09/27/06 Lawmakers get update on PCC railroad

Washington Ag September 27, 2006 Members of the Washington Senate Transportation Committee got an update this week on the Palouse River and Coulee City Railroad, the PCC, part of which the state has already purchased and the remaining portion of which it is still negotiating for. Here's what Scott Witt of the Department of Transportation told the committee at a work session in Spokane. Witt: "Right now we are currently negotiating to purchase the CW branch line track and track structure and operating rights and associated lease properties on those branches. In conjunction with that also, we are negotiating the purchase of the associated properties and leases, etc, on the other two lines that were not acquired in the first purchase." Witt said a Memorandum of Understanding between Watco, the seller, and the state is expected by the end of October that will obligate both parties to complete the transaction. He said service on the CW line did resume in July and some grain was shipped in August. Witt said operating rights to the P&L branch has been sub-leased to the BGCM Railroad and the tariff rate dropped this week from 870 dollars a car down to $250. He said the PV Hooper branch continues to serve shippers though a portion of the track is closed due to the destruction of a trestle by fire in August. Insurance claims on that are still pending. I'm Bob Hoff.