Mediation fails to forge deal
But work still ongoing to save historic rail line
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This diesel locomotive and attached rail cars once served as the train used to carry pas- sengers on the New River Scenic Railway until it was shut down in 2010. They have sat abandoned on this siding at Devonia in Anderson County since 2013. These tracks could soon be pulled up, leaving the train here forever, if the current owner of the historic rail line has its way. - G. Chambers Williams III
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This passenger car once used by the New River Scenic Railway sits abandoned on a siding of the former Tennessee Railroad line near its terminus in Devonia, rural An- derson County. The rail line itself, dating to the late 19th century, has been targeted for abandonment and destruction by its current owner, R.J. Corman Railroad Co. - G. Chambers Williams III
An Arkansas-based railroad company trying to save an historic railroad line from Oneida to Devonia in Scott, Campbell and remote Anderson County has failed to persuade the line’s current owner to come to terms on a sale through mediation.
In a filing with the U.S. Surface Transportation Board recently, the mediators said that despite two meetings with the line’s current owner, Kentucky-based R.J. Corman Railroad, and the company trying to buy and preserve it, the Arkansas-Oklahoma Railroad Co., on Jan. 21 and 22, “the parties ultimately were not able to reach a settlement,” and “the mediation has ended.”
But Anderson County Mayor Terry Frank said there still is a motion pending before the STB seeking a reconsideration of the board’s decision last fall to deny an appeal of its earlier rejection of a bid by AOK to force a sale of the 41-mile rail line.
And in response to the end of mediation, U.S. Rep. Tim Burchett, R-Tenn., has filed a letter with the STB urging the agency to reconsider its earlier decision to reject AOK’s Offer of Financial Assistance to buy the line from R.J. Corman.
“I write in support of renewed consideration of the offer of financial assistance provided by the Arkansas-Oklahoma Railroad Co. for 41.05 miles of railway in Anderson, Campbell, and Scott Counties in Tennessee,” Burchett said.
“As you know, following R.J. Corman Railroad Property, LLC’s notice of its intention to abandon a railroad line extending from Oneida, Tenn. to Devonia, Tenn., in March 2020, AOK has been working to gain approval of an OFA to purchase the line. If successful, AOK will reopen the line for freight service, and may eventually work to utilize the line to bring additional economic investment in the region.
“Importantly, the effort to preserve this historic rail line is supported by mayors of Anderson, Campbell, and Scott counties, as well as the North East Tennessee Rail Authority, which was established to secure economic benefits and provide for the continuation of railroad services in these counties.
“As a native of East Tennessee and Representative of Tennessee’s Second Congressional District, which includes a portion of Campbell County, I understand the positive economic impact of this rail line and encourage the Surface Transportation Board to reverse its decision to reject AOK’s OFA.”
Frank, who also is chairman of the Northeast Tennessee Railroad Authority, has been working with leaders of Scott and Campbell counties to try to preserve the rail line for economic development opportunities.
U.S. Rep. Chuck Fleischmann, R-Tenn., has also contacted the STB to help in the local campaign to save the historic railroad line, which dates to 1889.
The congressman wrote a letter to the three members of the STB late last year asking them to reconsider their decision to deny an appeal seeking to overturn the board’s decision to allow the line to be permanently closed and removed.
In the letter, Fleischmann said:
“I am writing in support of preserving the 41 miles of railroad line located in Scott, Campbell, and Anderson Counties, Tennessee, and I ask that you thoughtfully review the reconsideration petition from the North East Tennessee Rail Authority and the Arkansas-Oklahoma Railroad Company to allow for the purchase of this line owned by R.J. Corman (RJC).
“The projected business plan for this line, along with efforts to add new shippers, will have a positive annual economic impact.
“However, the abandonment and removal of the line in theses rural counties would have a negative impact on the local communities and damage their prospects for growth and development.
“Additionally, removal of the line would jeopardize any future utilization of energy reserves in these areas and eliminate Tennessee jobs,” he wrote.
On Oct. 13, the local proponents of efforts to save the rail line filed that appeal with the STB to try to overturn the board’s Sept. 25 decision – in a 2-1 vote -- that would have allowed for immediate removal of the tracks.
The board has not yet acted on that appeal, but did order the mediation, which ultimately failed.
The line has been used for coal and timber operations, but trains last ran on the tracks in 2013, when a coal mine at Devonia shut down.
New River Scenic Railway ran passenger excursions on the line until being shut down by R.J. Corman in 2010.