California short line advances in age, makes headway with growth strategy
5/9/2022
By Jeff Stagl, Managing Editor
Not many short lines can claim a portion of their network is 140 years old or that the railroad itself soon will turn 111, but the Santa Maria Valley Railroad Co. (SMVRR) can.
On April 15, the short line marked the 140th anniversary of the Pacific Coast Railway (PCR), which is SMVRR’s branch line into Santa Maria, California, that was built by Chinese immigrants. The PCR expanded south and reached Santa Maria on April 15, 1882, then eventually ran to Los Olivos in 1887, and later branched off to Guadalupe and Betteravia.
SMVRR’s mainline was established July 11, 1911, by an English syndicate that built the track from Betteravia to Roadamite, which at the time was home to the world’s largest asphalt plant. The short line will mark its 111th anniversary on that same date in two months.
A sea captain, oilman, developer, banker, aviator, scientist, railroad engineer, businessman, musician and philanthropist, G. Allan Hancock bought the short line in 1925 and renamed it the Santa Maria Valley Railroad. A college in Santa Maria is named after him. Allan Hancock CollegeIn 1925, G. Allan Hancock — a sea captain, oilman, explorer, developer, banker, aviator, scientist, businessman, farmer, railroad engineer, musician and philanthropist who was well known in the Los Angeles area — purchased the railroad through bankruptcy proceedings and renamed it the Santa Maria Valley Railroad.
He purchased a portion of the PCR and hired Hispanic immigrants to build the west and east legs of a wye track to connect SMVRR to the PCR, and rebuilt an acquired PCR section to standard-gauge track. Hancock helped create a 29-mile system of right of way and tracks, and transform SMVRR into the nation’s busiest short line at the time.
He developed row crop vegetables that SMVRR transported and invested heavily in projects in the Santa Maria Valley. As a result, the railroad prospered by hauling sugar beets, crude oil, consumer products, industrial materials and building materials.
“The railroad grew through the Depression and was one of most profitable railroads in the western U.S.,” says Rob Himoto, SMVRR’s current president. “It stayed busy through World War II.”
Hancock even operated some trains during the war. And when SMVRR ran its last steam engine in 1962, his friend Walt Disney was on board.
After Hancock died in 1965, the railroad eventually lost its fresh vegetables, consumer products and crude-oil business. But the biggest blow was the closing of a Union Sugar Plant in 1992 that generated more than 75% of the short line’s traffic.
The railroad was lightly used after that and went through another bankruptcy since the plant closing marked “the end of its heyday,” says Himoto. Coast Belle Rail Corp. — which is partly owned by Himoto — purchased SMVRR from Hancock’s descendants on Oct. 1, 2006, and worked to regain the short line’s customers and upgrade its infrastructure.
Today, SMVRR operates a 14-mile mainline and the now 140-year-old branch line that are located about 175 miles north of L.A. and 250 miles south of San Francisco. The short line interchanges with Union Pacific Railroad in Guadalupe and provides transloading, track repair and rail-car storage services.
Taken last year, this photo shows a GP9 locomotive that’s back in service to pull longer and heavier trains with an additional locomotive. Santa Maria Valley Railroad Co.Half of SMVRR’s traffic now is generated by agricultural products, such as frozen vegetables, and the other half is generated by industrial materials, including lumber, drywall, plastics and liquid propane gas.
“At first, customers used the railroad as leverage against trucks and moved 10% to 30% of their freight by rail. But we’ve had a resurgence in the past 10 years or so,” says Himoto.
SMVRR officials worked to convince shippers to move more of their cargo via the short line, and now a half dozen of the railroad’s customers transport 90% of their cargo by rail, he says.
About four years ago, the short line developed a transload facility — Osburn Rail Yard — to attract shippers that aren’t located along the railroad’s lines. It features more than 2,000 feet of track and serves six transload customers.
Since transload business continues to grow, SMVRR plans to expand the transload yard from 8 acres to 28 acres over the next three to four years, says Himoto.
“We are also addressing the tired railroad because of growth,” he says.
To that end, the short line has obtained state grants exceeding $800,000 to help fund mainline upgrades. SMVRR will replace 90-pound rail with 136-pound rail and replace two of every three ties along the route. The work is expected to cost about $3 million and take two to three years to complete due to limited funds, says Himoto.
“We will go after more grants,” he adds.
SMVRR’s future plans include the potential of operating commuter trains to and from Santa Maria to Guadalupe, Grover Beach, San Luis Obispo and Paso Robles. The valley’s population is growing and there is only one major freeway in the area.
“There have been regional talks about us providing passenger-rail service to relieve traffic congestion,” says Himoto. “We are open to it if it would be profitable for us.”
SMVRR has a partial history with passenger rail. During WWII, the railroad was used to transport pilot cadets to a nearby military base.
The short line also offered dinner excursions as recently as 12 years ago and is considering a revival of that business. The excursions previously were a big tourist draw.
But to grow as anticipated, SMVRR needs help from local governments. Santa Barbara County’s largest city, Santa Maria worked with the county to change zoning laws in 1992 after the sugar plant closed to favor more residential housing. The short line needs more industrial zoning to expand, says Himoto.
“That’s our biggest hurdle to future growth,” he says. “We need to change the mindset and embrace a transportation system with a rich history that has the keys to future economic growth, environmental prosperity and a better quality of life for the city.”