Federal Railroad Board Blocks Great Redwood Trail
Cites freight potential between Fort Bragg and Willits
The Surface Transportation Board on Thursday denied a petition to abandon a 40-mile railroad line in Mendocino County, ruling that the corridor retains potential for freight service and must remain part of the nation’s interstate rail network.
The decision is a victory for the Mendocino Railway, which owns the line, and marks a departure from earlier rulings that allowed the former North Coast Railroad Authority — now the Great Redwood Trail Agency — to convert portions of its rail line into a trail.
The North Coast Railroad Authority first signaled its intent to abandon its 145-mile line from Willits to Eureka nearly five years ago. Rail service north of Schellville and Napa Junction had already been under a federal emergency embargo for two decades.
“There has thus been no freight rail traffic on any portion of the Line at issue in this proceeding since at least 1998,” the agency wrote in a 2021 filing, arguing that retaining the corridor for nonexistent freight service imposed unsustainable costs. Rehabilitating the line, it estimated, would cost between $100 million and $600 million, while landslides and washouts continued to damage the route.
In 2022, the board allowed abandonment to proceed after determining that Mendocino Railway lacked the roughly $12.7 million it said it would need to acquire and rehabilitate a 13-mile segment.
The dispute resurfaced in April 2024, when the Great Redwood Trail Agency sought approval to abandon 40 miles of track between Fort Bragg and Willits owned by Mendocino Railway. GRTA argued that no interstate freight shipments have originated or terminated on the line since Mendocino Railway acquired it in 2004 and that market studies show insufficient demand to justify full restoration.
Abandonment, GRTA said, was necessary to advance the 316-mile Great Redwood Trail along the Northwestern Pacific Railroad corridor, as required by state law.
The board disagreed.
“GRTA has not satisfied the heavy burden to justify removing the MRY Line from the interstate rail network against the carrier’s wishes,” the decision states.
“This corridor remains a vital public asset for Mendocino County,” said Robert Jason Pinoli, President and CEO of Mendocino Railway. “We appreciate the Board’s thoughtful review. Our focus now is simple: protect the corridor, continue investing in it, and work constructively with regional partners on long-term solutions.”
Caryl Hart, a member of the board of directors of the Great Redwood Trail Agency, said the agency recognizes the efforts that Mendocino Railway has been making to establish themselves as a true rail carrier. She said the agency plans to move forward with a “rail with trail” experience and to work together with the Mendocino Railway to achieve their legislative mandate.
Board’s Rationale
The board rejected GRTA’s argument that the adjacent federal embargo effectively strips the line of interstate status. An embargo temporarily relieves a railroad of service obligations, the board wrote, but does not sever a line from the national rail network absent formal abandonment.
It also found that Mendocino Railway had taken concrete steps toward restoring service, including securing a $31.4 million federal loan to rehabilitate a collapsed tunnel east of Fort Bragg, investing more than $30 million over two decades, and reaching a preliminary agreement with Grist Creek Aggregates to ship at least 400 annual carloads of aggregate once repairs are complete.
That future potential, the board concluded, outweighs GRTA’s trail objectives.
The decision also emphasized that a recreational trail does not necessarily require eliminating rail service. A “rails-with-trails” arrangement could allow both uses within the same right-of-way, so long as train operations are not impeded.
What Comes Next
Rail industry groups backed Mendocino Railway, while the Pacific Legal Foundation argued the board lacks authority to grant abandonment applications filed by non-carriers. The board declined to resolve that question, denying the petition on substantive grounds instead.
In separate statements, two board members suggested possible regulatory changes that could provide an alternative path for trail preservation. A pending rulemaking petition filed by the U.S. Departments of Justice and Interior in December 2024 would allow railbanking through the board’s discontinuance authority rather than requiring full abandonment.
For now, however, the Mendocino Railway line remains part of the interstate rail system — and the Great Redwood Trail faces a significant federal obstacle.
Read MendoLocal.News’ coverage of Mendocino Railway and the battle over its status:
Skunk Train Chief Details Freight Operations, Federal Oversight Amid Eminent Domain Dispute
California Appeals Court Says Public Utilities Need Not Serve Active Customers
Should the Skunk Train be Part of the Regional Transporation Plan?
California AG Bonta Challenges Mendocino Railway’s Federal Carrier Status
Mendocino Railway Rejects Fort Bragg’s Bid for Yearlong Pause in Litigation
Fort Bragg Plans Public Study Session, Website to Boost Transparency on Mill Site Development
Skunk Train, Fort Bragg Jointly Agree to Set Aside Default in Mill Site Suit
U.S. Supreme Court denies Skunk Train appeal
Federal Railway Agency Affirms Mendocino Railway’s Carrier Status
Default Notice Issued as Stormwater Contamination Battle with Fort Bragg Escalates
That Corridor should remain as a "back-up" to the highways. It really wasn't that long ago when Tourists and locals rode the train during the day, lumber ran at night from F.B. to Willits. Once the tunnel is fixed, a lot of items can be shipped via the train, and in Emergencies, it's a good "OUT".
I think the 'rail with a trail' option is probably the best. It would keep Mendocino Railway around to pay to fix the tunnels and get the Skunk rolling again between Willits and Fort Bragg (and Northspur!).
Depending on the expected traffic the hiking trail is expected to draw, those could be additional tourist dollars as they pass by the rail stations and concession stands.