Rail line runs again

Eastern Washington grain growers have resumed shipping wheat by railroad, using the 108-mile CW Line between Coulee City and Cheney that was shut down last winter by its owner.

The CW Line, owned by Watco Cos. Inc., based in Kansas, was shut down in December as farmers protested surcharges added by the owner to cover operating costs.

Since December, Washington state officials and Watco have tried to resolve a dispute over an intended purchase of the line by the state.

That dispute is closer to resolution, said state Sen. Bob Morton, R-Kettle Falls. “At least we have trains carrying grain again,” he said.

Since late July, Watco has been operating two 26-car trains a week, hauling grain to Cheney. Regional officials say the resumption of service gives farmers an affordable option to trucks for hauling grain to market.

“Both the state and we are making a good-faith effort to resolve the problems (we’ve had) and work toward a solution,” said Ed McKechnie, chief commercial officer for Watco Cos.

The plan, he said, will mean growers will be able to use the rail line for at least a year or so. Before resuming operations, Watco committed to charging growers and grain companies $472 a car, the standard shipping tariff.

Growers committed to shipping at least 2,600 carloads of grain to Cheney, said Kevin Whitehall, general manager of Central Washington Grain Growers, based in Waterville.

His group represents about 1,500 growers in the five-county north-central Washington area, he said.

Elected officials have said using the railroad for hauling grain prevents an expensive yearly investment in state and county roads, which would be damaged by truck traffic if the grain were hauled that way. Without the train line, growers would use 150,000-pound-load trucks to haul the grain to Wenatchee, Ritzville or Marlin, Wash., then transfer the wheat to main-line carriers like BNSF.

The CW line brings grain to Cheney where cars are switched onto BNSF trains that carry them west to Portland or other ports.

Resuming the CW Line balances the grain-to-market system, added Whitehall. “It’s important that we have two choices. It’s not good when you have just one option, either truck or rail,” he said.

Watco spent the past six months improving and repairing the line, McKechnie said.

Moisture and other conditions create above-average maintenance costs for the short line, he said.

In past discussions with state officials, Watco had said the line didn’t generate enough yearly traffic to maintain operations. On Monday, McKechnie said the line needs to increase traffic to roughly 5,000 cars a year to generate a solid return for any owner.

Washington grain growers are reporting a decent year, with prices up about 10 percent, although “we’re also paying more for diesel and fertilizer than last year,” said Mark Schoesler, a Ritzville Republican state representative and wheat grower.