Contact Information

  • Governor's Office, 360-902-4111

  • Alt Contact:  Watco Companies, Inc.: Mark Blazer, 620-230-8785

Governor Gregoire, Watco Sign Railroad Purchase Agreement

For Immediate Release: February 8, 2007

OLYMPIA � Governor Chris Gregoire today signed a Memorandum of Understanding with Watco Companies, Inc. for the purchase of the CW line of the Palouse River Coulee City (PCC) Railroad. The 300+-mile freight rail system is the second largest system in the state, provides local rail service to over 70 rail-dependent companies and serves hundreds of local farmers.

�Washington, for the first time, will become the owner of a critical operating rail system that supports a large portion of our agricultural community,� said Governor Gregoire. �If the Legislature had not stepped up, if the farmers, WSDOT and Watco had not all participated in making this happen, this critical infrastructure would be lost.�

�Although recent years have been challenging, the Palouse River and Coulee City Railroad has been an integral part of Eastern Washington rail since 1992,� said Mark Blazer, Watco Companies, Inc. Senior Vice President � West Region. �We remain encouraged that the agreement we have reached is a mature approach to continued rail service in Eastern Washington.�

The Washington State Department of Transportation (WSDOT) and Watco (the current owner of the CW line) have been in negotiations for two years regarding the acquisition of the CW line. This Memorandum of Understanding represents the successful conclusion of these negotiations.

The PCC Railroad is comprised of three branches: The P & L branch from Marshall to Pullman, the PV Hooper branch from Hooper to Thornton and Pullman and the CW line from Coulee City to Cheney and Spokane. WSDOT in 2004 purchased the rights of way and rail for the P & L branch and the PV Hooper branch.

The purchase of the PCC Railroad provides a unique opportunity to create a viable, competitive railroad system that will serve Washington farmers and manufacturers for years to come. It will provide the agricultural and manufacturing communities with options for shipping and receiving products. Benefits to Washington from this purchase include lower shipping costs due to the competitive opportunities offered, additional jobs within the rail-dependent industries and a platform for possible future growth along these rail corridors.

Watco will continue to operate all three branches until May 31, 2007. They will continue as the operator of the PV Hooper branch as long as they meet the terms and conditions of the existing operating agreement with WSDOT. Current plans call for operation of the P & L branch and the CW line to be advertised for bids by WSDOT, so that service will continue beyond May 31, 2007.

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