Valley Voice Newspaper

Tulare County - As the battle to halt the proposed abandonment of 40 miles of San Joaquin Valley Railroad track continues, at least five rail companies have expressed interest in purchasing the short line company.

Tom Sparks, chairman of the newly formed Tulare County Rail Commission, said this week that five established rail companies have contacted local officials expressing interest in what is transpiring in SJVR's abandonment bids.

The federal Surface Transportation Commission is scheduled to rule by early June on two petitions by SJVR for abandonment of a 30.59-mile segment and a 9-mile segment between Exeter and Jovista, near the Kern County line. Tulare County officials, lead by the Tulare County Economic Development Corporation and Tulare County Association of Governments (TCAG), are fighting the proposal.

SJVR says the abandonment proposals and the moving of its dispatch and customer services center from Exeter to out-of-state locations simply is an effort to improve service to its 136 customers in the Valley while making its operations more effective and financially efficient.

In a separate action, not related to the abandonment issue, five positions in the Exeter headquarters office will be moved. Dispatching has moved to Saint Albans, VT, and customer service will be shifted to Roseburg, OR, by the end of summer.

The move to halt use of 40 miles of SJRV track could, some officials say, turn into a positive with the recent interest shown from others in the industry. Paul Saldana, executive director of the EDC, confirmed his office has been contacted by rail firms which he said appeared to be on “fact finding” missions on what is happening. Some of them, he said, have offered financial assistance or potential purchase of SJVR pending the outcome of the federal commission ruling. Saldana did not name any of the rail companies but said initial indications are that they are established railroad companies.

Sparks, the local rail commission chairman, said he has had contact with a Pennsylvania coalition of local governments, similar to TCAG, which pooled funds and purchased an abandoned rail line which has been very successful. Sparks said he expects to learn more about that in coming weeks. He also said it is not unusual for rail companies to keep close tabs on abandonment proposals for potential opportunities in places where rail service already has been established.

Like Saldana, Sparks said once the STC makes its rulings, Tulare County should have a better idea on which way to go in efforts to encourage and promote rail service in the county.

Despite the on-going issue with the federal STC, local officials have been talking with SJVR on several potential financial options, including subsidizing, a joint-powers agreement and other considerations but the situation generally is on a wait-and-see status.

No matter the STC ruling, it is apparent that the abandonment issue has ignited considerable focus on the importance of rail service in the Valley, especially in Tulare County. Officials are quick to point out that expanded rail use is a viable and needed option to transportation costs and reduction of truck traffic, air quality standards and highway congestion and roadway impacts.

SJVR is seeking to abandon the two rail segments which largely service southern Tulare County, claiming a lack of business and high maintenance has made keeping the lines financially unfeasible. The lines have, for the most part, been void of rail traffic for months as the abandonment petitions are considered. If abandoned, the 40 miles of rail could be ripped out and sold for salvage, a consideration already expressed by SJVR.

But with recent interest in a potential purchase of all or a portion of the SJVC system, some abandonment opponents have expressed optimism for keeping the segments viable. Local officials say once rails are gone it is almost impossible to replace them.

Officials fear abandonment will not only impact the county's ability to attract and expand industrial development in addition to generate more trucking, they say SJVR has discouraged the use of the targeted segment. They point to a $950 per car surcharge imposed and later rescinded and a reluctance to promote additional service as a means to support the abandonment petitions. County officials also said that they termed inadequate and selecting financial data provided by SJVR to the federal agency.

In its originally protest documents and rebuttal to STVR's answers, Tulare County say the company's information ignored economic facts such as rail car storage fees and other revenues generated along the SJVR system. They say selective information has not painted a true and complete picture of the company's economic status on the two segments in question.

Some see the abandonment bid as a trial balloon by SJVR's parent company, Rail America, to either downsize or eliminate its short line operations. Critics say the company pushing for small segments demonstrates poor financial performance to win abandonment approval.

Rail America, owned by Fortress Investment Group, has 41 short lines and regional railroads in 25 states and three Canadian provinces.

The above story is the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher.