Maine rail woes could halt fertilizer shipments

Portland, Maine-Operators of Montreal, Maine & Atlantic Railway hope the day doesn’t come that they will have to stop serving the northern third of Maine, where they transport about 5,000 tons of fertilizer every year, along with potatoes, paper, and lumber. But that possibility is looming while talks continue between the railway and state officials about abandoning 233 miles of track that stretch from Madawaska to Millinocket because of losses estimated between $4 million and $5 million a year. About half of the service line in Maine could be affected by the slowdown, caused by the recession and a decline in the housing market, which has sharply reduced shipments of lumber, plywood, and other building materials. Notice has already been filed with the federal Surface Transportation Board. “We are actively engaged with the state of Maine to determine if there is a possible solution other than abandonment,” Robert Grinrod, railway president and CEO, told Green Markets. “We feel these discussions are proceeding well and will produce a solution to the problem. At least for this spring we do not expect an impact on shipments to this area, including those involving fertilizer.” Grinrod said fertilizer shipments are carried from all areas in the eastern part of the country plus Canada. According to press reports, the state has been looking to see whether it can buy the railroad, which dates back to 1891, when the Bangor and Aroostook Railroad was incorporated and began laying track. The line served as a connector between the isolated and sparsely populated expanses of northern Maine and points to the south. Montreal, Maine & Atlantic bought the railroad in 2003 and now owns 774 miles of track that run from Maine to Montreal, with a short side line into Vermont. The company has 225 employees and is based in Hermon near Bangor.