The railroad: Asset or liability?

 

February 16, 2023



DAYTON-The Port of Columbia Board of Commissioners’ meeting on February 8 was followed by the second of several workshops planned for reviewing the Comprehensive Plan with consultants from Maul, Foster, and Alongi, Inc. In addition, major updates on broadband progress.

During the workshop on the Comprehensive Plan, there was discussion about the Columbia Walla Walla Rail asset. Reps from the consulting firm emphasized the value in the owning the rail including for its right-of-way. While acknowledging there are costs involved in owning the line, there is also more funding becoming available for rail infrastructure and economic development. Another possibility is adding lease requirements for investment. Presently, the agreement is the operator oversees maintenance and the Port is responsible for high costs of rehabilitation.

Commissioner Chair Seth Bryan said, “I believe that working a good condition, functioning rail line is a very valuable asset to a community. Ours is not that. It’s an asset, yes, because we do have it leased and yet it needs a lot of work and I think our last estimates were around $31 million. So, is it an asset or a is it a $31 million liability?” He went on to acknowledge that funding is becoming more available but questioned whether the Port would want to focus on other areas. He expressed uncertainty about whether the Port could secure that much funding which he thought has likely increased due to inflation when the operator could take that on.

If the operator was the owner, it would improve his business negotiations and he would have more reason to invest in the maintenance and rehabilitation of his asset, said Bryan. He added that the value for the asset may be better held by a private owner who would have less restrictions than the Port.

Dickinson indaicated she is not aware of any information whether it would be more beneficial or not if the line was owned privately. The consultants said they would investigate more into funding possibilities for the rail, as well as the benefits of selling or retaining the asset to discuss at the next workshop following the March 8 meeting.

Dickinson said that materials are coming “in droves” for phase one of the broadband project to bring fiber into the City of Dayton. The contractor is locating and painting where the underground fiber will go and has submitted plans to the City of Dayton and the County. Requests for bids have been advertised to build the electrical system inside of the colocation center. Construction is anticipated to begin within the month.

A few RFPs have been advertised for phase two for the Touchet Valley broadband extension project. Multiple bids are anticipated to be presented for approval by Commission in March for the project. Phase three is the plans to extend the broadband to the rest of the county. A local action team that has been in formation for several years is meeting to draft plans for the extension. Also, the Rapid Design Study paid for by the Washington State Broadband Office who is contracting with Breaking Point Solutions will prepare as many as six designs for bringing the service to other areas of the county. The study will include a cost estimate for bringing fiber or a hybrid model with fixed wireless to residences. “I think we could get broadband to everybody in Columbia County,” Dickinson said, “if there is enough money.”

 
 

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