TVRR owns the line from Ultra to Ducor and it only makes sense to own the connecting line from Ducor to Strathmore, he said.

The company offered $1 million, he said, while Tulare County offered $500,000. But the sale isn't final and negotiations are still taking place, he said.

The silver lining for the county is that TVRR would be required by law to operate the line for two years before it could take another tack, Ennis said. To abandon the line, it would need to apply to the federal Surface Transportation Commission for permission. The county intends to fight it if that happens, Ennis said.

Meanwhile, Tulare County has hired a lawyer from Chicago who specializes in railroad law, and an appraiser of railroads from Nevada who will put a value on the line and calculate the income it could generate.

Rail America closed early Thursday, and officials could not be reached for comment.

 

Isnt Tulare Valley RR the company who took over all the ex ATSF branch lines in the same area where SJVR took over ex SP branches? If so, they never had any locos of their own to run trains with. Not sure what has happened with those lines.

 

TVRR is somewhat of an oddity. While not part of RailAmerica, it contracts the SJVR to operate its switching on the Ultra branch. The branch being sold abutts the Ultra Branch and most likely the SJVR will be contracted to continue service along that line to the single customer there unless TVRR chooses to begin its own operations. There is little about the company available online except everyone tries to link it to RA when it's not. Anyone who wants to know more would probably have to send a letter to the TVRR corporate offices in Salt Lake City.

Here's the UP's profile on the company/railroad - http://www.uprr.com/customers/shortline/lines/tv.shtml