Railroad Forums 

  • Madison Branch

  • Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.
Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.

Moderator: MEC407

 #1432279  by b&m 1566
 
I couldn't help but notice that nature is quickly taking over this branch. Not sure when the last train to North Anson was but the Rte. 8 crossing in Anson, ME has been paved over. Should we expect an abandonment filing to come soon, or will Pan Am hang on incase the mill decides to go back to rail?
 #1432302  by Mikejf
 
The mill wanted rail. But the track had been poorly maintained for so long that it was not worth the investment needed by the Railroad for the cars per week the mill needed.
 #1432306  by KSmitty
 
It's very unlikely that the mill site will wish to ship by rail again, having closed last year. The site is under redevelopment, but given the recent history of those I wouldn't be too optimistic.
 #1432332  by Cosakita18
 
Although the Madison mill complex is being redeveloped, it will most likely be smaller scale light industrial operations that either won't require rail service or won't generate enough carloads to warrant the millions of dollars worth of work that the branch needs just to be passable.

PAR wasn't willing to maintain the branch to service the Madison mill when it was generating 30-50 carloads per week, they certainly won't be sinking money into the branch to service a few scattered small customers.
 #1432349  by MEC407
 
As #45 would say: "SAD!"
 #1432352  by KSmitty
 
The biggest advantage to industrial development is that it is only a half hour dray to an intermodal terminal. Which is how all future business from Madison will move, if it is to leave the state on Pan Am's rails.
 #1432354  by b&m 1566
 
I wasn't aware the mill closed. Was the lack of rail part of the demise or unrelated?
 #1432377  by KSmitty
 
b&m 1566 wrote:I wasn't aware the mill closed. Was the lack of rail part of the demise or unrelated?
It wasn't quoted as a reason in the press, but I'd imagine that the lack of rail service effected the mill's viability.
 #1432607  by MEC407
 
It's a bit confusing. There is mention of "the high cost of energy in New England" — but as you said, they have their own hydropower onsite. I'm not sure if that means that the hydropower isn't enough for the mill's needs (e.g. they also have to buy electricity from the grid to supplement the hydro), or if by "energy" they meant heating fuels like natural gas or oil.

Regardless of electricity costs or heating costs, it appears that lack of demand for their product is what killed them.
 #1432624  by b&m 1566
 
So, almost 4 years ago the mill switched to trucks and last year the mill closed. I'm wondering if the switch to trucks was an early warning signs that the company wasn't doing so well.
 #1432765  by craven
 
Interesting the Madison paper Mill closed....

Corrugate Industry has raised the cost of Kraft boxes 8% Sep. 2016, 7% June 1st. 2017, and rumor has it another increase is in the works for this fall.

All due to increases in paper costs !
 #1440509  by BandA
 
Perhaps the hydro facility had been sold & the mill had to pay market rate for electricity?
 #1440760  by gokeefe
 
BandA wrote:Perhaps the hydro facility had been sold & the mill had to pay market rate for electricity?
I believe that was indeed the case. Most of the mills have sold their hydro assets within the past 15 years in order to survive. There are a fair number of mill owned projects remaining. In general it's a pretty reliable indicator of good financial health if a mill still owns the power assets. Sappi Westbrook and Woodland are two in particular that come to mind.
 #1505483  by backroadrails
 
Some good news out of Madison! I know Pan Am had been inspecting the branch for possible abandonment, so it maybe possible that the state gets the line, and could potentially rehab it, but that is a big what-if. I do know chemicals could be going over CMQ to GAC in Searsport, and would go to the mill by truck. It is still unclear if they will want rail service, but it would make sense to do so when getting chemicals for the product, rather than trucking them in. https://www.centralmaine.com/2019/04/10 ... BNXE77TxHo