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Last week, the Oregon Economic and Community Development Commission approved $12.6 million in bridge loans that will enable the Oregon International Port of Coos Bay to purchase a line from the Central Oregon & Pacific Railroad Inc. (CORP).

The port plans to purchase a 111-mile segment of the Coos Bay Line between Danebo and Cordes, Ore.

“This rail line is critical to the future economic stability for the Southern Oregon Coast,” said commission Director Tim McCabe in a prepared statement. “This bridge loan is important because of the timeline imposed on the purchase of the line.”

In November 2008, the Surface Transportation Board (STB) provided the port an opportunity to purchase the line for $16.6 million, but ruled the transaction must be completed with CORP by Feb. 18, 2009. On Feb. 6, the port and CORP filed a petition with the STB seeking an extension of the closing date to March 13. However, they recently withdrew the petition and will continue to work toward a final agreement on closing documents as soon as possible.

In September 2007, CORP closed the Coos Bay Line because the short line determined three tunnels posed a safety risk to operations and were too costly to repair, and the line's traffic had declined significantly. The state then fought CORP’s and parent RailAmerica Inc.'s plan to close the line permanently and encouraged the STB to accept the port’s proposal to purchase a portion of the Coos Bay Line.