By Kathy McCarty
Staff Writer
The rail line formerly operated by Montreal, Maine & Atlantic Railway (MMA) is under new ownership, according to Maine Department of Transportation officials.
The announcement was made Tuesday that a five-member selection committee has unanimously chosen Eastern Maine Railroad (EMR) — a Canadian-based company and subsidiary of J.D. Irving, Limited — as the operator of the Aroostook Lines, which is the state-owned portion of the former MMA route that stretched between Millinocket and Madawaska.
“The decision was reach unanimously by the selection committee last week, following presentations by Rail America on Tuesday, March 29, and by EMR on Wednesday, March 30, and subsequently approved by Gov. LePage before the weekend,” said Denis Berube, director of planning and transportation services, Northern Maine Development Committee.
“The committee was composed of Nate Moulton, the state rail coordinator at MDOT; his boss, Rob Elder, who runs the MDOT office of freight transportation; Travis Turner, who runs the Louisiana Pacific (LP) plant in Houlton; Gary Hunter, of Railroad Industries; and myself,” said Berube.
One other company had made it to the final three, but decided to withdraw from the competition for ownership.
“Patriot Rail made the decision of bowing out of the competition during the previous week, citing other important investment projects they are currently involved with,” Berube said.
Back on March 3, Berube said all finalists were provided with the same list of contacts consisting of mainly shippers, potential shippers and people of interest, as they related to railroad activities.
“The purpose was to allow the candidates a chance to build a more accurate proposal, based on conversations with the businesses, regarding shipping requirements, timelines, car loads, expectations and anything else relevant,” he said.
All candidates sent representatives to The County in order to spend both time with shippers and to get a chance to look at the tracks and get a general feel for the region.
“When it came to the final presentations, both remaining competitors presented strong but EMR had more specific and detailed plans as to how they were going to do this,” Berube said.
EMR worked to discuss future rail needs with shippers and those with an interest in ensuring the line’s future.
“They (EMR officials) communicated with most everyone involved, had a strong operating plan, excellent capital backing, an extensive array of operating and maintenance equipment on hand, strong safety and personnel development programs, realistic pro-forma expectations and plans for business development,” said Berube. “Beyond that, they conveyed a very strong commitment to providing reliable service to event he small rail shippers in The County.”
In a number of cases, said Berube, they’ll also be able to provide something new to some of the shippers — which is routing options over the other carriers which are CN, MMA and Pan Am — at their interchange points.
EMR currently operates the rail line between Vanceboro and Brownville Junction. The EMR rail line connects the New Brunswick Southern Railway with the MMA. While the final terms of the lease agreement have not been finalized, EMR will be responsible for maintenance and operation costs associated with the rail line.
“As things stand, the lease agreement is presently being worked on by MDOT and may be finalized as early as the end of the week or early next. No snags are anticipated and, for all intents and purposes, this will be a go,” said Berube.
Along with the 233-mile main stem from Millinocket to Madawaska, the state also purchased MMA branch lines to Caribou, Presque Isle, Easton, Houlton and Limestone. This section of the MMA became available when the company announced plans to abandon this section of railway in 2010. The state purchased the rail line for $19.1 million in January of this year.
Maine voters approved a bond referendum last June that designated $7 million to purchase the railway. In addition, the MDOT was notified that it will receive $10,546,436 in TIGER II funds that will help fund improvements to the tracks.
A public request for proposals was issued by MDOT in December for operations and maintenance of the Aroostook Lines, with five proposals received, including one from EMR.
According to an MDOT release, “This portion of the MMA Railway is a vital economic corridor and transportation asset in northern Maine, with over two dozen businesses in the region utilizing this section of the railroad.”
“Though there is no current official date for a handoff, EMR feels very confident that they would be ready to take over in plenty of time,” prior to the end of the current operating agreement between the state and MMA in June, thus preventing a disruption in service, said Berube.
“All attempts will be made towards a seamless transition in service,” he said.
For over a year and a half business, state and local officials have worked to ensure a smooth transition in rail service that would prevent the loss of an estimated 1,700 jobs directly and indirectly related to the use of rail in Aroostook County. It’s been a long haul, but one well worth it, according to Berube.
“It’s been a long 19 months since all this started. This was something The County couldn’t do without and was well worth the effort by all involved. The ball is now in EMR’s hands. It will be interesting to see where they can take this in the near- and long-term,” said Berube.
