CSX Acquisition of Pan Am Railways

I'm getting those ads too, and a lot of them! CP is seriously spending some money on advertising Searsport. It's truly looking like massive new developments are in store for the area, not something I would have guessed in a million years. Makes one wonder what is in store for the MEC east of Waterville. It could actually become more than a lightly used rust bucket IF PAR's successor can play ball with CP.

CP seems to be dumping a lot into advertising targeting Maine / New England. I've been seeing this ad on my partners social media too, so they aren't just targeting people who spend their time talking trains

Sadly Facebook advertising is really cheap.... not sure why everyone is so shocked that CP is advertising their new property, in fact they have for years advertised intermodal services, developable industrial properties, ect via Google and other ad agencies. They also sponsor events and plug certain services, just like anyone who is trying to grow a business does.

CN9634 wrote: ↑Thu Sep 03, 2020 10:12 am not sure why everyone is so shocked that CP is advertising their new property . . .

I'm not shocked that they're advertising it; I'm just surprised that they're advertising it in such a blanketed/broad-brush way, e.g., inserting it into the feeds of every Instagram user in Maine. I'm honestly not sure if that's the best way to reach decision makers who are interested in shipping freight via land and sea, but I suppose it can't hurt, especially if it's as cheap as you say.

In all my years on social media this is the first time I've been served an ad from a freight railroad. That's part of where the surprise comes from, for me at least, and perhaps for others. Maybe if Maine already had a Class I railroad I would've seen such ads years ago.

Would be nice to know a bit more about the Searsport facility than is provided here:

https://www.maineports.com/searsport

There is no Wiki article for the Port. 35ft MLW (10' tidal range) draught tells me "nothing too big" calls there. Must wonder how much of their tonnage represents Ocean vs. Coastal shipping? The latter to me is "trading with the enemy".

With CP's apparent opinion that Searsport is an underutilized asset that is ready to be greatly expanded, I cannot help but wonder about Bucksport. Just on the other side of the Penobscot, but a couple of miles upstream (ie, not as directly on the sea as Searsport). Is there any potential to develop a site in Bucksport (presumably, the old mill site) as a port? If CN or NS or someone else (who is capable of funding the required capital investment) were to acquire the MEC, would there be the potential of introducing a port there?

As I write this out, I cannot help but think that even if you could do something in Bucksport, Portland is probably a better option that is not only closer to your end-markets, but is also going to be a lot cheaper to develop.

Safetee wrote: ↑Wed Sep 02, 2020 9:35 am my recollection is that after some struggles with the guilford empire in the late 1980s the state of new hampshire dot undertook a study of the ownership of all guilford lines in the state. they supposedly discovered that back in the 1800s new hampshire actually had acquired all the in state railroad right of ways, but not the tracks themselves.

If they did that then they were smart. In MA, the evil Turnpike Authority took a similar approach. They bought up the B&A from Riverside to Boston (where in boston? Cove? South Station approach?), and provided the NYC with a permanent easement to run their railroad and the Beacon Park rail yard.

mrj1981 wrote: ↑Thu Sep 03, 2020 11:39 am With CP's apparent opinion that Searsport is an underutilized asset that is ready to be greatly expanded, I cannot help but wonder about Bucksport.....Portland is probably a better option that is not only closer to your end-markets, but is also going to be a lot cheaper to develop.

Well, Searsport is on line, by grace of Eddie acquiring the BAR thence SOO/CP acquiring MMA with a quick stop as CMAQ, and St. John no longer is. So let's tout a small, but on-line, Port instead of one we need to interline to reach.

Bucksport apparently has no maritime presence. A paper mill was there but that closed during '14. The Maine Port Authority seems to place their chips on Portland, which, absent the "snowball in Hades", CP does not and will not serve.

Bucksport had some characteristics that could have supported port development but the site was far too small and with Searsport right next door utterly pointless.

While it's certainly true that social media advertising is cheap it's also carefully targeted. As MEC407 noted to have a targeted digital ad appear in our feeds here in Maine is pretty astonishing stuff. CP's message of "ship globally from Searsport, Maine" is even more impressive ...

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b&m 1566 wrote: ↑Wed Sep 02, 2020 7:03 am

I'm not sure the state of NH is interested in owning the NH mainline,

They actually would be, as it would make commuter rail planning and decisions easier being the landlord. Not to mention recent Federal funding granted to NH for the commuter rail project that could be used for purchase of the Northern. With a NHDOT ownership they can lease the track out to freight rights to VRS, and in turn the contract payments for that haulage could be applied towards the commuter rail operation deficit. While it won't balance the commuter rail loss, it could put a decent dent into it.

gokeefe wrote: ↑Thu Sep 03, 2020 7:20 pm Bucksport had some characteristics that could have supported port development but the site was far too small and with Searsport right next door utterly pointless.

While it's certainly true that social media advertising is cheap it's also carefully targeted. As MEC407 noted to have a targeted digital ad appear in our feeds here in Maine is pretty astonishing stuff. CP's message of "ship globally from Searsport, Maine" is even more impressive ...

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Global shipping has been going on from Searsport for years, its just that the Class I rail connection now opens up greater opportunities from a broader inland network. Likewise for Portland minus the Class I connect.

NHN503 wrote: ↑Thu Sep 03, 2020 8:38 pm

b&m 1566 wrote: ↑Wed Sep 02, 2020 7:03 am

I'm not sure the state of NH is interested in owning the NH mainline,

They actually would be, as it would make commuter rail planning and decisions easier being the landlord. Not to mention recent Federal funding granted to NH for the commuter rail project that could be used for purchase of the Northern. With a NHDOT ownership they can lease the track out to freight rights to VRS, and in turn the contract payments for that haulage could be applied towards the commuter rail operation deficit. While it won't balance the commuter rail loss, it could put a decent dent into it.

Except, no one in their right mind would sell it to them without an agreement to being the sole freight carrier in perpetuity until self releasing those rights.

CN9634 wrote:Global shipping has been going on from Searsport for years, its just that the Class I rail connection now opens up greater opportunities from a broader inland network. Likewise for Portland minus the Class I connect.

So this brings up an interesting point ... I thought the thesis here was that neither Searsport or Portland could ever be large enough to justify interest from a Class I. Even with Eimskip or bulk shipping there just wasn't ever going to be sufficient capacity for anything.

That apparently is no longer true at all which remains a pretty stunning turn of events. I'm not quite past the "shock factor" of seeing Class I railroads move in on this territory when the wisdom in these parts has always been "they're too small to matter".

There are hints of "well because the Panama Canal is wider now these ports are viable" and also "the Class Is are going after East Coast business" but none of this reasoning seems to provide a compelling answer to "Why Maine?".

Is this a draft issue? Does Maine have better and deeper berths than other New England ports? Are there unsolvable capacity problems elsewhere? Not enough land for development?


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I dont think CMQ advertised much on social media, although they did have a large sign at the BIA terminal with several F barns up on the trestle in Eastman, Quebec.

Maine would have lower labor costs & dramatically lower property costs than elsewhere in New England. As everybody on this panel knows, if the seaport destination is Europe, Maine is closer. Boston has problems with available space to develop, especially private land. I imagine dealing with Massport or the City of Boston would be a nightmare. But is the infrastructure available, is connectivity good, is there a workforce available?