Northern Maine Railroad to be Abandoned By Owner, State to Decide Fate 01/18/2010 05:42 PM ET Reported By: Keith Shortall The owners of more than 240 miles of rail line in northern Maine are planning to abandon the tracks this spring, citing losses of as much as $5 million a year. According to some observers, the last hope for the only rail service in northern Maine rests with the state. The Montreal, Maine and Atlantic Railway, formerly known as the Bangor and Aroostook, operates nearly 750 miles of rail line in Maine, Vermont, Quebec and New Brunswick. The problem, however, involves the 230 or so miles that operate from Millinocket up into Madawaska and Houlton. Robert Grindrod, President and CEO of MMA Railway, says the biggest problem has been a marked decline in demand for forest products, "I would says its been in decline for some time, and the recession of 2009 made it substiantially worse. The principle traffic on the line we're seeking to abandon is lumber and other forest products and I would say that demand for those products have been in decline in the Maine market, that is, Maine origins to other locations, since about the second half of 2006." The MMA initiated the abandonment filing back in August, but left open the hope that another rail company , or possibly the state of Maine, might come foward with an offer to buy the lines in question for a going price of over 20 million dollars. "We are looking and talking actively with the state of Maine. THey are the only other party that has contacted us thus far," said Grindrod. The prospects for a solution to the MMA's problem are not good according to Chop Hardenburgh. "Grim, the situation is looking grim," said Hardenburgh. He's editor of Atlantic Northeast Rails and Ports, an industry news letter based in Yarmouth, which first reported on the Railroad's plans to file for abandonment. "The state has no money. Other outside railroads are probably not interested because its a money-losing proposition. So our only hope is federal stimulus funding," said Hardenburgh. In fact, MMA Railway officials say they state has applied for so-called Federal TIGER grants to fund the purchase of the rail line, as well as a number of other projects. But MMA Railway Board Chair Ed Burkhardt says there are some 58 billion dollars in applications for a fund that totals just 1.5 billion. And he says the state of Maine hasn't made the Railway purchase a priority. "My eyes roll when I see some of the other requests were made. I think this is pretty vital that rail service be kept to the majority of Aroostook County, but they didn't prioritize this, so the chance of getting the stimulus money isn't good," said Burkhardt. State transportation officials could not be reached for comment on the holiday, but have said in the past, while the state is dedicated to preserving important rail lines, the economics have to make sense. The state already owns about 320-miles of rail lines. Only about 80 are in active service, the remaining 240-miles are being preserved for future rail use. The co-chair of the legislature's Transportation Commitee, Ed Mazurek (D-Rockland) says its unlikely that the state will buy the MMA's problem lines in Northern Maine. "The state is not in a position to lay out money to buy a railroad at this particular point," Mazurek said. Mazurek's constituency lives at one end of the passenger line that now runs up the coast from Brunswick. He says the next step should be to strenghten and expand those passenger connections in Maine. "The priorities right now would be to keep the Downeaster running because that's a very successful operation. And then there's also the priorithy to run a line from Portland and Brunswick, so then you can go from Rockland all the way to Boston and beyond. And then there's the western lines, the mountain division is being looked at, so the MMA is in a tough situation," said Mazurek. Barring a viable suitor to take over the lines, Atlantic Northeast Rails and Ports editor Chop Hardenburgh says he only sees only one saviour, and that would come in the form of a marked increase in the price of deisel fuel. "When the price of deisel was up over $5, the railroads were getting phone calls from people they heard from before, because the trucking price had gone so high, but it needs to come back to that and much more in order to make this viable," Hardenburgh said. But the MMA's Robert Grindrod says it'll take more than higher diesel prices to make the northern Maine lines profitable. "No I don't think so I think what has to go way up is the demand for lumber and other services and other commodities like oriented strandboard which is manufactured up there, and I would say until such time as there is an increase in demand in the housing market, I think there will be a problem up there," Grindrod says. The deadline for the US Department of Transporation to announce the winners of the TIGER grant awards is February 17.
The Railroads are at a serious disadvantage compared to the trucking industry. The truckers are subsidised by the taxpayer. The railroads have to maintain the track and pay taxes on the right of way in addition to any repairs. Maybe there will be enough traffic to show a profit. Truckers use the roads almost for free. The truckers do pay a road and fuel tax but it isn't much compared to what the railroads costs are. In the case of the Port of Tillamook Bay Railroad. The tracks were washed out for 16 miles. The environmentalists and government regulators placed so many restrictions on the POTB repairing the track it has been abandon. If 16 miles of Highway 6 were washed out the highway department using tax dollars would have the road fixed in short order. No environmental studies or anything else would be in the way and the road would be repaired at no cost to the trucking industry. The railroads should be so lucky!
I wonder what happens, if the economy ever starts to recover? The RR is gone, so it will be trucks a-plenty. Followed by screaming from area residents about their roads and then millions poured out on those roads.... Boxcab E50
Morning Charlie: THis is one comment where you and I "part company". I worked for Ed a couple of times in my career and you will never find a more professional and compassionate railroader anywhere. There have been several times where he has tried to preserve and grow service on many lines that other roads gave up on and often but not always they survived and prospered. If Ed and Bob Grinrod say the lines can't make it ,you don't need to look any further for justification for their existence. They know their businees and have a passion for the industry. Charlie, don't believe all the gossip and falsehoods that folks always like to heap up on a wise and sucessful man. You are are an experienced "rail" and I respect your opinion. Barry
