Wonder who might be lurking to buy a piece or the rest of the MMA railroad?? any ideas? Irving? Rail America?
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Possible buyers for MMA ?
- Discussion of present-day CM&Q operations, as well as discussion of predecessors Montreal, Maine & Atlantic Railway (MMA) and Bangor & Aroostook Railroad (BAR).
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Given the recent deveolpments of the potential new traffic from Millinocket, it may behoove Cates to secure its access to Searsport with its own operation. IMHO the Moosehead would be a natural extension for Irving for direct access into Montreal however I'm not sure what their arrangement with CN entails as far as rates and volumes and when it expires.
I can confirm that several potential buyers (at least 4) have looked at the property recently.
So, I suppose you're baiting us by not telling us who was around or when they were? What part of the property were they checking out? As for Irving, they could totally bypass CN east of Montreal if they purchased the Moosehead trackage. I'm just thinking MMA isn't as eager to part with all their trackage as much as some are imkpying.
"As for Irving, they could totally bypass CN east of Montreal if they purchased the Moosehead trackage."
Yes, but at a prohibitive cost.
Yes, but at a prohibitive cost.
"As for Irving, they could totally bypass CN east of Montreal if they purchased the Moosehead trackage."
"Yes, but at a prohibitive cost."
Maintenance costs? If Irving was to shift all traffic away from CN and send it across the Moosehead along with traffic off the old BAR, the added traffic may make it economically feasible.
"Yes, but at a prohibitive cost."
Maintenance costs? If Irving was to shift all traffic away from CN and send it across the Moosehead along with traffic off the old BAR, the added traffic may make it economically feasible.
Maintenance cost, operating cost, equipment cost...
CP couldn't make it work running two trains each way/day, Iron Roads couldn't make it work running one train each way/day, MMA certainly hasn't been able to make it work running one train each way every other day. How much traffic is Irving generating?
CP couldn't make it work running two trains each way/day, Iron Roads couldn't make it work running one train each way/day, MMA certainly hasn't been able to make it work running one train each way every other day. How much traffic is Irving generating?
"MMA certainly hasn't been able to make it work running one train each way every other day."
Then why did MMA keep it? Why not turf that to the state as well? It must be at least breaking even for them. I agree CP and Iron Roads was unable to make it work for numerous reasons, however with Irving's deep pockets and a potential in-house 1000 mile haul for its traffic to either CP and CN in Montreal it makes more economical sense than splitting that haul with MMA at Brownsville or being held hostage by CN rates. I cannot comment of current traffic interchanged to CN. At one time a couple of years ago it was less than a full CN train worth daily.
Then why did MMA keep it? Why not turf that to the state as well? It must be at least breaking even for them. I agree CP and Iron Roads was unable to make it work for numerous reasons, however with Irving's deep pockets and a potential in-house 1000 mile haul for its traffic to either CP and CN in Montreal it makes more economical sense than splitting that haul with MMA at Brownsville or being held hostage by CN rates. I cannot comment of current traffic interchanged to CN. At one time a couple of years ago it was less than a full CN train worth daily.
Cowford wrote:Maintenance cost, operating cost, equipment cost...Assuming the economy hasn't change since the days of CP, (ceterbis parabis) then theoretically no. But given the fact that the economy has changed, as well as other factors, then this is simply not true. For a time, CDAC was making things work, but given the politics of the railroad, it ultimately declined. Further, CP could have "fought the good fight" in the Maritimes but simply decided to refocus itself on the western part of the country. It was not a money losing venture but had seen several declines.
CP couldn't make it work running two trains each way/day, Iron Roads couldn't make it work running one train each way/day, MMA certainly hasn't been able to make it work running one train each way every other day. How much traffic is Irving generating?
Irving is picking up traffic lost by MMA. They are doing a damn good job at it too. They also have plans for distribution and logistics hubs in Northern and Central Maine that would generate traffic.
I don't care to comment on the MMA's business because it is just that, their business. I would like to point out some of the different factors here and give my opinion that yes, you can successfully run a railroad in Eastern and Northern Maine (With lots of work of course). That seems to be the point of all this arguing and I think we can leave it at that.
"Assuming the economy hasn't change since the days of CP, (ceterbis parabis) then theoretically no. But given the fact that the economy has changed, as well as other factors, then this is simply not true. For a time, CDAC was making things work, but given the politics of the railroad, it ultimately declined. Further, CP could have "fought the good fight" in the Maritimes but simply decided to refocus itself on the western part of the country. It was not a money losing venture but had seen several declines."
I agree. The one sticking point for all this being CN's role. After a quick google search found that the Irving/CN traffic and switching deal signed in 2002 to be 20 years. Not sure CN would let that go easily.
I agree. The one sticking point for all this being CN's role. After a quick google search found that the Irving/CN traffic and switching deal signed in 2002 to be 20 years. Not sure CN would let that go easily.
MM&A keeps the Moosehead sub for a simple reason, it is their most reliable connection to the outside world. Pan Am is not a friendly or reliable connection at Northern Maine Junction. The only other alternative was
to move freight north to the connection with CN in northern Maine. This route would not be feasible due to the extra miles having to travel. The Moosehead has some overhead traffic, CP freight headed to the Maritimes and what comes from Irving. CN made a long term deal with Irving. The CN route to the Maritimes is not very profitable, it would be even worse if CN would lose the Irving traffic, so they won't. Irving is very smart, they work everyone against each other. Irving has three outlets, CN, Pan Am, and MM&A, the best of all worlds. If MM&A fails, there is no guarantee Irving would come in due to the dearth of traffic generated by the line itself.
to move freight north to the connection with CN in northern Maine. This route would not be feasible due to the extra miles having to travel. The Moosehead has some overhead traffic, CP freight headed to the Maritimes and what comes from Irving. CN made a long term deal with Irving. The CN route to the Maritimes is not very profitable, it would be even worse if CN would lose the Irving traffic, so they won't. Irving is very smart, they work everyone against each other. Irving has three outlets, CN, Pan Am, and MM&A, the best of all worlds. If MM&A fails, there is no guarantee Irving would come in due to the dearth of traffic generated by the line itself.
Who are the potential buyers that have looked at the property recently?
One of the big issues with railroads in the Maritimes, and the MM&A's line is the fact that the Port of Halifax only has Canadian National as its only railhead, with CN setting all of the rates. Shippers through ports want competitive rates, hence the reason why barge lines navigate up the St. Lawrence River some 400+ miles west of Halifax to the Port of Montreal to drop and pick up containers as both CN and CP can compete for this traffic. It is too bad that the European and North American Railway did not reach its intended objective of Halifax back in the mid 1800s as conceived by John A. Poor as this line would have the port traffic from Halifax to both the Maine Central and the MM&A line across Maine in addition the the paper mill traffic to sustain it today.
One of the big issues with railroads in the Maritimes, and the MM&A's line is the fact that the Port of Halifax only has Canadian National as its only railhead, with CN setting all of the rates. Shippers through ports want competitive rates, hence the reason why barge lines navigate up the St. Lawrence River some 400+ miles west of Halifax to the Port of Montreal to drop and pick up containers as both CN and CP can compete for this traffic. It is too bad that the European and North American Railway did not reach its intended objective of Halifax back in the mid 1800s as conceived by John A. Poor as this line would have the port traffic from Halifax to both the Maine Central and the MM&A line across Maine in addition the the paper mill traffic to sustain it today.
Prince Rupert is served only by CN. However, Canada has the Port of Vancouver served by both Canadian railroads. Would Halifax be better served with two railroads or leave it with just one?