History
The Portland and Western Railroad was established in 1995 as a Class III shortline operator, initially taking over branch line operations that the Southern Pacific Railroad had determined were surplus to its core network. These included the former SP Tillamook Branch running between Willsburg Junction, near Milwaukie, and Hillsboro, along with the Westside-Seghers Branch extending from Hillsboro toward Gaston, and a segment of the Newberg Branch between Cook and Springbrook. The railroad began revenue operations on August 18, 1995, with approximately 52 miles of track leased from Southern Pacific. Shortly after startup, Burlington Northern transferred portions of its Oregon Electric Railway branch lines north of Salem to the new carrier, including remnants of the Forest Grove branch. The Portland and Western was organized as a separate corporate entity from its sister railroad, the Willamette and Pacific Railroad, partly for regulatory reasons, though the two roads shared officers, equipment, and operating crews from the beginning.
The relationship between the Portland and Western and the Willamette and Pacific Railroad evolved significantly over the first several years of operation. Initially, the Portland and Western functioned largely as a paper corporation, with Willamette and Pacific providing the locomotives, crews, and operational infrastructure. In December 2000, the two railroads effectively reversed their roles, with Portland and Western becoming the primary corporate identity for the combined system. This shift was driven in part by the fact that the Portland and Western maintained interchange relationships with both Union Pacific and Burlington Northern Santa Fe, while the Willamette and Pacific had historically worked only with Union Pacific. The Willamette and Pacific nonetheless remained a legal entity, retaining ownership of certain assets, while Portland and Western assumed the role of system operator. Following the 1996 merger of Union Pacific and Southern Pacific, the lease agreements for the former SP branch lines were assigned to Union Pacific as successor, a relationship that continued into subsequent decades.
The railroad expanded its geographic reach considerably in the years following its founding. In 1997, the Portland and Western acquired the Astoria Line from Burlington Northern, a route of nearly 92 miles connecting northwest Portland to Wauna along the Columbia River. This acquisition brought a significant base of paper mill, lumber, and chemical industry customers onto the system. In 2002, the railroad secured a long-term lease of additional former Burlington Northern branches that extended the system's reach to Salem and Eugene, allowing through movements from the Portland area to the railroad's central yard at Albany without traversing the steep and winding Rex Hill grade. The railroad's headquarters and primary mechanical facilities are located in Albany, with additional crew bases at St. Helens, Tigard, McMinnville, and Eugene, and executive offices maintained in Salem.
The Portland and Western is a wholly owned subsidiary of Genesee and Wyoming Inc., a major holding company for shortline and regional railroad properties across North America. The railroad operates between 20 and 30 trains daily over its roughly 478-mile system, serving a diverse base of more than 135 customers with traffic in woodchips, paper products, agricultural commodities, aggregates, and steel. Key named trains on the system include the Harbor Turn and Albany Turn running between Portland and Albany, the Toledo Hauler crossing the Coast Range to the Oregon coast, and an Albany Hauler providing interchange with the Central Oregon and Pacific Railroad at Eugene. In 2006, the railroad assumed operation of a train pair connecting Vancouver, Washington, to Albany, marking the first regular Portland and Western service operating outside the state of Oregon. The railroad also handles run-through grain unit trains moving between BNSF Railway and Port Westward on the Astoria Line, reflecting its role as a significant link between Class I carriers and Oregon's agricultural and industrial shippers.