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Grain shipping route to continue operations

by Lynne Lynch<br
| April 3, 2009 9:00 PM

COLUMBIA BASIN — Trains will keep moving along a grain shipping route from Cheney to Coulee City.

Negotiations between the state Department of Transportation (DOT) and the Eastern Washington Gateway Railroad  determined to keep the line open.

Grain shippers and businesses  in Eastern Washington, such as the Central Washington Grain Growers and a biodiesel facility in Creston, use the service, said Steve Witt, the state agency’s rail and marine division director, Thursday.

The development comes after the DOT issued a termination notice of the railroad’s operating lease in March because some maintenance and replacement requirements weren’t met, according to the DOT’s Web site.

“The goal was trying to keep an operator in there,” Witt said.

The new agreement entails required financial and operational benchmarks the railroad must meet.

Eastern Washington Gateway Railroad President John Howell said he is happy with the current agreement.

He said he’s confident the railroad can meet the benchmarks and service customers.

The economy contributed to the railroad’s problems, as well as fewer customers than expected, Howell explained.

A new connection to the Geiger Spur was put into service in January with indications from Spokane County about five cars per week of structural steel were expected, he said.

Instead, only about eight cars came in during the first quarter of the year.

Just as they started with the new service to customers, the economy tanked, Howell commented.

The grain harvest also fell last summer and shipments were lower.

But he credited the shippers for their support and providing the use of a skilled negotiator to bring the two parties together.

The railroad is very hopeful about the future, he added.

He thanked the state and the Central Washington shippers led by Central Washington Grain Growers for continuing to negotiate even when the termination notice was issued.