Oregon Rail Users League Salem, Oregon Tuesday, September 17, 2013 The Coos Bay Rail Line . . . Serving Southwest Oregon and the Coos Bay Harbor Operated by ARG Trans Inc. as the Oregon Rail Users League Salem, Oregon Tuesday, September 17, 2013

Timeline of Events … CORP/RailAmerica Inc. embargoed the Coos Bay rail line September 21, 2007 Port staff consulted cities, counties, shippers, state and federal officials to assess need for, interest in, support of regional freight rail service and efforts to secure rail corridor Port filed Feeder Line Application with the STB July 11, 2008

Timeline of Events … (continued) December 2008 STB decision allowed Port to buy line for $26.6 million; Port appealed; STB set price of $16.6 million Port acquired major portion (111 miles) of Coos Bay line from RailAmerica March 13, 2009 Financing included converting ConnectOregon I grant of $4 million and federal SAFETEA:LU grant of $7.2 million into grants to buy the rail line; funds originally intended for Phase II rehabilitation of Coos Bay swing-span rail bridge Port took on $5.4 million in debt from Oregon Business Development Department; due 2014; may be deferred 2018

Rail Assets and Investments • Port District owned the Coos Bay swing-span rail bridge and North Spit Rail Spur Port acquired Coos Bay rail bridge in 2001 – $6.7 million investment state and federal funds North Spit Rail Spur built in 2005 to provide freight rail access to industrial sites – $4.8 million investment

Coos Bay Rail Line… acquired from CORP/RailAmerica, Inc Coos Bay Rail Line… acquired from CORP/RailAmerica, Inc. Danebo Junction (west Eugene, Lane County) to Cordes (North Spit, Coos County) 111 miles of rail line, including two major swing-span bridges – Siuslaw and Umpqua, nine tunnels and 115+/- other water crossings; acquired March 2009

Coos Bay Rail Line… acquired from the Union Pacific (UP) Railroad Cordes (North Spit) to Coquille - Coos County 23 miles of main line, including rail yards in North Bend and Coos Bay, variety of water crossings, and the Coos Bay depot; acquired December 2010

Coos Bay Rail Line … restoration of freight rail service Primarily goal following acquisition of line was restoration of freight rail service as competitive transportation option Port published Request For Qualifications for operator; evaluated responses; entered into agreement with ARG Trans Inc. 2nd quarter of 2011.

Coos Bay Rail Line … rail infrastructure rehabilitation funding American Recovery & Reinvestment Act (ARRA) 2009 $2.5 million for tunnel rehabilitation 2009 Oregon Legislature – House Bill 5054 $3.5 million for rail infrastructure rehabilitation – $1 million dedicated to tunnel rehabilitation – $1 million match for TIGER II grant – $286,000 match for SAFETEA:LU grant 2010 ConnectOregon III grant $7.8 million for rail bridge/trestle rehabilitation 2010 SAFETEA:LU multi-modal pilot program grant $2.5 million for Chemonite/ACZA-treated rail ties 2010 TIGER II grant $13.5 million for track rehabilitation; some tunnel work 2009/2010 Funding Total: $29.8 million

Coos Bay Rail Link – CBR service restoration and current service levels Freight rail service was restored in phases: October 2011 - service restored Eugene to the North Spit; CBR moved 194 revenue loads 4th quarter 2011 October 2012 – service restored to Coos Bay yard; CBR moved 2480 revenue car loads for 2012 April 2013 – service restored to Coquille; CBR revenue car loads for 1st and 2nd quarters – 2087 Current train schedules: 3 train starts per day; five days week

Coos Bay Rail Line … track infrastructure; mainline and branch lines The goal of track structure rehabilitation is to increase operating efficiency of railroad by upgrading track classifications and train speeds: FRA (Federal Railroad Administration) Track Classifications and train speeds Excepted: <10 mph • Class 1: 10 mph Class 2: 25 mph • Class 3: 40 mph Main line – Danebo to Cordes will operate at a mix of Class 2 (25 mph) and Class 3 (40 mph) Tunnels, swing-span bridges: Class 1 (10 mph) Yards, spurs, industrial leads: Excepted (< 10 mph)

Coos Bay Rail Line Shippers … Port staff maintains regular communications with former shippers and future partners … Roseburg Forest Products / Coquille (plywood) Georgia-Pacific – Coos Bay Sawmill Oregon Resources Corp. / mineral sand commodities Southport Forest Products Ferrell Gas and AmeriGas propane distributors American Bridge Manufacturing (Bolon Island/Reedsport) Roseburg North Spit Woodchip Export Ocean Terminals Coos Bay Docks Swanson Bros. Lumber Co. (Noti) Swanson Group (Noti) Rosboro (Vaughn) Various commodity distribution facilities and rail transload/reload operations

Coos Bay Rail Line … 2013 legislative session $10 million for continued rehabilitation of three swing-span bridges HB 3276: Clarified that property in Coos, Douglas and Lane counties owned by the Port of Coos Bay is not subject to taxation

Tunnel work … Dirty, Wet and Dangerous

Tunnel work … Dirty, Wet and Dangerous

Bridges, Trestles and Culverts …

Track Structure … Rail, Ties and Ballast

The Coos Bay Rail Line will operate as the …

Coos Bay Rail Line … Follow our progress at www.portofcoosbay.com Questions? Comments. Thank you for your attention