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June 1990 - Page 4

A massive Burling!on. Northern c oncrete t ie installation p roject in t he C olumbia River G orge has caused some severe traffIc tIe-ups a nd e ven forced the railroad t o d etour some traffic v ia UP. O ne such train was the 696 on March 31, 1990, shown a t Crates, Ore., with BN 's line visible across the river. The detours run from North Portland Junction to Oregon Trunk J unction via the b ridge a t Wishram, Wash. Greg Brown

On May 2, Union Pacific announced t hat t wo well-Imown c ompanies from t he s hort line a nd r egional railroad b usiness h ave b een s elected a s p otential operators for t wo s eparate g roups of ex-MoPac b ranch l ines in Kansas (see Expediter, P RN310). Kyle Railroad, w hich a lready o perates 411 miles of track in Kansas a nd Colorado, is currently negotiating w ith UP to l ease t he 347-mile "northern" group. Kyle is a subsidiary of Kyle Railways, Inc., w hich b oasts a s ystem of s even railroads across t he U.S . Chicago W est Pullman Transportation is i nterested in t he "southern" p ackage of b ranches , a nd is currently discussing l ease a rrangements for t he 298 miles of track w ith UP. CWPT operates s even freight railroads, including regional I owa I nterstate, w hich it acquired earlier this year. Both deals are subject to ICC approval, b ut if negotiations proceed smoothly look for b oth c ompanies to b e i n b usiness o n t he b ranches b y early 1991.

SANTA FE SETTLES ETSI SUIT: S anta F e Pacific Corp.
h as a voided m ore costly a nd t ime-consuming litigation a nd a p ossible billion-dollar judgement in t he i nfamous ETSI c oal slurry pipeline s uit , b ut i t w asn't c heap: SFP a greed t o p ay t he e nergy c ompany $350 million over t he n ext e ight y ears . This b rings t o a n e nd o ne of t he c ostliest territorial b attles i n W estern r ailroading history; S anta F e , along w ith C&NW, BN, UP a nd KCS , p aid o ver $700 million t o a p ipeline c ompany w hich n ever b uilt a p ipeline a nd a ccused t he railroads of conspiring t o k eep it from d oing s o. T he j udgement a gainst S anta F e h it t he company b ottom l ine h ard d uring 1990's first q uarter, t urning l ast y ear's $187.5 million n et income for t he p eriod i nto a $61.4 million loss t his year.



p owered b y OC&E u nits 7601 , 7605 a nd 7602. On M ay 1, a t rain of e mpties w as t aken b ack t o Ely for s torage-and t he r ailroad w as officially p ut i n m othballs. Oregon's l ast logger w as p urchased b y Weyerhaeuser i n 1975 a nd e njoyed a nnual traffic levels of around 35,000 l oads in t he l ate 1970s. L ast year, OC&E h auled only 9 ,000 l oads-still c lose t o a b reak-even l evel-but a s harp c utback a t t he W eyerhaeuser mill in Klamath Falls s pelled d oom for t he r ailroad ; only 3,000 l oads w ere f orecast for 1990. T he t rack will probably b e a bandoned; G reat W estern Rail M useum h as e xpressed interest i n s ome of t he l ine , a s t hat g roup is b eing f orced t o v acate t he M cCloud River Railroad t his year.

4 . JUNE 1990

OC&E RUNS ITS LAST TRAINS: L ogging r oad O regon ,
California & E astern is officially o ut -of-service. T he l ast revenue r un r eturned from Ely, Ore ., o n April 29 w ith 75 l oads

of Chicago ( whose w oes w ere d etailed i n P RN315) i nitiated s teps t o t urn a round i ts r ecent l oss of b usiness. I n t he p ast y ear , all n ine of t he r ailroads

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