Railway hoping to sell tracks

Railway hoping to sell tracks


Railway hoping to sell tracks Company seeks deal with state
By Judy Harrison
BDN Staff
BANGOR DAILY NEWS PHOTO BY MICHAEL YORK
Robert Grindrod (left), president of the Montreal, Maine & Atlantic Railway, and board chairman Edward Burkhardt at their corporate offices Thursday in Hermon. Buy Photo

HERMON, Maine — The Montreal, Maine & Atlantic Railway announced Thursday that it is taking steps to sell or abandon its tracks between Millinocket and Madawaska because they are no longer profitable to maintain.

The company is asking the state to consider buying the tracks and maintaining them. If that were to happen, the Maine Department of Transportation and the railway could work out a deal so the company’s trains would use the rail lines without an interruption in service.

The tracks and land are worth about $17 million, Robert C. Grindrod, president and chief operating officer, said at a press conference Thursday at the railway’s headquarters. Upgrading them would cost an estimated $6 million, and the annual maintenance expense would total about $2.5 million, he said.

The legal process for abandoning rail lines takes between eight and 12 months. Operations will continue as the abandonment process goes forward, Grindrod said.

“The reason for this action is purely economic,” Edward A. Burkhardt, the railway’s board chairman, said Thursday. “For some time, MMA has faced weak lumber, paper and other forest products markets, and the economic downturn has greatly affected traffic on these lines. This portion of MMA’s network is heavily loss-making, and as such does not generate sufficient cash flow to provide for necessary capital expenditures to ensure sustainability.”

The 241 miles of track are about half of what the Hermon-based firm, formerly the Bangor & Aroostook Railroad, owns in the state, according to Burkhardt.

The lines are used by freight — not passenger — trains, he said. Products transported over the tracks in northern Penobscot and Aroostook counties include pulp wood, wood chips, lumber, heating fuels and cooking oil for McCain Foods Inc. in Easton. Trains travel the line two or three times per week, according to Grindrod.

“One solution would be for the state to acquire this segment of our network and to assume the future capital investment requirements,” Burkhardt said. “This would, of course, require funding, which would have to come from federal stimulus monies or would have to be addressed by the Legislature. MMA considers this the best possible solution as it would result in rail service being maintained at all stations.”

The state owns the tracks between Brunswick and Rockland, according to previously published reports in the Bangor Daily News. Maine Eastern Railroad has the rights to operate freight and passenger trains over the former Maine Central Railroad’s Rockland Branch.

Vermont owns all the tracks in that state, according to Burkhardt.

Both Grindrod and Burkhardt said that they have had conversations with Gov. John Baldacci and officials at MDOT about using federal and state money to buy the tracks.

Baldacci supports passenger and freight railways, the governor’s spokeswoman, Joy Leach, said Thursday. He also supports expanding the use of existing rail lines, she said.

Leach did not specifically say that the state would be financially able to purchase the railway’s tracks within the abandonment timetable of eight to 12 months.

She said the governor would work with railway officials, the state’s congressional delegation and legislators to identify potential funding sources to keep the trains rolling in northern Maine, if possible.

“MMA as a private company cannot continue to sustain the level of financial loss which is currently ongoing with little or no prospect of improvement,” Grindrod said. “The railway has too many miles to maintain and too little revenue to do it with.”

The company welcomes comments and ideas from the public, its employees and its customers, he said.

The railway began operation in January 2003 and owns more than 745 route miles of track, serving customers in Maine, Vermont, Quebec and New Brunswick, according to information on its Web site. It operates approximately 25 trains daily with main line operations conducted daily between Madawaska and Searsport and between Brownville Junction and Montreal.

The firm may be contacted at its Web site, www.mmarail.com, or by mail at 15 Iron Road, Hermon, Maine 04401.

jharrison@bangordailynews.net

990-8207

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Comments
21 comments on this item

Vermont does not own all of the tracks in the state. It only owns the former Rutland lines that it bought in the 60's.

Trains continue to be the best economical bang for the buck. Passenger service from Portland to Boston should be extended on both rail lines serving Augusta and Bangor. We can solve another energy problem by reinvesting in rail travel for freight and passengers.

Mismanagement is no excuse for the state to own the rail line. They have been mismanaged since the early 90’s when they were called the Bankrupt and Aroostook RR, the only line running crews of 4. Another factor is that Maine is too rural and there is not enough business between Hermon and Madawaska. Sell the line to the state, use it for recreational purposes and have Fraser send their rail freight via Edmonton over the CN.

