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The Watco Cos. Inc. and Washington State Department of Transportation (WSDOT) recently signed a memorandum of understanding under which that state will purchase a Palouse River & Coulee City Railroad (PCC) line from the short-line holding company to maintain service.

The sale of the “CW” line, which extends more than 300 miles between Coulee City and Spokane, marks the first time the state will own a rail line serving agricultural shippers and the end of two years of negotiations between Watco and WSDOT.

In 2004, the state purchased two of PCC’s three branch lines: the Marshall-to-Pullman “P & L” line and Hooper-to-Thornton “PV Hooper” branch. Watco will continue to operate all three branch lines until May 31.

WSDOT will seek a company to assume operations of the CW and P & L lines after May 31. Watco will continue to operate the PV Hooper branch per the terms and conditions of an existing operating agreement with WSDOT.