Economy could be derailed if service ends
LACK OF FREIGHT — Trains like this one spotted in Presque Isle crossing North Street on Saturday may be a thing of the past, if Montreal, Maine and Atlantic’s proposal to abandon tracks between Millinocket and Madawaska is approved. MMA cites a drop in freight revenue as a key factor for its decision last fall to discontinue 240 miles of railroad track in Aroostook County.
Staff Writer
Politicians and local business and community leaders continue to look for a solution that will keep rail road service active between Millinocket and Madawaska, should Montreal, Maine and Atlantic gain federal approval to abandon roughly 240 miles of track. MMA cites a drop in freight revenue for the company’s decision to discontinue the only train service to much of Aroostook County.
During a session in Augusta last Thursday, local leaders shared their concerns with elected officials.
“I spoke on behalf of several community leaders, expressing how vital rail is to industry up here, at present and for potential future development,” said Rep. Mike Willette, D-Presque Isle.
Willette carried with him letters from local officials, including: Theresa Fowler, executive director, Presque Isle Area Chamber of Commerce, which covers 13 communities from Presque Isle to Ashland; Dana Fowler, Presque Isle’s interim city manager; and Larry Clark, executive director, Presque Isle Industrial Council.
Each letter supported Rep. Ken Theriault’s bill, LD 1748, “An Act to Authorize a General Bond Issue to Purchase and Upgrade Trackage of the Montreal, Maine and Atlantic Railway.”
“The railroad plays a vital part of the economy of the area of Aroostook County that we serve. Manufacturers and distributors rely on the railroad for delivery of raw materials and export of products,” stated Fowler. “Residents of the area, without realizing it, also depend on the railroad for delivery of petroleum products which are used for transportation and heating purposes.”
Willette said products are shipped to and from Aroostook regularly by rail.
“Materials are shipped to southern Maine, such as crushed gravel from Lane Construction, of Prseque Isle, while other companies have products shipped here via rail, such as J.M. Huber in Easton, which has wax and resin brought in by train,” said Willette, noting the discontinuation of rail service to Aroostook County will have a devastating impact on businesses throughout northern Maine.
Willette said McCain Foods, in Easton, was one example of the high cost that would come with losing rail service.
“McCain officials told me the loss of rail will boost their cost of shipping by about $1 million a year. That could lead the company to consider taking its business — and jobs — elsewhere. They’re here because the costs of doing business are reasonable. If they go up, the future could be uncertain,” said Willette, adding that losing the rail could have an impact on hundreds of jobs at McCain’s, not to mention all the other businesses that would be negatively affected.
“Louisiana Pacific, in the Houlton area, just built a new facility. The facility was built with belief rail would be in place. Their product can’t be trucked (due to dimensions),” he said.
Willette said Presque Isle’s intermodal system began seeing an increase in use in the last couple years, thanks to growth in the wind turbine industry.
“Had we not had the intermodal system, heaven knows how long it would have taken to stage the wind farm. Larry had parts destined for both Maine and Canada shipped to the intermodal site last year, with plans in the works for future shipments. That won’t happen without an active rail line,” said Willette.
Clark’s letter stressed how devastating closure of the line would be for area businesses.
“The lack of rail service to our community would adversely impact businesses that presently include: Maine Potato Growers, TaterMeal, McCain Fertilizer, Columbia Forest Products, Dead River and Lane Construction Corp. Also, any loss of rail service impacts our ability to promote further devleopment of Skyway Industrial Park,” stated Clark.
According to Clark, the Industrial Park includes several DEP-permitted parcels for development, 5.5 miles of rail lines presently serving three major industries, and an intermodal yard.
“These assets are owned by the city and administered by the Presque Isle Industrial Council. The intermodal yard was most recently used in 2009 for trans-loading wind turbine components from railcars to ground storage and subsequently transported by truck to sites within Maine and Canada. Interest has been expressed for similar use in 2010,” added Clark.
Clark said based on Maine’s desire to promote wind turbine development and the availability of an intermodal yard, “continued rail service becomes critical for these projects.” He noted he’s currently working with two companies that will require rail service and without this service, “the projects are in question.”
Fowler’s letter reiterated the importance of maintaining rail service.
“The railroad is an essential part of the economy in Aroostook. The city of Presque Isle has a particular interest in the railroad because the city owns an intermodal yard and over five miles of track. The loss of rail service would be a major blow to the city since the intermodal yard and railroad track represent a substantial financial investment,” wrote Fowler. “The loss of rail service to our area would adversely affect the transportation of wood products, petroleum products, agricultural products and heavy equipment in our region and beyond.”
While some businesses will be impacted directly, if rail service is discontinued in Aroostook, the end result will be far-reaching, as the trickle-down effect spreads.
“Although we do not directly use rail, all of our suppliers do. The loss of rail will be extremely detrimental to these mills, most likely forcing many of them to close,” said Matt Bell, owner of Northeast Pellets in Ashland.
Bell said if that happens, he’ll have to go elsewhere for raw materials for his business.
“This will have an adverse effect on my raw material supply chain, forcing me to extend to a much greater geographic area. I, in turn, will incur additional transportation expenses, making it difficult for me to be price competitive,” said Bell.
If rail service ends, businesses will be forced to seek other transportation options.
“That pretty much reduces shipping in and out of the County to trucks. If we lose rail, the over-demand it will put on already failing roads will be immense,” said Willette.
Willette said there’s more to it than just the increased cost of shipping by truck.
“You’d have extra traffic on the roads, which means an increase in infrastructure costs to maintain roadways, then there’s the safety factor. Without a workable bypass, you’ll have increased truck traffic carrying all types of loads,” said Willette.
