A new joint venture is boosting an old transportation tool that has carted cargo into and out of the Santa Maria Valley since long before the advent of trucks, planes and rockets.

Rob Himoto, president of the 114-year-old Santa Maria Valley Railroad, shared about the firm’s new link with OmniTRAX, a privately owned company that owns about 30 other shortline railroads across the country.

He provided the update during the EconAlliance forum focused on infrastructure where other topics included the Santa Maria Public Airport, Vandenberg Space Force Base, and agencies responsible for roads and transportation serving North County. 

Dubbed a shortline railroad due to its 14.7 miles of track and touted as “Gateway to the Central Coast,” the Santa Maria Valley Railroad’s reach goes beyond the local area by connecting to Union Pacific tracks in Guadalupe.

Rail service remains relevant today amid 21st century concerns, he said, before noting one key advantage.

“For customers, it saves money,” Himoto said. 

“And the other thing is one railcar is about four truckloads, and what that does is it reduces our congestion on our highways,” he added. 

About 18 months ago, Santa Maria Valley Railroad representatives were approached by OmniTRAX, but Himoto said the railroad wasn’t for sale. The two sides entered into a partnership with operations remaining locally and OmniTrax providing capital for growth.

The agreement marked OmniTRAX’s first rail joint venture acquisition.

“As a multi-generational, privately held company, OmniTRAX has the capacity to create deal structures like this that can preserve the benefits of local involvement and knowledge,” said OmniTRAX Executive Vice President Nathan Brown.

OmniTrax offered one key factor that has been a hallmark of SMVRR in the past century. 

“What we like about OmniTrax is it’s a family operation,” Himoto said. “It’s a big corporation, but it’s owned by the Broe family. That’s significant to us because since 1925 this is basically a family-owned operation — the Hancocks, us and now partnership with the Broe family.”

With the deal finalized in the spring, a brand-new locomotive has joined SMVRR.

“That’s great because we have the oldest locomotive fleet in California, so this is really helpful to have reliable power,” Himoto said.

Plans also call for upgrading and improving the track, some of which has not been refurbished for decades.

Replacement rail lines will feature heavier materials allowing trains to travel a bit faster and require less maintenance. That means longer trains won’t cause delays at railroad crossings in the Santa Maria Valley.

Capt. Hancock Fuels SMVRR

The Santa Maria Valley Railroad began in 1911, initially to service Roadamite or what then was the world’s largest asphalt plant southwest of Sisquoc, Himoto said.

In 1925, Capt. G. Allan Hancock, entrepreneur and philanthropist, took over the railroad. 

“He built the railroad to be one of the busiest and most profitable shortline railroads in the western United States. He invested heavily in the Santa Maria Valley — built a new engine house, invested in locomotives, completely rebuilt the line,” Himoto said. 

“Then after that he developed a lot of industries that fed into the railroad, and the railroad became the economic engine that really grew Santa Maria Valley,” Himoto added. “It hauled almost everything you could think of back then.”

Reviewing invoices from decades ago revealed shipments included oil, fresh produce, automobiles, appliances, steel, brick, lumber and more. 

Hancock died in 1965, and the family’s trust took over the railroad’s operations.

By the 1980s, the railroad heavily depended on the sugar beet plant in the Betteravia community west of Santa Maria.

But in 1993, the plant — originally known as Union Sugar and later Holly Sugar — closed, eliminating about 75% of the railroad’s business.

The family trust focused on real estate so the railroad languished for the next decade. 

In 2006, Himoto and his family, Coast Bell Rail Corporation, purchased the railroad, spending the next 19 years to rebuild the main line, recruiting former customers and wooing new customers.

“It’s been pretty much a challenge,” Himoto said, adding they have two dozen customers shipping a variety of commodities with agriculture still making up 50% of the cargo.

Transloading, Propel SMVRR Today

SMVRR has built a rail yard, installing track in a field west of Santa Maria and adding transloading to the offerings. 

Transloading, a growing service in recent years, involves shipping items by rail but using trucks for the last leg of the trip to reach the end destination.

That means customers in Santa Barbara or San Luis Obispo counties who may not be on a rail line still could take advantage of cross country rail shipments and use trucks the last leg to get the cost benefit of using trains, Himoto said.

Later this year, Himoto said they expect to announce a new transloading customer that would significantly raise the railcar loads.

With most of their 20-acre site near unused, Himoto said they envision adding more siding and temporary storage for now and warehouses later.

The railroad has other unique offerings including serving as a filming location for movies, television shows and commercials, boasting a fleet that includes four locomotives, freight cars, passenger car, motorcars, and track machines. 

“Our right of way includes picturesque agricultural lands, industrial areas, and mountain backdrops,” the SMVRR website boasts.

Fifth District Supervisor Steve Lavagnino asked about whether plans include adding a wine train in the future. 

While concentrating on freight for now, Himoto said they operated a dinner train about 18 years ago and haven’t given up on the idea.

“We’re hoping and keeping our fingers crossed,” he added.