After losing bid, Iowa Pacific offers to start regional passenger rail by late May
http://www.tulsaworld.com/business/transportation/after-losing-bid-iowa-pacific-offers-to-start-regional-passenger/article_41237f8d-9ae7-5f6d-81a1-a8c05d654b77.htmlBy CURTIS KILLMAN World Staff Writer
A losing bidder involved in the state's proposed sale of a rail line between Sapulpa and Midwest City has offered to begin regular passenger service along the route by Memorial Day weekend.
Iowa Pacific announced Wednesday that it has formally requested the state Department of Transportation, which owns the Sooner Sub rail line, to permit the Chicago-based company to begin regular passenger service this spring.
Iowa Pacific just wrapped up a sold-out inaugural run of three passenger train trips between Sapulpa and the Midwest City area. The route has been dubbed the Eastern Flyer.
"The people along the Sooner Sub corridor have been waiting patiently for rail passenger service," said Ed Ellis, president of Iowa Pacific. "We are thrilled with the communities' response and would like to continue serving them with exceptional rail travel."
Iowa Pacific was one of four companies that had sought to purchase the rail line after ODOT requested bids earlier this year.
On Friday, a review committee composed of five members of Gov. Mary Fallin's cabinet trimmed the list of bidders to two, Burlington Northern Santa Fe Railway Co. and Watco Cos. The state is now conducting one-on-one negotiations between them.
BNSF is owned by billionaire investor Warren Buffett's company, Berkshire Hathaway Inc. A subsidiary of the Omaha, Neb.-based company, BH Media, bought the Tulsa World last year.
Watco owns Stillwater Central Railroad Co., which has a lease with the state until Dec. 31, 2017, to manage and operate the 97.5-mile long Sooner Sub and another line between Stillwater and Pawnee.
Iowa Pacific operated the three 300-passenger excursion trips through an agreement with Stillwater Central.
Advocates of passenger rail service in the Tulsa area have urged the state not to sell the Sapulpa-Del City line.
Iowa Pacific said in a news release it was prepared to begin regular service by Memorial Day weekend, with phased improvements to come over the next two years. The company has asked that the contract development be independent of any potential sale of the line.
The state has included stipulations in the proposed sale that include requiring the buyer to honor the lease with Stillwater Central.
Additionally, the request for proposals state that the "purchaser should anticipate providing commercially reasonable procedures for allowing access to the line by competing railroads and other service providers including passenger rail operations if determined feasible."
Iowa Pacific, in its release, said it will offer transportation beyond the current endpoints of the rail line, including access to downtown Tulsa in about six months.
The Iowa Pacific proposal to ODOT includes dedicated shuttles to take guests to city centers, universities, airports and even Bartlesville.
Iowa Pacific will also develop shared shuttles and other methods of personalized transportation to allow the Eastern Flyer to serve as a common link for all residents and businesses, according to the release.
The release said access to downtown Oklahoma City would take longer to develop.
Ellis could not be reached for further comment.
A spokesman for ODOT did not immediately respond to a request for comment.
Curtis Killman 918-581-8471
curtis.killman@tulsaworld.com