If the state takes over the track then take Guilford’s line as well and let’s have a state run railroad. I am tired of hearing about mismanaged business too “big” or “important” to fail. Maine government needs to start backing small businesses that innovate and let go of the “monopolies” like the B&A.

If the state is going to invest money in something, let them invest in something that will make money, not lose it hand over fist. The rail road compananies have squeezed every last dime out of the service, profits going to the owners and not back into the infastructure. Now they cry and whine that it takes too much money to operate. Let them abandoned the tracks, if the woods business comes back, we have plenty of truckers to move it. Just think of the snowsledding, Millinocket to Madawaska and points in between smooth trails, beautiful scenery. Let's make some money out of those tracks, rip em up.

You have No Idea what your talking about wensdayschild123. All you have is your agenda to trumpet and that's it. You have no idea the impact this makes to Aroostook County. No clue. Go back to your Appalachian trails mentality. I feel real bad to the businesses in the county who may face the possibility on a one way transportation in and out of the county.

The bigger picture indicates the state of Aroostook county as a whole in terms of economic heartbeat. This decision is a key indicator of the health of our family in the North.

I would think 23million plus 2.5 million a year would help to make a nice route 1 from houlton to fort kent. Then the truckers would have a nice road to run. Could even widen out route 11 for an alternate route. The state would get more money back from ripping them up and having a rec. trail. The railroad is going to cost money, not make it. Hopefully if the state does buy the tracks we are looking at a new trail and not something roxanne quimby can touch.

So how about some facts here and not just speculative talking points.

Fact : In 1994 Fraser paper handled ( in and out ) daily revenue loads of about 64 cars a day. Including Chemicals, paper and such. All high end revenue for the railroad. Great Northern Paper Co in both East Millinocket and Millinocket shipped another 60 cars a day of chemicals and paper.These kinds of loads were classified as big money makers for the railroad. That is now for the most part all gone- not there anymore, and so is the decline in other revenues. Who maintains the track beds - the railways. Who maintains the Federal highway system- we the taxpayers do. Also the BAR RR had hundreds of boxcars all over the USA returning empty from revenue trips. These cars were used by other railways and also generated revenues.

All gone now. Those pirates that owned the railroad after the BAR and before the MMA pirated everything they could salvage, and bankrupted the railroad. The infrastrucyure was gone. They sold everything from their diesels to Company autos, to their office building --- everything and then leased it all back, and NEVER paid their leases. They left town. So why shouldn't the State help subsidize repairs and maintenance like they do for the highways. Keep this in mind. One 100 ton boxcar can haul 3 tractor trailer loads.

Thinking outside the box - seems as though you could potentially have a tourist passenger railroad that would take people from Millinocket to Madawaska with an overnight. I'm not suggesting regular passenger service, just a fun train ride. With the tourist based businesses in Millinocket, it would seem to be a naturall fit. This way it could continue as a freight line, but with 2-3 round trip passenger trains per week, helping to pay the bills. There's a lot of 'boomers' who are train enthusiasts and seek out these types of trips.

the state does not have money to buy and maintain it! ..get real!!!! This bailout mentality needs to stop!

Being a Millinocket Sledder, this railbed would make a wicked nice snowmobile trail. By using this railbed, the main snowmobile trail heading north out of Millinocket would not have to come anywhere near Roxanne Quimby's territory. The State is supposed to be purchasing some land from Quimby where the snowmobile trail currently runs. The State could put that money towards the purchase of this railbed.

Let's face it, snowmobiles are going to bring more revenue to the County than rail freight ever will. This railbed needs to be converted to a recreational trail like the Brewer to Calais line.

Turn it into a logging-truck-only road (really not much different than a railroad) and get tose big trucks off our city streets!

We are in a jam, and we are sinking ever ddeper each day. While the rest of the country is using their railroads, Maine is not. A report issued this spring by the Americian Society of Civil Engineers rated Maine at 48th out of the 50 states in volume of state commerce that moves by rail.

