Plans to lease and revive two freight railroad branches in Maine have been delayed by a federal board in response to requests from a labor union, another railroad and a retired rail journalist.
TransloadX Railroad Company, run by the owners of shipping logistics company TransloadX, filed in March for an exemption with the federal Surface Transportation Board that would streamline the approval process by limiting review requirements. That exemption would allow TransloadX-RR to lease and operate the lines owned by CSX. One runs from Augusta to Waterville and the other connects Bucksport to Bangor; both are now dormant.
The board, which regulates railroads, decided Tuesday to postpone granting that exemption to gather more information and decide whether the company is eligible.
It comes in response to filings that argue the public and Maine’s rail network would be harmed if the lease proceeds. Concerns include the owners’ background, their intent in leasing the lines and obligations CSX had when it took over the branches four years ago.
Both CSX and TransloadX-RR have disputed claims in the filings, and TransloadX suggested they are influenced by a “competing party.” It’s not clear yet how plans for the Augusta and Bucksport branches may be affected.
“Actions like these ultimately harm the communities and businesses that rely on dependable rail service, which we are dedicated to delivering,” John DeWaele, president of TransloadX-RR, said Wednesday. The railroad company welcomes the pause to address allegations it says are inaccurate, according to DeWaele.
CSX took ownership of both branches when it acquired Pan Am Railways in 2022; TransloadX-RR recently won a bid to lease and operate them.
The company previously told the Bangor Daily News that it planned to reopen both, investing locally and making repairs while developing freight customers.
Shortly after, Chalmers Hardenbergh, a retired rail journalist in Freeport, asked the board to pause and revoke the notice of exemption.
He raised concern that the owners of TransloadX, DeWaele and Michael Milanoski, were found in contempt of court and engaged in “unfair and inequitable conduct” in a case over the sale of another railroad in Massachusetts.
TransloadX operates a facility in Framingham, Massachusetts, leased from CSX, where it moves freight from rail to other trains, trucks and ships — a process known as transloading.
A city councilor in Framingham wrote in December that TransloadX operates without necessary permits by claiming it’s a railroad and thus exempt from local requirements. Last June, the city sent a cease-and-desist letter to CSX alleging it violated city zoning laws by leasing property to companies including TransloadX.
Hardenbergh suggested TransloadX is seeking the Maine lease to become classified as a railroad, changing oversight to the federal level and letting it duck regulations in Framingham. In a later filing, he added that the company is listed as a switching railroad in New Hampshire when it doesn’t operate there.
The company argued TransloadX and TransloadX-RR are separate, and said Hardenbergh did not provide enough evidence for his claims. It said working to become a switching railroad shows it does intend to operate the freight lines in Maine.
More requests to delay or stop the exemption were filed last week by the Brotherhood of Railroad Signalmen and the Cumberland & Knox Railroad.
The Brotherhood, which represents professionals working with rail signals, said the lines are still subject to labor protections attached to CSX’s Pan Am acquisition.
It asked the board to determine whether those protections still apply, whether a lease would trigger more and if CSX can make the transfer without additional labor review while those are in effect.
The Cumberland & Knox Railroad, meanwhile, runs freight lines from Rockland to Brunswick and Belfast to Burnham, with yards in Rumford and Skowhegan.
Among other objections, it said CSX hasn’t upgraded or maintained the two lines as promised, and responsibility for future upkeep is unclear. It argued the notice of exemption was misleading because it presents the move as an acquisition rather than a lease.
CSX said it has maintained the lines and employees shouldn’t be negatively affected.
Parties involved in the filings were previously part of a competitive bidding process, according to DeWaele. He said they are trying to use regulatory channels to create a false narrative.
The Surface Transportation Board directed TransloadX-RR to respond to the allegations by May 4. It didn’t set a timeline for an exemption decision.
