Category Archives: Rail

Is a New West Coast Container Port Needed? The Coos Bay Dilemma

Coos Bay, OR, USA is pushing for a new West Coast US container port. It will have rail to the port, so that transloading can take place directly to it.

The port planners see a need for another West Coast port of entry for Asian containers that will reach inland via intermodal rail as far as Chicago. The Oregon International Port of Coos Bay has obtained a $25 million grant for pre-planning and pre-construction. The grant will be matched by $25 million from NorthPoint Development, and will be used for environmental review and preliminary engineering activities.

The map below shows why environmental concerns might be considerable. Coos Bay is a small town that’s long been a Mecca for beachgoers and people who love the coastside style of living. A friend moved there from Santa Rosa, in the Bay Area, for that reason.

Google Map of Coos Bay, OR. Red square shows the approximate location of the new container port.

You can see on the map that ingress is through a small strait, with a narrow bay running northward to the Coos River. The port will be on the barrier island, just below another industrial site, a sawmill, according to the planning material. Its projected capacity will be 2 million TEU, or one million forty-foot containers per year.

That’s quite a few. It’ s only a bit smaller than the Port of Oakland, in CA, which runs about 2.5 million TEU per year. And it dwarfs the container traffic at the Port of Portland. However, Portland specializes more in automobiles, and grain and minerals bulk. If the port runs at 60% capacity, a reasonable figure for international container ports, that would be 1.2 million TEU per year, or 500,000 forty-foot units.

It’s not a bad idea, geopolitically, to have another West Coast port for containers. It’s a relief valve for the big California ports, which are subject to periodic longshore union strikes and other potential disruptions. Those ports are also major sources of pollution.

The all-rail connection should also make air pollution less of a problem. Perhaps the port can prevent local drayage from causing mammoth traffic and air problems in this pristine area.

Notice Charleston Marine Life Center at the entrance to the strait, a branch of the University of Oregon. Below is a photo of a Dungeness Crab, a local resident; delicious and protected from overfishing. Dredging, which the plan says is necessary, may threaten marine species nearby.

Boxes will move via a short line, Coos Bay Rail Line, owned by the port. It runs north from the peninsula about 137 mi, terminating near Eugene OR at the Union Pacific line. That provides access by rail to all of the central US. And if the UP/NS merger comes to pass, it will provide a single transfer access even to the Northeast US and even Europe. That provides access by rail to all of the central US. And if the UP/NS merger comes to pass, it will provide a single transfer access even to the Northeast US and even Europe.

It’s not clear that more capacity is needed on the West Coast of the US, particularly if interntional maritime trade is resetting and the Asia-US container movements are declining.

Evidently East Coast container traffic is also in decline.

We see a report today of Charleston, on the US East coast, shutting down a 700,000 TEU capacity terminal, Leatherman, because of low demand. It only processed 75,455 containers so far this year. The final capacity of Leathrman Terminal when built out is planned to be 2.4 million TEU. A second berth construction project is being continued. The planned rail yard adjacent to Leatherman, a $690 million project, is being suspended.

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Trains.com Staff Wednesday, June 24, 2026

https://www.freightwaves.com/news/oregon-port-oks-federal-rail-grant-agreement-for-multimodal-project

Jun 25, 2026 4:59 PM by The Maritime Executive

https://maritime-executive.com/article/charleston-pauses-operations-at-new-terminal-citing-low-volume-high-costs

CSX Rail Projects boost intermodal

The CSX (NASDAQ: CSX) first-quarter financial report was very positive. It showed over 5 percentage points improvement in the operating ratio, to 64%. Operating ratio is a metric much watched in the rail industry, as it shows how efficiently the line is moving and using equipment. The formula for calculating the Operating Ratio is:

OR = 100 * Operating Expenses / Operating Revenue

What it Covers: Operating expenses typically include fuel, labor, equipment maintenance, and materials. It does not include taxes, interest, or other non-operating costs. In particular it doesn’t cover capital improvements to the rail line and equipment.

