The pending return of southbound rail service to the Rogue Valley brings long-awaited relief to Southern Oregon shippers, who have been forced to scramble for alternatives since Tunnel 13 partially collapsed on Nov. 17, 2003.

It’s especially good news for Timber Products’ Medford operation, which annually hauled 1,500 rail cars full of veneer from its Yreka, Calif., plant to Medford before the Central Oregon and Pacific Railroad line was closed when vandals set fire to the 3,100-foot mountain passage.

"If we could’ve wished it earlier that would’ve been our wish," says Timber Products’ regional controller Terri Haydukiwecz.

During the shutdown, Timber Products has had to feed its Medford panel operation by trucking veneer up from California.

"Rail is just a more efficient way to move product and more cost-effective," Haydukiwecz says."

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Wade Bentley, panel products general manager, who oversees operations in White City and Rogue River, says the tunnel closure affected about 80 percent of the company’s shipping.

"We get about four cars in and four cars out a week and that means we were running about 25 trucks, which adds to our freight costs," Bentley says. "We pay that out of our pocket by paying more for raw materials inbound and then eat the extra outbound costs in order to keep a customer."

Thomas Hawksworth, marketing sales manager for the railroad, says the line plans to send a train "with a bunch of empties and a few loads" on a trial run over the pass tonight.

"We want to make sure it’s good and ready," Hawksworth says. "I imagine we’ll run full freight on it Friday to see how it holds up under full service. Then, in a week or so, we’ll lift the embargo and run freight back and forth on a steady basis."

The tunnel opening removes a cloud hanging over Roseburg Forest Products, which is in the middle of the Weed, Calif., to Eugene line.

"The times that it really costs us is when it’s going the other way," says Roseburg Forest Products Vice President for Human Resources Hank Snow. "Then there is no way for us but trucks, and trucks are pretty expensive."

He says the real advantage for Rogue Valley rail shippers is when trains return from California.

"Customers want the cheapest freight price they can get and delivery on time, and sometimes this has put us several days and behind the promised delivery time," Snow says. "If we’re sitting here and can’t deliver on time and a person in Eugene can get (rail) cars, they’re more likely to get an order than we are.

"The way it’s been while the tunnel has been out is that everyone on the Klamath Falls Basin line got first shot at cars, then Eugene, Cottage Grove and down the line. This gives us some flexibility."

Because so much of Roseburg Forest Products’ production ships to California, it’s been more costly to move products through Eugene and added to delivery times. Had it not been a boom- time in the housing industry, the closure would’ve hurt even more.

"The customers wanted product, but in most cases they would wait because housing starts were up and interest rates were low," he says. "Now with interest rates starting back up, we’ll be able to service people in California better than some of the people to the north."

Although 97 percent of the local rail traffic carries timber-related products, two pear-industry firms say restored southbound access is a boon to them.

"It adds three to five days for our shipments going back to the East Coast by not having the tunnel," says Scott Martinez, sales operation manager at Associated Fruit in Phoenix. "Rail is becoming more important because there are fewer trucks and fewer drivers for the trucking lines."

Rogue Valley growers are already at a competitive disadvantage compared to Hood River and Wenatchee, Wash., area growers, who are near major railroads on both banks of the Columbia River. Martinez says Wenatchee growers have express rail service that allows their pears to arrive in New York within five to six days.

"We average anywhere from 14 to 28 days," he says. "We feel comfortable in the 14- to 15-day range, but when it gets up to 21 or 25 days, we’re biting our fingernails and hoping our product is OK. If I got five- or six-day service, I would use 50 to 60 rail cars."

In 2003, the last full season before the tunnel fire, Associated Fruit packed a dozen rail cars. He says if the restored service proves adequate, he may double his rail business in 2005.

Fruit puree manufacturer Sabroso Inc., near the rail line in south Medford, ships products east to Pennsylvania, New York and Florida, among other destinations.

The issue for Sabroso, however, is often just getting cars to load.

"It’s taken about two weeks to get a rail car," says Sabroso spokesman Brandt Rigby. "Even when we order one, sometimes it doesn’t come through because they are coming from Eugene. As the train goes through other stops sometimes rail cars get taken away even though they’ve been designated for Sabroso — someone else nabs one more than they thought they needed and we end up having to wait longer.

"We anticipate once the rail cars are coming through the tunnel again we’ll be able to get one here within two or three days. Our volume isn’t huge we do about 60 rail cars a year, maybe we’ll double within the next year."

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com