Central California commission seeks new branch line operator
3/10/2026
By Jeff Stagl, Managing Editor
A branch line owned by the Santa Cruz County Regional Transportation Commission (SCCRTC) in central California soon will be managed by a different freight-rail operator.
In early February, the commission voted to terminate an administration, coordination and license agreement with Progressive Rail Inc., which since mid-2018 had operated the 32-mile branch line that runs from Davenport to Watsonville in Santa Cruz County. That decision was made for a number of reasons, said SCCRTC Executive Director Sarah Christensen in an email.
There are no freight customers on the line north of Watsonville and only three customers in Watsonville. Most of the line is in poor condition and inoperable for heavy freight trains, with repairs exceeding available funds for the foreseeable future, according to the commission.
Progressive Rail “has not responsibly managed the freight easement” by formally placing the line out of service where it’s not available to freight customers, Christensen said.
A map shows how the branch line hugs the Pacific Coast between Davenport and Watsonville in California’s Santa Cruz County.Santa Cruz County Regional Transportation Commission“Furthermore, contract disputes with Progressive Rail have resulted in the commission using public funds to manage and maintain a portion of the line that Progressive Rail was responsible for. Negotiations to amend our agreement with Progressive Rail to resolve outstanding issues were unsuccessful, so the SCCRTC terminated their contract,” she said.
The SCCRTC has needed to invest public dollars to maintain portions of the branch line that Progressive Rail was contractually obligated to maintain, Christensen stressed.
“The commission has made substantial efforts to address this with Progressive Rail but has been unable to work cooperatively towards an agreement that ensures the branch line is maintained and preserved for future use,” she said.
RailPrime reached out to Progressive Rail for comments. The company — which is based in Lakeville, Minnesota, and owns 11 short lines — did not respond.
Most of the line north of Watsonville is in poor condition and inoperable for heavy freight trains, commission leaders say.Santa Cruz County Regional Transportation CommissionThe SCCRTC also aims to advance a Coastal Rail Trail plan along the line while preserving the existing freight- and excursion-rail services along the branch. The line is located within one mile of more than 90 parks, 40 schools and over half of the county’s population.
The 4.2-mile trail would serve as a bicycle/pedestrian path along the branch line corridor from Live Oak to the Seacliff neighborhood. To be constructed from 2027 to 2030, the trail is designed to support recreation, transportation and environmental/cultural education along Monterey Bay.
In 2012, the commission purchased the branch line — which was built in 1876 — from Union Pacific Railroad. The line’s first operator was the Santa Cruz and Monterey Bay Railway, which was owned by Iowa Pacific Holdings.
The commission acquired the line to improve transportation options countywide while also continuing rail operations. The contract termination now clears a path for near-term work to start on the Coastal Rail Trail and long-term plans to advance passenger-rail service on the line while maintaining freight operations, SCCRTC officials said.
The commission currently is working to assume common-carrier status for the branch line. The SCCRTC had issued a request for proposals seeking responses from qualified rail operators that can continue to maintain uninterrupted freight-rail operations, with proposals due Feb. 6.
“We are on schedule for the new operator to be awarded a contract at one of our upcoming commission meetings,” said Christensen.
