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WEYERHAEUSER DISCONTINUES OPERATING CHEHALIS WESTERN RAILROAD

WEYERHAEUSER DISCONTINUES OPERATING CHEHALIS WESTERN RAILROAD
 TACOMA, Wash., May 8 /PRNewswire/ -- Weyerhaeuser Co. (NYSE: WY) announced today that it plans to discontinue operating the Chehalis Western Railroad, effective July 1. The 100-mile rail line, which the company uses primarily to transport logs from its sorting facilities located in Vail to the company's Tacoma Sort Yard, employs 14 people.
 "Over the years, our log sorting and delivery requirements have changed -- including transporting logs directly from the woods to local mills," said Ed Vetter, Timberland manager for Weyerhaeuser's Cascade operations. "As a result, the volume of logs transported by rail has decreased significantly."
 Rail volume has also been negatively impacted by harvest restrictions caused by the northern spotted owl and other environmental setasides. According to Vetter, owl habitat restrictions have caused the company to move some of its harvest operations to locations that are not tributary to the railroad.
 "We have been evaluating the situation over a long period of time and have considered all the options," Vetter said. "This was a difficult decision to make and we regret the impact on our people, but we saw no alternatives."
 Weyerhaeuser plans to preserve the line for future rail use. The company will attempt to sell the Tacoma-Fredrickson segment to a qualified operator, thus preserving the city of Tacoma's access between Tacoma and the city's ownership at Graham. The remainder of the line will be mothballed.
 Weyerhaeuser has operated the Chehalis Western Railroad since December 1980. Railroad employees who cannot be placed in other jobs within Weyerhaeuser will receive severance benefits as negotiated with the local bargaining unit.
 -0- 5/8/92
 /CONTACT: Donna Brown of Weyerhaeuser, 206-924-5085/
 (WY) CO: Weyerhaeuser Co.; Chehalis Western Railroad ST: Washington IN: PAP TRN SU:


SC -- SE002 -- 8072 05/08/92 11:59 EDT
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Publication:PR Newswire
Date:May 8, 1992
Words:297
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