Representatives from Genesee & Wyoming’s Portland & Western Railroad and the Oregon Department of Transportation told the South Dallas Urban Renewal and Economic Development Commission on Thursday that the branch of track running through roughly 40 acres of industrial land in Dallas is out of service but remains a potentially valuable asset if a rail-dependent customer can be found.

The commission heard that the track is about 2 to 3 miles long and that Portland & Western (P&W) has placed railcars on the property in recent years. “The track is currently out of service, but we do currently have railcars out on that property,” said Renee LaSapio, a Portland & Western customer-relations representative. Mike Ewan, an industrial-development manager with Genesee & Wyoming, said restorations are possible if a customer commits to sufficient rail volume and that P&W can and will invest capital in the right deal.

The discussion came after the commission’s staff introduced guests and asked the rail and state officials to outline the constraints and opportunities for reactivating the line. “A site like the former warehouse or mill is a perfect example of large industrial properties that we can develop for that,” Ewan said, describing the kind of manufacturing or distribution tenant that would most likely use rail service.

Why it matters

Commission members and local owners said the property’s proximity to rail is rare in Oregon and could support higher-paying jobs and industrial investment. Attendees warned, however, that if the corridor is left unused it could be lost to other buyers or non-rail development — and once rail capacity is removed it is unlikely to return.

What was discussed

Capital and partners: Rail operators described a typical approach: P&W can contribute capital to restore track, but must get assurance through a volume commitment or a large anchor customer to recover its investment. P&W representatives said their shortline scale means each carload generates less revenue than class-I carriers, making big capital investments dependent on a substantial customer commitment.

Class I involvement: Union Pacific and BNSF were repeatedly referenced. P&W and commission members said class-I carriers sometimes will consider a contribution, but it depends on the commodity and whether the prospective customer aligns with the major carrier’s commercial priorities. “They might have an initiative to grow a particular portfolio of business,” said a P&W representative, referring to UP. Commissioners were told UP’s likely contribution would be modest unless the customer and commodity fit a strategic target.

Cost estimates and components: Multiple speakers offered ballpark figures and line-item guidance from recent inspections and industry practice. P&W and ODOT officials said restoring the subdivision to a low-speed operating condition could range from high six figures toward approximately $1 million depending on how much work is needed. Specific elements mentioned included:

- Track length: roughly 2–3 miles.
- Tie work: an estimated one-third of ties per mile might need replacement (roughly 1,000 ties per mile); per-tie installation costs were discussed in the range of about $100–$120 each.
- Turnouts (switches): a single turnout was estimated at roughly $150,000–$200,000.
- New industry trackage: roughly $200 per foot was offered as a ballpark figure for new spur trackage.
- Typical anchor-customer volumes discussed ranged from several hundred to a thousand carloads a year; a minimum parcel size to support a single anchor was estimated at about 20–25 acres.

Funding programs and permitting: Robert Melbo, a state rail planner with the Oregon Department of Transportation, flagged the Connect Oregon grant program as an established funding source for projects such as track rehabilitation. “It typically requires about a 20% match on the part of the railroad, and then you get an 80% grant for the rest of whatever the project is,” Melbo said. He cautioned that Connect Oregon grant reviewers generally look for a demonstrated customer or business case rather than a speculative “build it and they will come” application. The discussion also referenced DEQ and SEPA as permitting points for customers with environmental or water/utility questions.

Local concerns and trade-offs: County and commission members warned against leaving the site in indefinite limbo while waiting for a single “big fish” tenant, describing prior local experiences where large users left and private owners repurposed rail-served land for nonrail uses. “We need to fish or cut bait,” said Brian Dault, a commission member, summarizing concerns about holding the property off the market for long-term rail prospects.

Next steps and deliverables

Commission members and the property ownership group agreed to request a refined, written cost estimate of what it would take to restore the line to low-speed service, including a clear breakdown for ties, ballast, surfacing, switch work and an outline for how crossing costs might be estimated. P&W agreed to produce a preliminary estimate and to run an inspector over the line to refine the numbers. City staff said a TGM planning report is near completion and will be shared with the committee at the next meeting; Michael Ewan and P&W staff said they would aim to deliver a ballpark cost estimate in time for the commission’s next meeting.

No formal vote was taken to require the estimate; meeting participants described the item as an agreed next step and part of ongoing marketing and engineering work.

Ending

Speakers emphasized the scarcity of large rail-served parcels in the region and urged a dual approach of active marketing while producing concrete engineering cost estimates and permitting pathways to make the site more competitive in state and national site-selection processes.