(Matt Wiederholt | Photo by Kristine Thomas)
What do a plastic pipe manufacturer, a lumber company and an oil manufacturer have in common? They all require railroad services to receive supplies and to ship their products to remain competitive in their industry. Through different routes, 50 companies have discovered the advantages of working with the City of Prineville Railway.
Midge Graybeal had 24 requirements that needed to be met to locate her company, Krah USA LLC. The property had to be shovel ready, have a large building ready to move in, and most importantly, have a rail dock. “We produce HDPE plastic pipes used in irrigation, agriculture, wastewater, water, oil, gas and more that range from four inches to 72 inches and potentially to 196 inches in diameter,” she said. “We needed a place where we could load the pipes directly onto a railcar and deliver to our customers.”
Graybeal found exactly what she was looking for in Prineville, where she signed a lease with the city in March of 2020, moved into the building in July and started manufacturing pipes in December. The pipes are shipped to customers throughout the U.S. “We couldn’t operate without the railway,” Graybeal said. “We have a railroad spur right by our building. We couldn’t have asked for better partners than the city of Prineville who worked with us along the way to keep manufacturing jobs in rural America.”
Matt Wiederholt is the general manager for the City of Prineville Railway (COPR), a customer oriented short line railroad operating in Central Oregon between Prineville and the Prineville Junction. Formed in 1918, the COPR’s line is the oldest continuously operated municipal short line in the United States. Trains can travel 20 miles an hour on the 18 miles of track from Prineville to Redmond, where they connect with the Burlington Northern Santa Fe and the Union Pacific Railroads at Prineville Junction.
Wiederholt said the railroad’s success has been its ability to grow and change to meet the demands of the businesses in Prineville and Crook County. There is a railroad volunteer committee that oversees the railroad and makes decisions that they report to the city manager. “In the 1960s, the railway was hauling timber for the seven sawmills in Prineville,” he said. “When the sawmills began to shut down, the railroad began losing revenue and had to survive on its savings. There was a time when it was being considered to mothball the railroad, but fortunately people realized its economic benefits and found new ways to use it.”
Wiederholt moved back to Prineville 16 years ago after working in the timber industry. He started part-time loading railcars and eventually worked his way to be general manager. There are a total of four employees at COPR.
In 2009, they had one customer. Today, they have 50 customers who use the 130,000 square feet transload facility. “Our business model includes storing and repairing railcars, shipping and receiving products and storing products to be shipped,” he said.
Wiederholt said the railroad is self-sufficient, meaning it does not receive any financial support from the City of Prineville. “The railroad is key to Prineville’s economic development,” he said. “It provides local shippers a less expensive way to move their products and make them competitive. Today, there are at least 250 jobs directly tied to the railroad.”
Several companies including Krah, McCall Oil, Superior Carriers and Pacific Firs relocated to Prineville because of the railroad. “We have remarkably diverse customers. We ship and receive everything from sand for golf courses to lumber products to beet juice used to stabilize tires to asphalt oil,” Wiederholt said. “We started in 2009 with one customer and now have 50.”
Steve Fetrow is the sales manager for Deschutes Pine Sales and Malheur Lumber. “We need the services provided by the Prineville Railway. We keep our inventory for Deschutes Pine in their warehouse and use their shipping services on a regular basis,” he said.
Fetrow said his company takes products from John Day to the Prineville freight depot, where it’s loaded on railcars and shipped to customers. “Having the railroad is important to us to keep our costs down and keep us competitive with other mills,” he said. “The railroad is a crucial part of our operation.”
Kelsey Lucas, the director for EDCO’s Prineville and Crook County region, said what makes the railway unique is that it is city-owned rather than nationally owned. “The railroad staff is extremely customer oriented and easy to work with,” she said. “If a company needs a new spur to their location, they are able to get it done within three weeks, where it would take much longer if it were a national company.”
Bringing new businesses to the city requires everyone working together. “What I appreciate about the railway team is they are efficient, trustworthy and very responsive to what needs to be done,” Lucas said. “Years ago, they made an investment in the freight depot and the railway, and it’s provided great value to the city and businesses.”
Dustin Wilson is the director of terminal operations for McCall Oil. “We knew we wanted to find an additional location in Central Oregon to ship our products and we knew this area was growing,” Wilson said. “While we knew there was an opportunity for growth, we also knew the biggest challenge would be transportation.”
Wilson said the City of Prineville and the COPR made it easy for them to grow McCall Oil in Prineville. The rail spur allows him to easily offload products into his processing equipment. “Because of what the city had and how it worked with us, we are able to keep our costs competitive and be more efficient in our work,” Wilson said.
Beyond just adding jobs to Prineville’s economy, Wiederholt said McCall Oil also contributes to the Crooked River Rodeo, 4-H Clubs and other nonprofit organizations. They also built a community basketball court. “I called Matt on a Sunday after looking at other locations,” Wilson said. “Not only did he take my call on a Sunday, but he also asked me what I needed from the city to make the project work.”
The railroad’s customer service is and will continue to be the engine to assist businesses to grow and succeed in Prineville. “The investments we made in the railroad have resulted in us being in the black for the last six years,” Wiederholt said. “We have found a way to be self-sustaining while contributing to the economic development of Prineville. Our railroad has been key to allowing businesses to grow and compete nationally.”
