After months of stalled negotiations, the Santa Cruz County Regional Transportation Commission has moved to end its operating agreement with Progressive Rail Incorporated on the Santa Cruz Branch Rail Line, a step the agency says will help advance the Coastal Rail Trail and preserve existing freight and excursion train service.
The RTC issued a notice of termination of its Administration, Coordination and License Agreement with Progressive Rail, which currently serves as the common carrier on the RTC-owned rail corridor.
RTC Executive Director Sarah Christensen said the agency had tried to reach a deal that would allow freight service to continue while also moving forward with an interim rail trail project.
“The RTC has worked in good faith to reach a cooperative solution that would allow continued freight service while also advancing a safe and accessible rail trail for our community,” Christensen said in a prepared statement. “Unfortunately, Progressive Rail has been unwilling to find a workable path forward while making unrealistic and unattainable demands in exchange for their cooperation.”
The RTC said the termination is intended to clear a path for near-term work on the Coastal Rail Trail, with long-term plans for passenger rail, while keeping freight deliveries for three existing customers in Watsonville.
After the agreement ends, the RTC will become the common carrier for the portion of the line not actively used for freight, the agency said. The RTC said it is soliciting proposals from qualified rail operators to continue Watsonville freight service.
Christensen also said the agency does not plan to change recreational excursion rail operations by Roaring Camp Railroads on the segment used by the Beach Train.
“There is no intention of changing or discontinuing this service,” she said.
The RTC cited several reasons for terminating the contract, including what it described as Progressive Rail’s lack of cooperation in advancing the interim rail trail, failure to fulfill maintenance obligations that led the RTC to cover costs with public funds, and obstruction of efforts to expand community use of the corridor.
The agency also said it needs to move forward with trail implementation “without railbanking or adverse abandonment” and protect about $120 million in grant funding tied to delivery of the rail trail project.
The RTC said next steps include selecting a new operator for Watsonville freight service and completing required filings to become the common carrier north of Watsonville.
