Railroad to Resume Late Spring, Operator Says

DAYTON-Paul Didelius, owner and commercial director of Frontier Rail, LLC, operator of the short line railroad between Dayton and Walla Walla, spoke about work progress and outreach to potential customers, at last week's meeting of the Port of Columbia Commissioners.

Didelius said that 98% of a first rail bank grant has been used and the majority of the work repairing rails and bridges has been accomplished. He said that as soon as they receive the remaining two percent of the rail bank grant, they can begin tackling an issue west of Waitsburg, after which the rail lines will open in late spring.

"Because there is no good state-compliant walkway above the Touchet River, in a sort of tight spot where you've got the river straight down and a hill on the other side, we are looking to scoot the railroad a little further away from the edge before we run trains through there," said Didelius.

"A siding at Blue Mountain Station has been contracted out, and the contractor is making steady progress and it is looking good, from what I'm seeing," he added.

With regard to business development, Didelius said he has had many conversations with potential agriculture customers about moving chemicals, fertilizers, and grains by rail.

"We have had some fruitful conversations with Seneca. Their business is doing well. They are continuing to expand their plant," he told the commissioners. "There is some interest in their making use of the rail corridor between their two plants, and also reestablishing shipping with us. The changes they are making to their plant to expand their shipping area still do nothing to harm their ability to use rail."

Didelius answered a question posed by Port Commissioner Earle Marvin about whether the railroad could be used by PacificCorp for transporting wind turbines when they upgrade their Marengo facility in 2018-19.

Didelius said his company is very interested in that and will continue to engage with Union Pacific, who does the marketing for those types of things.

One issue is that as the wind generators and blades get bigger, they get to a point where they are bigger than the North American train tunnels can handle, and longer than the cars can handle, which forces the traffic onto the highways.

Having a temporary lay-down yard for offloading wind blades somewhere in the Touchet Valley, close to potential wind projects or at the Blue Mountain Station, is possible, Didelius said. The siding at Blue Mountain Station would facilitate development of a temporary lay-down yard there.

Didelius said several issues still remain in developing more rail service. One concern is the lack of a terminal on the Walla Walla end.

He said his company's franchise ends in the middle of the golf course in Walla Walla, after which they become a tenant operator on into town. The interchange hand-off point with the railroad between Walla Walla and Wallula is on the Union Pacific tracks. Local commodities would have to be handed to a new carrier just to be moved an additional ten miles.

Another issue is a drainage problem east of Waitsburg, due to silting back under the rail bridge. Commissioner Gene Warren said that was caused by a flash flood in December 2015.

Didelius said the bridge is being dug out for repairs, but actual drainage issues will be addressed after the fall harvest.

Sometime in the future, Frontier Rail might want to purchase the rail line, if it is a fit for the community and its interests, said Didelius.

"We have a mutually-arranged three-year lease for this initial term, which allows both parties to see how the relationship develops," he said. "I would love to be in a position in a year or two to discuss another three or five years, or a purchase option."

Didelius said it is important to him that the railroad "get some relevance to the community," so that people like it and treat it well. Business decision makers need a commitment from people to use it, he said.

The commissioners approved applying $5,000 from the sale of Port-owned land at Seneca, toward a cost overrun for the project that Frontier Rail is covering.

Brad McMasters, the Port of Columbia Economic Development Coordinator told the commissioners he will report to them, on a quarterly basis, about current rail use, leads, numbers of rail cars used annually, and economic impacts to the county, when the railroad is operational.

In other port news, Port Manager Jennie Dickinson said there has been $106,000 worth of repairs made to the Lyons' Ferry Marina, which sustained extensive damage from winter weather. She said the annual inspection with the U.S. Army Corps of Engineers went well, and the Corps has given the Port extra time to perform an electrical certification requirement.

The commissioners approved an $8,704.07 bid from Dayton Construction, Inc. for grading and graveling at the Port Industrial Park.

They also approved a request from Dickinson that she be allowed to sign a $30,000 contract with Reid Middleton for the development of a marine facilities design and layout for Lyons Ferry Marina.

The next regular meeting of the Port of Columbia commissioners will take place at Lyon's Ferry Marina on June 14 at 10 a.m.