State of Maine RFP for Operator of Former MMA Track

carchecker wrote:According to the Maine DOT there are five bids for the operation of the line. They include Eastern Maine Railway (NBSR), Rail America, Springfield Terminal, and two groups I've never heard of...Myles Group and Patriot Rail. Can anyone give any insight as to who/what these final two groups may be?

EMRY honestly makes the most sense logistically for the existing traffic. That said, I'm pretty surprised ST/PAR put in a bid. Maybe I'm missing something, but what do they really have to gain out of this? Without overhead rights all the way to NMJ, they'd essentially gain a new network of disconnected branchlines, and are already capable (and actually doing) of getting a northern feed from the EMRY/NBSR. I just don't see them putting a whole lot into operating this, and anyone that thinks their service would be an improvement over MMA is likely mistaken. The only longshot I can see here is that they forsee MMA going away and want to position themselves to be the most logical successor.

The shortline holding groups are no big surprise. I figured Patriot Rail would be right there. That is run by Gary Marino, the co-founder and former CEO of RailAmerica. They are agressively acquiring properties and seeking contract operating opportunities nationwide in an attempt to expand their holdings (Huh, almost sounds like RailAmerica all over again...). I'm a little surprised RailAmerica has any interest. This doesn't seem like a large enough operation for them based on the economics in the RFP. Again, this could be another "strategic positioning" thinking the MMA will not be around for the long term.

ShortlinesUSA wrote:That said, I'm pretty surprised ST/PAR put in a bid. Maybe I'm missing something, but what do they really have to gain out of this?

I guess they'd gain whatever it is that RailAmerica and those other organizations are hoping to gain.

PAR's bid doesn't surprise me at all. They bid on stuff all the time. Rockland Branch operator, MBTA commuter rail operator, you name it, they've bid on it.

I wasn't aware they bid on the Rockland branch. MBTA I can see, as there seems to be some money to be made there. Based on the earlier analysis of the RFP, it just doesn't seem like there is a whole lot of money to be made here. Seems to be more of a hassle than it would be worth to PAR to me, hence my surprise. I am thinking more of getting more motive power, crews, etc. But then again, they'd probably just drag some dead power out of Waterville and put those back to use. GP9s could probably be revived pretty quickly...

It seems to me like it would be less hassle for PAR, who already has a well-established presence in the state, than it would be for those other companies (EMRY/NBSR excepted) who would have to basically start from scratch up here.

I agree, it doesn't look like anyone is going to get rich off this thing. But I could see it potentially being a bit more profitable for PAR than the others (again EMRY/NBSR excepted) because PAR already has a lot of infrastructure in place and it would basically be the equivalent of reactivating some of their old branches, rather than starting up a whole new railroad.

It seems like the "outside" companies -- RailAmerica, Patriot Rail, Myles Group -- would have the biggest up-front costs, and the most to lose if things don't go well.

Personally, I don't see a worse scenario than granting ST/PAR anything additional to their current operations. Guaranteed all mileage they would obtain with taking over MMA would be down to 10mph within six months if it isn't already. They can barely keep trains on the tracks with what they have now. The recent Waterville derailment had virtually a whole work week of no trains down to the Bucksport mill. Verso is totally pissed at their lack of service right now. So much so, they are prepared to add an additional 250 trucks to the road per week to make up for the current traffic that PAR can't seem to keep up with. How would that kind of service help Millinocket?! If I were at MDOT, I'd laugh in the faces of ST. It takes them three days to run an NBWA from point to point. Granted they have existing structure, but unstable is a compliment.

Think about the comparison with NBSR. The CP main is still at 30-40 in spots all these years later. They're "surrounded" by roads they already connect to. Besides the Brownville-Millinocket rights, the trackage would be their's. I see way better customer service coming out of their camp as well.

I must admit that I was surprised about Rail America. Is it just me or was MMA not included in the list mentioned earlier?

"How would that kind of service help Millinocket?!"

The new short line will not have access to Millinocket mills.

Sorry 'bout that Millinocket bit. For a minute there, I forgot MMA isn't totally going away and will still serve it.

Now that would be a first now wouldn't it.

Just announced on the evening news, Eastern Maine Railway has been chosen to operate the line. I'll look for a link.

More info: http://www.railroad.net/forums/viewtopi ... 03#p918703

On January 18th, I posted........

Highball wrote:I understand the deadline for bids for a new operator closes Thursday, Jan 19th. My bet is with the Irving Corp., which owns New Brunswick Southern / Eastern Maine Railway......St. John N.B. - Brownville Jct. They have extensive woodland holdings in Northern Maine.

I am not one to say, " I told you so "...........but then again, yeah.........I am.

So, do I get at least a cookie ? Hey, just kidding, to be sure.

The Irving Corp., to say the least, are astute business people, they will make their newest operation work.

Say what you will about the Irving empire, I agree. If any outfit can turn this line around, it's the EMRY. There is no denying that the Irvings virtually own New Brunswick, but most of the province would be a backwater without them. They're very, very good at whatever they do. K.C. Irving was a remarkable person ("astute" is, indeed, the word), and his family has inherited that business acumen.

Since EMRY doesn't physically connect with the ex-MM&A track they will be operating,I assume MM&A will agree to provide trackage or haulage rights to EMRY? Or is the interline traffic to/from EMRY expected to be so small that it would simply be interchanged with MM&A at Brownville Jct and Millinocket?

johnpbarlow wrote:Since EMRY doesn't physically connect with the ex-MM&A track they will be operating,I assume MM&A will agree to provide trackage or haulage rights to EMRY? Or is the interline traffic to/from EMRY expected to be so small that it would simply be interchanged with MM&A at Brownville Jct and Millinocket?

EMRY has run a few woodchip unit trains in the last several months from Northern Maine over the ex-MMA trackage with its own units. Interesting what additional power NB Southern / EMRY will acquire to service its " expansion ". Their present road power appears to be stretched, with their 8 GP-38's and road slug and recent break downs on the road to some of these units.

In addition, their traffic with PAN AM is very " healthy " and growing, at the Mattawamkeag exchange, with their new symboled trains........SJWA / WASJ.....Saint John N.B. / Waterville, Me.

I think there will be a lot more fibre moving over these lines, both heading east to NB to supply Irving's demands as well as south to PAR for their mills. Not sure how the new carrier will connect with themselves at Brownville (haulage or trackage rights), but I'm guessing that the majority of the business will head east from there to Keag, where it will either be handed off to PAR or continue east to Saint John. There's not much going to and from the county that needs to be routed over the MMA (old CP main) and I'm of the opinion that what little business there is (i.e. lumber, fertilizer, oils, etc) that is moving to or from the midwest or the east coast will find it's way over PAR, which unlike the MMA, connects directly with the NS and CSXT.