SANTA CRUZ, Calif. - Cement manufacturer Cemex, long the region's largest shipper of goods by rail, is asking federal regulators to stop a new railroad operator from taking over the local Union Pacific rail line -- at least until the new operator makes a greater commitment to freight service, the Santa Cruz Sentinel reports.
In a motion filed Wednesday with the federal Surface Transportation Board, the cement company raises concern that county efforts to buy the railroad and possibly build a recreational trail there could disrupt trains from running to and from its Davenport plant.
"Cemex's attempts to confirm that continued freight operations will be protected have not been successful," the motion reads. The motion, filed by Washington, D.C., law firm Thompson Hine, asks regulators to seek more information about the future of the line before allowing any change of management.
Cemex officials did not return phone calls Thursday, nor did regulators at the Surface Transportation Board.
On Dec. 31, Union Pacific is scheduled to hand over freight and maintenance responsibilities on its 32-mile line to Woodland-based Sierra Northern Railway. Union Pacific is in negotiations to sell the line, which runs between Davenport and Watsonville, to the county for $14.2 million, but the sale is not expected to go through until at least March.
Union Pacific representatives declined to speak with the Sentinel this week. But officials with the county Regional Transportation Commission said Thursday they had every intention, once they buy the line, of continuing freight trains, likely with Sierra Northern remaining the operator.
"The Transportation Commission does not want to take the freight service off the rail line," said the commission's deputy director, Luis Mendez. "If there's a potential for putting a trail on the line that would work then we want to do that as well."
The Cemex plant in Davenport has been idle since March because of a lagging demand for cement. But during "normal operations," the facility receives or ships roughly 3,000 train cars a year, according to Wednesday's motion.
The company brings in coal to fuel its kilns and sends out cement.
The company's motion also takes issue with the lack of information about possible passenger trains on the line, which Cemex suggests could get in the way of freight trains. The county has entertained the idea of passenger service, and Sierra Northern has expressed interest in tourist trains.
The motion additionally raises concerns about hauling fees under the new operator.
Sierra Northern President Dave Magaw corroborated the county's commitment to accommodating Cemex.
"If the pricing of the freight is such that we don't ship, we shoot ourselves in the foot because that's how we make a living," he said. "We'll do everything possible to make sure their freight ships."
The Surface Transportation Board signed off on Sierra Northern as the operator last week but retains authority to halt the deal.
(This item appeared Dec. 28, 2009, in the Sentinel.)
