RTC to Become Common Carrier for Portion of the Rail Line to Advance Rail Trail Projects and Protect Community Interests 

Following months of unproductive negotiations, the Santa Cruz County Regional Transportation Commission (RTC) issued a notice of termination of the Administration, Coordination, and License Agreement with Progressive Rail Incorporated, which currently serves as the common carrier on the Santa Cruz Branch Rail Line.   

This decision marks a necessary step in the development of transportation solutions along the RTC-owned branch line, including the Coastal Rail Trail in the near-term and passenger rail in the long-term. This action also preserves the existing freight and recreational rail uses along the branch line, while allowing Coastal Rail Trail projects to be implemented along non-operational sections of the line.  The RTC remains fully committed to continuing freight service for the three existing freight customers in Watsonville. 

“The RTC has worked in good faith to reach a cooperative solution that would allow continued freight service while also advancing a safe and accessible rail trail for our community,” said RTC Executive Director Sarah Christensen. “Unfortunately, Progressive Rail has been unwilling to find a workable path forward while making unrealistic and unattainable demands in exchange for their cooperation. Terminating this agreement is a necessary next step to move forward with implementing the Coastal Rail Trail and future passenger rail opportunities while protecting the public’s investment in this corridor.”  

Following termination of the agreement, the RTC will become the common carrier for the portion of the line not actively used for freight. The RTC is actively soliciting proposals from qualified rail operators to continue freight service in Watsonville. Christensen added, “The RTC is fully committed to continuing recreational excursion rail service operated by Roaring Camp Railroads on the portion of the line currently used by the popular Beach Train. There is no intention of changing or discontinuing this service.”  

Several factors contributed to the RTC’s decision to terminate the agreement, including:  

• Progressive Rail’s lack of cooperation in efforts to advance the interim rail trail project  

• Failure by Progressive Rail to fulfill contractual maintenance obligations, resulting in the RTC expending taxpayer funds to cover these costs  

• Obstruction by Progressive Rail of local efforts to put the corridor to broader community use  

• The need to advance trail implementation without railbanking or adverse abandonment  

• Protecting approximately $120 million in grant funding critical to delivering the rail trail project  

Following formal termination of the agreement with Progressive Rail, the RTC will take steps to implement this change, including award of an agreement for Watsonville freight service and complete all necessary filings to become the common carrier north of Watsonville.