I. Melbo, the Portland & Western was created to take over the new lines, rather than just extending the WPRR, due to regulatory issues then in force. Most of the former SP branches are operated via a twenty-year lease agreement, which in the wake of the 1996 Union Pacific-Southern Pacific merger, are now held by UP. The operations on the former BN branches are mixed between leases and outright ownership. Routes of the PNWR and WPRR Relationship with WPRR Originally, the Portland & Western has been operated as a "paper corporation". Its officers were the same as those of the sister WPRR, with which its lines are contiguous. WPRR locomotives and other equipment were used to operate the line, and all locomotives are painted and/or lettered for the PNWR as a publicity move. Operating crews were divided between the two companies, but in practice, crews of PNWR or WPRR would be used anywhere they were needed on the system. The late 1990s brought changes to the relationship. System additions which brought with them more operations in Portland led the company to move its headquarters north from Albany to Salem, Oregon. With an increasing profile in the metro area, the Portland & Western became the predominant corporate image in December 2000. Everything from locomotives to letterheads began to bear the brand Portland & Western. In effect, the situation of 1995 has been reversed, and WPRR is now the paper corporation. System expansions The combined PNWR/WPRR system has expanded rapidly. In 1997, PNWR acquired the "Astoria Line", running from Northwest Portland through to the deepwater Port of Astoria from Burlington Northern. At nearly 92 miles in length, the line brought a significant number of paper, lumber, and chemical customers onto the system. In 2002, PNWR acquired a long-term lease of the remaining Burlington Northern branches in the state, giving the company access to Salem and Eugene via its own tracks. The acquisition of the former allowed PNWR to make through movements from its Portland-area lines to its central yard at Albany without routing over the steep and curvy Rex Hill. Traffic base PNWR has a diverse traffic base based on carload commodities. Woodchips, paper, agricultural goods, and aggregates are all major sources of traffic. Primary amongst the road's over 135 customers are Georgia Pacific, Stimson Lumber Company, Cascade Steel Rolling Mills, and Hampton Lumber Sales. PNWR handles over 90,000 carloads annually. Three