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February 15, 2008

Oregon governor nixes railroad project subsidy

FLORENCE, Ore. (AP) — Oregon Gov. Ted Kulongoski has turned down a railroad company's request for state aid to repair tunnels along a 120-mile stretch of Coast Range track it has closed.

The owners of the Central Oregon & Pacific Railroad are asking the state, the federal government and the shippers who use the line from Eugene to Coquille for a commitment of more than $20 million before they sink $3 million to $4 million into repairing the tunnels that prompted the Boca Raton, Fla.-based hedge fund RailAmerica to close the line last fall.


 
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