On April 25, the Surface Transportation Board ruled that the city couldn’t tear up the Kellar Branch for at least another 90 days so Carver Lumber had time to evaluate the service they receive from Central Illinois Railway (CIRY) over the new western spur. Carver and CIRY were expected to report back to the STB at the end of that time, and that time has come.
It’s not posted on the STB’s website yet, but I’ve heard from a reliable source that Carver has submitted their report, and it’s not a good one. Their freight costs have doubled and their service has deteriorated, thus they want service via the Kellar Branch restored. I’ll have more specifics to report once I see the actual filing.
It’s unlikely that the STB would side with the city after getting such a report from an active shipper. This could be the death knell for the city’s plans to replace the Kellar Branch rail line with a hiking/biking trail. On the other hand, Pioneer Railcorp has had a standing offer for the past two years to help build a trail next to the rail line in exchange for letting them purchase or lease the Kellar Branch.
If the city were smart, they’d take Pioneer’s deal now, before the STB’s decision. Selling or leasing the line would provide some much-needed cash to a city looking at big budget holes, plus they would still get their beloved trail to boot. What do they have to lose?