And why aren't we using our railroads? Primarily because of the poor service that is offered by Pan Am Railways, which should be a vital link for the Montreal, Maine and Atlantic Railroad to move their freight to southern New England. Since Pan Am came on the scene in the early 80's, the volume of freight moving over America's railroads has more than doubled. The volume moving over Pan Am Railways has dropped by nearly 75%. And the reason seems to be plain old greed. They don't rebuild their locomotives, they don't maintain their tracks, they don't purchase new railcars and they treat their employees terribly. The Federal Railroad Administration (a division of the US Department of Transportation) sent their track geometry measuring car through Maine just a couple of months ago. When they were done, they condemned more than 90% of Pan Am's mainline track between Portland and Mattawamkeag to speeds no faster than 10 miles per hour. We know of freight trains that take more than three days to move from Bangor to western Massachusetts.

So why don't our elected officials do something about the situation? I don't know! You tell me!! A couple of years ago, the President of Pan Am Systems introduced the Governor as, "my very good friend; John Baldacci".

So, instead of free-enterprise maintaining our railroad infrastructure, it looks like the tax-payers will be REQUIRED to do so. We have some great leadership in Augusta.

Bulk commodities, gasoline, diesel, propane, lumber, common freight, should be REQUIRED to come into the County by rail. There is no reason why bulk goods should be trucked in. This is unlikely to happen so perhaps the rail beds should be converted to sled trails. By no means should the rail bed be sold to ahem, 'enviromental' groups.

OK, want to hear it from the other Maine? Several years ago, the railroad sold many miles of tracks between Fort Kent and St. Francis and between Van Buren and Caribou. Although it was a great blow to our area, it opened new opportunities. At first, there were great discussions about the land going back to the landowners because the term "right of way”. After much discussion, it did not. The land remained as a continuous track and was turned into a recreational muti-use trail. A company named Fish River Railroad back at the turn of the century purchased this land. I remember my father worked with Oxen and Mules to transport the many tons of shale that was blown apart from the Earth to form the wining rail system along the Fish River. Today, with so many out of town people buying land and posting it, it was a God sent for the snowmobile clubs and ATV clubs. It took these clubs in new directions such as, no more lease agreements, no more annual rerouting trails because of new land ownerships and a trail that remained easy to maintain because of its flat surface. Snowmobiling brings so much to these communities in the wintertime and I strongly support the state assisting the company and in turn the communities that have lost so much in recent years

The rail has been its own worst enemy, they have put themselves into this situation. They blame pulp and paper and the lumber industry, truth is nobody wants to use them because they are same price unit for unit as shipping by truck. Only thing is, trucks are more dependable and timely. Why should the state bare this burden? The rail needs to reshape and rebuild its ethic and image and make things work on its own.

Lets see the Railroad cant afford the maintain the rail so they want the State to buy it and fix it up and in return they will use it again.......wow where do we sign up....NOT! They said that they would abandon it then let them.....the Paper Industry is DEAD PERIOD! Take them over by eminent domain strip the rails and make it a multi-use trail system that will benifit the country more than the rail every did! If it is tourism that we need to attract then lets get going and do something. I have heard the Katahdin area the land ownership has changed so much so that doing any trail development with the likes of some of the land owners is nearly impossible so this would solve the Quimby attitude in the area.....as for turning into a passenger train look at the passenger trains systems in Maine that have and are still having a hard sell.......

i hope all you central/northern maine people get a rec trail from this, you are already in an area where a big part of people income come from snomobile/atv use. so why not boost that even more to me a no brainer but what do i know, ask any business close to the downeast sunrise trail if they want a train or rec users. BigBoy u hit right on the nose with your post

Tom Peters described in initimate detail how the Railroad industry was a model for everything that is wrong with American business. This is an unfortunate outcome to one of the most incredible contributions to what made the USA. If my memory is 60% it goes something like this: " Fred, we have to change the railcars to another track." "Ok Charlie, let me clear this with my boss." So Charlie talks to his manager, who in turns talks to his director who talks to his Sr. Director who talks to his Vice President who talks to his Sr. Vice President. The Sr. Vice President calls Fred's company's VP and the decision is communicated from that Sr. VP down the chain of command down to Fred who can change the tracks so the train can continue on its course.

This scenario of course was when Tom Peters was a business expert and this may be obsolete but the damage is done.

Sledman says..."Bulk commodities, gasoline, diesel, propane, lumber, common freight, should be REQUIRED to come into the County by rail. There is no reason why bulk goods should be trucked in." Are you serious? Save a business that's going bankrupt by shutting down the trucking companies! How many people will that put out of work?

Passenger train sounds good to me.

turn them into rec trails ........they so bad in shape that too they cant run faster then 10 MPH........and that trail would even have a intenational crossing to go ride into canada..........imagine the possibilties............thats the money maker for the state.

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