You are here: Home » Community » Community Development » Regional Transportation
Port, BNSF to Close Rail Corridor Deal
in Early 2009
Credit market difficulties lead to delay
Options include preserving the corridor for passenger rail, bicycling, walking and recreational uses.
Listen to Eastside Rail Corridor public meetings here.
Why is a short-line operator being chosen?
What is the selection process?
What about the excursion or dinner train?
Will the operator provide commuter rail service?
Why is a short-line operator being chosen?
The Eastside Rail Corridor has two portions: the northern portion, between Snohomish and Woodinville, and the southern portion, which stretches from Woodinville to Renton and includes the Redmond spur. Under the terms of the acquisition agreement, BNSF agreed to select a third-party operator to maintain the operation. The operator will pay the Port of Seattle for the rights to utilize the land and will provide freight rail service for shippers in Snohomish County.
What is the selection process?
As part of the acquisition process, BNSF issued a request for proposals earlier this year. BN hosted a bidder’s conference, with attendees from area shippers, the Port, the City of Snohomish, and Snohomish County. BNSF invited 19 organizations to bid; six companies attended the conference and expressed interest in operating the service. Although two bids were received, one was not responsive to the terms of the RFP.
After consulting with the Port, BNSF chose GNP/Ballard, a partnership between Byron Cole of Ballard Terminal Railroad and Tom Payne of GNP Railway. The Port will begin negotiations with GNP/Ballard shortly.
What about the excursion or dinner train?
According to the terms of the RFP, any operator applying for a license to run freight service may also operate an excursion train. Initially, the train could run between Snohomish and the wineries (Woodinville area). The Port also asked for proposals for an excursion train that, depending on the outcome of the public process, could eventually travel between Snohomish and farther south than the wineries.
Will the operator provide commuter rail service?
No. Commuter rail is not included in this proposal. King County citizens will have the opportunity to provide feedback on all uses, including commuter rail, during the upcoming public process. In addition, the Puget Sound Regional Council and Sound Transit are conducting a feasibility study for commuter rail service to the Eastside.
The Sound Transit package on the November ballot contains $50 million partnership contribution toward development of commuter rail for the Eastside; the Port expects that one or more parties will come forward with proposals depending on the results of the PSRC/Sound Transit study.
Any agreements for operation of freight rail will require that future commuter rail be accommodated.
What is the Eastside Rail Corridor?
Why is BNSF selling the rail line?
Why does the Port want to secure the corridor in public hands?
What are the current uses of the corridor?
What is the status of the Port’s purchase of the Eastside Rail Corridor?
How much is the corridor worth?
How do the citizens of King County benefit?
What is envisioned for the future of the Eastside Rail Corridor?
Does the Port of Seattle intend to be the operator of freight service or commuter rail services?
What is the federal rail banking program?
1) What is the Eastside Rail Corridor?
The Eastside Rail Corridor consists of a 42 mile rail corridor stretching from the city of Renton to the city of Snohomish, with an eight mile rail spur running between the cities of Woodinville and Redmond. The rail corridor passes through the cities of Newcastle, Renton, Bellevue, Kirkland, Woodinville, Maltby, Snohomish and Redmond.
2) Why is BNSF selling the rail line?
BNSF, driven by increasing maintenance costs and declining freight use and revenues, has planned to divest the rail corridor since 2003. The rail line is not economically viable for BNSF to continue to operate it.
3) Why does the Port want to secure the corridor in public hands?
The Port’s primary mission is to create economic vitality in the region. This once-in-a-lifetime investment preserves a valuable transportation asset for the region, maintains current freight rail service, and secures the corridor for potential future freight rail use supporting the region’s economy.
The Port is also interested in optimizing the use of this corridor for other transportation modes compatible with freight rail.
Without the Port’s involvement to secure the corridor, the corridor could have been sold piecemeal to private owners and lost to public use forever.
4) What are the current uses of the corridor?
Parts of the corridor were used in the last century for mining and in transporting timber. In recent years, annual freight car loads on the line have declined dramatically to approximately 900 freight car loads per year. In comparison, Seattle’s main line handles 500,000 freight car loads annually. In February, 2008 BNSF ran its last trains to the Boeing plant in Renton before removing one mile of track around the Wilburton Tunnel in South Bellevue, as part of WSDOT’s widening of I-405. The widening project is expected to be complete in late 2009.
Freight uses between Bellevue and Woodinville are phasing out.
Currently, the northern portion, located between Woodinville and the city of Snohomish, is used as a freight corridor. The Puget Sound region is highly dependent on the efficient movement of freight, and this agreement ensures that freight rail use along the northern section will continue. The Port will contract with a third-party short-line operator to continue service on the northern portion of the line; that operator is not yet selected by the BNSF.
5) What is the status of the Port’s purchase of the Eastside Rail Corridor?
The Port of Seattle, BNSF Railway and King County signed acquisition agreements in May, 2008, that will result in the Port’s acquisition and receipt by donation of the 42-mile Eastside rail corridor from BNSF. The Port and King County plan to rail-bank the southern portion of the corridor for a long-term future transportation corridor. Commercial freight use will continue on the northern section from Woodinville to Snohomish via a third-party “shortline” operator leasing the tracks from the Port.
In earlier discussions between the parties, this transaction proposed additional properties such as King County International Airport and Fisher Mills on Harbor Island. These elements are no longer viable options and are not part of the negotiations.
6) How much is the corridor worth?
Because the value of the corridor exceeds the amount being paid by the Port, BNSF will be donating a portion of the value. While the overall value is subject to an appraisal, the “acquisition and receipt by donation” results in a purchase price of $106 million for the corridor, which is expected to be valued at a substantially higher rate.
7) How do the citizens of King County benefit?
Transportation issues are of critical importance to the citizens of King County. By purchasing the corridor, the Port of Seattle ensures that it is owned by the public and available for transportation needs in the future. Without the Port’s involvement, the corridor might have been sold in small sections, fragmenting the corridor and preventing any further public use.
8) What is the timeline?
9) What is envisioned for the future of the Eastside Rail Corridor?
The section from Woodinville to Snohomish will remain in freight use under a shortline operator. BNSF will select a shortline operator prior to the close of the sale to ensure continued freight rail service to current customers. That agreement would allow the shortline operator to operate an excursion train as well. The Port of Seattle has retained a consultant to provide advice to the Port as BNSF selects a shortline operator.
A feasibility study of commuter rail, and an adjacent trail, is in progress by Sound Transit and the Puget Sound Regional Council (PSRC), under a bill (HB3224) passed by the Washington State Legislature. It includes a survey of existing studies and, a feasibility study to provide information on whether commuter rail service between eastern Snohomish county and eastern King county, can be a meaningful component of the region’s future transportation system. A report on the results will be provided to the transportation committees of the House of Representatives and Senate by February 1, 2009.
10) Does the Port of Seattle intend to be the operator of freight service or commuter rail services?
The Port of Seattle intends to limit its role to property manager. The Port does not intend to be the shortline freight operator or subsidize its operations. The Port does not have the authority to operate a commuter rail service and will look to other public transit operators for the potential to provide commuter rail service in the future.
11) What is the federal rail banking program?
The federal rail banking program allows rail corridors and their easements to be preserved through interim conversion to trail use. At the same time, rail banking preserves the line’s future for the possibility of restored freight rail use. Passenger rail is an allowed use in a preserved corridor. Acquisition of the southern corridor for the public is one of the largest and most significant in the history of the federal rail banking program.
12) Additional links:
Got a Question or Comment? Contact Us.
