By Kathy McCarty
Staff Writer
Local, state and federal officials agree they’re in it for the long haul, as all continue to work to find a way to maintain rail service between Millinocket and various points in Aroostook County. For the past two weeks, lawmakers, business owners and municipal representatives have been looking for a solution that would prevent shutdown of the only rail corridor in and out of Aroostook.
Sen. Olympia Snowe spoke at length March 17 with Montreal, Maine & Atlantic (MMA) CEO Robert Grindrod about the fiscal challenges facing the rail company and the necessity of preserving northern Maine freight rail service to ensure the prosperity of the industries who rely on the service.
“Shutting down this rail line would have a devastating impact on Maine’s economy and the industries that rely on that rail service,” said Snowe. “This is a vicious circle we’re fighting here as we need the rail lines to sustain the industries and yet we need the industries to sustain the lines — one cannot survive without the other.”
Snowe said it won’t be just Aroostook businesses that will be affected by the shutdown.
“A number of critical industries in northern Maine and the rest of the state rely on access to rail to transport their products. I will continue to do everything I can to support retaining that vital service,” said Snowe.
As a senior member of the Senate Commerce Committee, which has jurisdiction over the railroad industry, over the past two months Snow has spoken with the Federal Railroad Administration, the Surface Transportation Board (STB), the Maine Department of Transportation, private industries including the CEO of Fraser Paper Jeffrey Dutton and local officials in an attempt to ascertain all possible options available to her to continue the essential service this railroad provides.
Congressman Mike Michaud also took time March 17 to share his concerns with the STB, sending a letter to Chairman Daniel R. Ellliot, requesting the hearing in Maine on the MMA’s application to abandon 223 miles of rail line be held in Aroostook County.
“I think it would be good to get these folks out of Washington and up to Aroostook County,” said Michaud. “That way, they can see and hear firsthand how this proposed abandonment would affect the region’s economy.”
In the letter, Michaud requested the hearing be held this spring, noting it was “absolutely imperative that the individuals that will be affected by the discontinuation of rail service have an opportunity to be heard by the STB.”
While the proposed abandonment would affect the entire state, Michaud said, the counties of Penobscot and Aroostook “stand to lose the most from the loss of freight rail service.”
Since then, Gov. John E. Baldacci has presented bond proposals to fund road repair and to preserve the rail line. The first would seek voter approval for $79 million in bonds for road, rail and harbor projects as well as environmental and energy initiatives. The second, sponsored by legislative leaders, proposes $99 million in voter-approved bonds for many of the same initiatives but includes more money for energy efficiency projects.
MMA’s decision to pursue abandonment of the northern rail line was the result of dropping revenues brought on by economic slump that began about two years ago. In addition to the drop in revenue, company officials cited the cost for maintaining the line as another contributing factor.
Municipal representatives and business leaders joined lawmakers in Augusta Monday to continue talks on the rail line.
During a session March 30 in Augusta, MMA President Grindrod was asked what it would take to keep the 240 miles of tracks operational. Grindrod estimated track repairs would be necessary, to the tune of $15 million — averaging $3 million to $4 million for upkeep annually — to run full-speed trains on the tracks.
Theresa Fowler, executive director, Presque Isle Area Chamber of Commerce made the trip south to attend the meeting.
“Progress is being made,” said Fowler.
She indicated it would take a combined effort at all levels to find a workable solution.
“It will take a very concerted, pointed campaign to make the people of the state understand the importance of rail (in Aroostook),” said Fowler, noting representatives from the Portland, Lewiston and Auburn attended the session and expressed their support.
Fowler said there are still many who do not understand but she felt Monday’s meeting ended on a positive note.
“LEAD (Leaders Encouraging Aroostook Development) representatives were there, Fraser Paper reps attended, as did representatives from Louisiana Pacific. There was certainly a lot of support for the bond issue, as well as a lot of discussion about unemployment and the impact discontinuing the rail line will have on northern businesses,” said Fowler.
Rep. Mike Willette, D-Presque Isle, attended the session as well.
“It went well. Grindrod was asked a lot of questions — what got MMA in the position they’re in in the first place, etc. The company was on the defensive,” said Willette.
Willette said there was some argument over letting “a free market do what it does.” While he supports in theory “free markets” and allowing supply and demand to determine a business’s success, Willette said their are some instances when that’s just not workable.
“We have too much riding on the rail service. We have several businesses that depend on it, not just one or two,” he said.
Willette said if the state purchased the rail line for $20 million, there were a number of ways it would benefit the state.
“I’ve tried to impress on the other side, even if we do buy for $20 million, we won’t be running it. There are three or four other rail companies ready to take control. If that doesn’t work, we’d be left with the rail — scrap steel worth the money we paid for it,” said Willette.
As a realtor, Willette also saw the value in the land the track sits on.
“The state wants a huge south-north electric corridor (for transmission lines), that would be ideal. The area’s already cleared, the rail bed is built up and would provide easy access for trucks hauling equipment to build the transmission line,” he said. “Or we can sell/lease to ATV/snowmobile clubs.”
Willette said while many have suggested abandoning the line and transporting goods by truck, it could be cost prohibitive for many businesses and just unfeasible for others.
“When I did my portion on heating oil/LP gas and the cost of transporting it by rail (vs. truck), I couldn’t believe the amount that’s moved by train. Each tanker carries three to four trucks’ worth. (To transport by truck) you’re talking about 45 percent more traffic on roads that are already beaten to death,” said Willette.
He said the tourism industry is being pushed heavily, since Maine is called Vacationland, but the added traffic from the need for more trucks to transport goods, should rail service end, would create a major safety issue. There’s also the added cost of doing business and the environmental impact.
“A truck carries less freight than a freight car can and gets about three miles per gallon. A train gets about three to four miles per gallon but can haul several freight cars. That makes for a big environmental impact and is far more fuel-efficient,” said Willette.
Willette said the lack of available trucks and drivers also factors into the equation.
“There’s not enough trucking companies to compensate, should rail service come to an end. And a lot of customers prefer rail — for convenience and because it’s the only method capable of moving some products. Louisiana-Pacific, in New Limerick, can’t ship anything other than on rail, due to the long wood products they make. That industry would be gone,” said Willette.
Ryan Bushey, human resources manager for Louisiana-Pacific, attended the meeting in Augusta and told officials that rail service was a critical element to his mill’s success and that it was vital to the company’s continued growth.