Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Rail topic
No spam. Unsubscribe anytime.
Energy Solutions negotiating sale of Oak Ridge rail line to Watco; $5.4M bridge grant status unclear
Summary
Gordon Fee, chairman of the Oak Ridge Heritage Railroad Authority, told City Council that Energy Solutions is negotiating a sale of the public rail line operating at K‑25 to Watco Holdings LLC and that a previously announced $5.4 million federal/state bridge grant remains uncertain amid federal delays.
Gordon Fee, chairman of the Oak Ridge Heritage Railroad Authority, updated the council on the authority’s operations and said Energy Solutions is in final-stage negotiations to sell the Oak Ridge short-line to Watco Holdings LLC, a private short-line operator. Fee said Watco hopes to close in February but that no final decision has been made and that many regulatory and public‑process approvals remain.
Why it matters: The authority reported roughly 130 rail cars a year in traffic—largely serving two customers—and is positioned to accept federal and state funding for infrastructure. Fee said the authority has received about $4,000,000 since 2001 and this year’s allocation of roughly $386,000 is being used to repair crossings and upgrade to 286‑pound rail standards. He also said the city and authority were notified last year of a $5,400,000 federal/state grant intended to rebuild four of five bridges on the line, but that negotiations with the Federal Railroad Administration are currently stalled and the timing is uncertain.
Details: Fee described two primary customers: a company identified as Farmall, which brings plastic raw materials for a Powell factory and accounts for about 45 cars per year, and Energy Solutions, which moves radioactive materials and will continue to maintain intermodal transfer facilities at K‑25 for those shipments. Fee said Watco would be the first Watco‑operated line in Tennessee, with an initial on‑site operating crew of three people who would run and engineer operations. He said Watco has made no decisions yet about running or supporting museum or passenger services; the Southern Appalachian Railroad Museum currently has 37 antique rail cars on site and relies on volunteers and leases for restoration revenue.
Quote: "We're running about a 130 cars a year," Fee said, describing steady traffic, and he added, "We will be the first in the state of Tennessee" for a Watco operation.
Next steps: Fee said the authority is positioned to accept grant funds should they become available and that the sale process involves public approvals. Council members asked staff and the authority to keep the council informed as negotiations and federal reviews proceed.