The industry benchmark for this ratio is in the low 60s or even high 50s, when the so-called “Precision Scheduled Railroading” (PSR) strategy is in place. Invented by Hunter Harrison, at the Illinois Central Railroad, PSR began as a series of ‘lean operations’ improvements including speeding up interchange of equipment, and making sure trains interacted on time and customer loads were routed to meet committed schedules the customers expected. His last stop in leading several railroads was at CSX.

As the concept evolved, cost-cutting became the mantra, and this was realized in the adoption of operating ratio as the measure of success.

But modern implementations of PSR-like concepts have included running longer trains on more spaced-out schedules, reducing crew sizes, lengthening crew working hours, reducing rail staff such as inspectors and conductors, reducing the amount of equipment used such as locomotives, adjusting safety and inspection standards to less frequent review, and using more automated inspection equipment and fewer human inspection hours. Some of these actions are not consistent with the original Hunter Harrison practices, especially when pushed to limits.

There have been protests from rail unions over practices that reduce rail staff and compromise train safety. Some of these have surfaced at major accident sites such as the derailment and toxic spill at East Palestine, OH in 2023, where defect-detection technology failures and lack of human inspection were implicated in the accident. The rail involved was Norfolk Southern (NS).

Intermodal freight increases were instrumental in the financial good tidings presented in the report. And with fuel prices escalating, intermodal should be the go-to choice for shippers looking to reduce their exposure to rising fuel costs. Intermodal freight can replace many highway trucks, and save lots of fuel. More intermodal shifts are required than for straight trucking; but for longer movements, intermodal has been a winner for a while.

To me the most interesting feature of the report is the pending completion of a new double-stack tunnel and bridge clearance project between Baltimore and Philadelphia. The map below indicates the location of project elements.

A key element is the Howard Street Tunnel project. This capital project allows CSX to run double-stack intermodal trains from Baltimore to Philadelphia, and beyond. It opens the Northeast to improved rail-container traffic from Southeast ports. This will improve transit times for shippers. The project is a capital project, and its cost is not reflected in the operating ratio, but represents CSX making investments of its surpluses in infrastructure that will improve service both long-term and short-term. Especially now, with fuel prices at highs and going up, customers will have a more reliable and sustainable alternative to trucks.

CSX also made improvements in its intermodal terminals and interchange in the Chicago area, removing bottlenecks of long standing at the Barr Yard. Chicago has been a bottleneck for East-West transfer for many years, and relieving it should have been a major priority for years. CSX’s action is important because of potential competition with the potential merged rail UP (Union Pacific) and NS, which will create a coast-to-coast national rail service with more leverage to eliminate its bottlenecks.

Trains.com Staff·Wednesday, April 22, 2026

https://www.freightwaves.com/news/csx-sees-stronger-first-quarter-earnings-as-costs-fall-volume-rises

Pacific-Atlantic Rail Link: A Game Changer for China-Brazil Trade

The announcement of an agreement to build a Pacific-Atlantic rail link across South America is important to global commerce. If it actually succeeds, it would allow many goods to skip the Panama Canal in transit from Brazil to the Far East, including China.

The idea seems to be a combined intermodal and bulk rail line from the East Coast of Brazil to Chancay Port in Peru.

China of course imports bulk grain and oilseed cargoes from Brazil. Brazil also is home to some manufacturing which might be cheaper than Chinese manufacturing has become. And Brazil consumes many manufactured goods now as the country develops. China is an ideal source for these.

It’s called the “Two-Ocean Railway”. It should cut the China-Brazil trip to 10 days.

China is already investing $1.3B in Chancay Port in Peru. This railway will create guaranteed demand for the port’s capabilities.

In the light of President Trump’s tariff machinations and his threats surrounding the Panama Canal, it’s wise for the Chinese to create an alternative.

Brazil and China are an ideal trading pair to show comparative advantage at work; each nation produces what it’s best at, and trades for the other goods. The result produces lower costs for both parties, even including transport costs.

Katherine Si, China Correspondent July 15, 2025

https://www.seatrade-maritime.com/ports-logistics/china-and-brazil-plan-pacific-and-atlantic-rail-link