IRON ORE ROADS DAVE SCHAUER
Iron Ore Demand Soft
With global steel production weak and iron ore prices falling, a number of operations have curtailed production. Cliffs Natural Resources has filed for restructuring protec- tion covering its troubled Bloom Lake mine in Quebec. The mine has transitioned to care and maintenance status. The last shipment of iron ore out of the Port of Sept-Iles was to be completed in early January 2015. Gogebic Taconite located near Mellen in northern Wisconsin has cut back on explora- tion and planning for a large new mine in that area. Additionally, Mesabi Nugget in north- ern Minnesota announced a six-to-eight week hot idle shutdown in January due to excess supply of their specialized iron nugget prod- uct. Canadian National handles the nuggets from this plant and would also be the carri- er for any ore shipped from Gogebic Taconite should that mine ever become a reality. In January, U.S. Steel announced their
Fairfield mill near Birmingham, Ala., will remain idle for an indefinite period due to excess inventory and lower demand for oil and gas drilling pipe. BNSF handles unit ore trains from Keewatin Taconite near Nash- wauk, Minn., to the mill. With mill operations suspended, BNSF has stored hopper cars typically used for this move, including two sets on the North Shore Scenic Railroad near Duluth, Minn. This tourist railroad typically stores coal cars during the winter, but this is the first time it has been called on to store cars used in ore service. On a brighter note, Magenation’s Plant 4 mine near Coleraine, Minn., began production ahead of schedule in late December. Ore from this operation is moved by BNSF and CSX to a new pelletizing plant at Reynolds, Ind., for eventual delivery to AK Steel mills in Middletown, Ohio, and Ashland, Ky.
Northshore Mining
As of early February, Northshore Mining had yet to receive two CEFX SD9043MACs that have ended their lease to BNSF. The arriv- al of the two units has been reportedly de- layed due to legal details being worked out on the lease agreement. Due to mechanical issues with some of its SD40-2 and SD40-3 fleet, NSM activated former Reserve Mining SD18 1231, which saw limited use on main- line trains. In January a smaller pellet line was idled to adjust production so the railroad isn’t running a full schedule of four trains per day, with some days only having two or three mainline ore moves between the mine at Bab- bitt, Minn., and the plant at Silver Bay.
Cliffs Erie
As reported in the last issue, former Erie Mining F9As 4210 and 4214 were sold to an unidentified buyer while the three remaining F9Bs (4223, 4224, and 4225) were scrapped during December. The purchaser of the F9As has been identified as Indiana Boxcar (IBCX),
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which will use the pair on its Vermillion Val- ley Railroad located near Danville, Ill. As of late January, the two F-units had not yet de- parted Minnesota.
Canadian National
In late December 2014, former Dulu- th, Missabe & Iron Range maroon and gold SD38-2 215 (ex-B&LE 892) was spotted work- ing the E-Lead Switch at Proctor, Minn. This veteran EMD had been out of service at Proc- tor for a few months and is one of only two maroon and gold units remaining in service on the former Missabe, with DM&IR SD40-3 403 being the other.
REGIONALS/SHORTLINES WEST GARLAND MCKEE
Turned Down in Re- quest to Reactivate Rail
Ballard Terminal
It would appear that Ballard Terminal’s long fight to restore freight service over a portion of the Woodinville Subdivision is over. On De- cember 30, the Surface Transportation Board turned down Ballard Terminal Railroad’s re- quest for authority to reinstitute rail service on 11.2 miles of the ex-BNSF Woodinville Subdivision owned by the City of Kirkland, the Central Puget Sound Regional Tran- sit Authority, and King County, Wash. The line is currently subject to interim trail use/ rail banking under the National Trails Sys- tem Act. This is the second time a railroad has been turned down for part of this line, as shortline GNP was turned away in 2010 when it tried to reactivate a portion on the line. BNSF abandoned the line in 2008 and it was purchased by the current owners under the Interim Trail Use provision (a.k.a. rail- banking). During the abandonment proceed- ing, King County filed a request for a Notice of Interim Trail Use (NITU) for interim trail use/rail banking on the Woodinville Subdivi- sion pursuant to the Trails Act. Subsequent- ly, BNSF entered into an interim trail use ar- rangement with King County, which became the trail sponsor. Under the Trails Act, the trail sponsor agrees to assume managerial, tax, and legal responsibility for the right-of- way and develop a trail, but does so subject to possible future reactivation of the right-of- way for rail service by the abandoning rail- road or by any other approved rail service provider.
In a related and somewhat odd proceeding,
King County requested and received authori- ty to acquire BNSF’s residual common carrier rights and obligations with respect to the line, including the right to reactivate rail service. As such, the Surface Transportation Board authorized King County to simultaneously serve as the trail sponsor and hold the right to reactivate rail service. In response to con- cerns that, under these circumstances, King County might have no intent to restore rail service should there be a demand for it, the Board explained that the right to reactivate rail service on a rail-banked line was not an
exclusive right for the abandoning railroad or its successor residual rail carrier, and that another bona fide petitioner could seek to reactivate the line under appropriate circum- stances.
In a third proceeding, the physical assets of the rail corridor were authorized to be con- veyed to the Port of Seattle, which in turn conveyed them to the above-mentioned “Re- gional Parties.” As a result, the Port no longer holds any property interests in the line. On April 2, 2013, Ballard Terminal Rail- road filed a petition so that it could obtain authorization to acquire the residual com- mon carrier rights and obligations on the line, including the right to reinstitute freight rail service and to acquire the line’s physi- cal trackage assets. On August 1, 2013, the Board issued a decision denying Ballard’s motion for a preliminary injunction, allowing Kirkland to remove the track. In its final De- cember 30, 2014, ruling, the Surface Trans- portation Board said that Ballard Terminal had failed to show that it has sufficient fi- nancing, and has also failed to demonstrate that there is a credible demand for renewed freight rail service.
Commissioner Begeman dissented with a
separate statement. “Although the Board is not often asked to turn a rail-banked trail back to rail service, the circumstances surrounding this rail-banked line are unique. The Board previously took the unprecedented step of al- lowing King County, the noncarrier trail spon- sor, to acquire BNSF’s residual common carri- er rights and obligations on the line, including the right to reactivate service. As a result, King County may have little or no incentive to help return this line to service, despite the underlying purpose of the Rails to Trails Act. Therefore, the Board has a particular obliga- tion to ensure that the proponents of rail ser- vice are given the utmost consideration. Unfor- tunately, I do not believe that has occurred.”
Bogalusa Bayou is Geaux Geaux Railroad
Here’s a bit more on Watco’s new Bogalusa Bayou Railroad. Bogalusa Bayou will operate under the name Geaux Geaux Railroad and will take over switching duties at the large International Paper Bogalusa, La., plant. Bo- galusa Bayou will be the owner of 21.95 miles of track consisting of two connecting lines be- tween milepost 0 at Slaughter and milepost 9.69 at Zee, and between milepost 345.84 at Slaughter and mile 358.10 at Maryland in East Baton Rouge Parish, La. Bogalusa Bay- ou will acquire trackage rights over one mile of the Illinois Central Railroad between mile- post 68.85, at Leescreek and milepost 69.85, at Bogalusa, so as to interchange traffic at Illinois Central’s Baton Rouge yard.
Missouri North Central
Motive Rail, Inc., (d/b/a Missouri North Cen- tral Railroad), has filed to operate, pursuant to a track lease and an operating agreement, approximately 9504 feet of track presently owned by the Sault Ste. Marie Bridge Com- pany extending between milepost 24.5 and
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