MMA to Sell MORE Northern Maine Trackage

[KSmitty]

HERMON, Maine — Montreal, Maine & Atlantic Railway announced a tentative deal Tuesday to sell 25 miles of railroad tracks and effectively end a long-running dispute by allowing another shipper access to a Madawaska paper mill.

If the Federal Rail Administration and Maine Department of Transportation approve, J.D. Irving subsidiary Eastern Maine Railway will purchase the Madawaska-Van Buren-St. Leonard railroad line for an undisclosed amount. The governmental agencies have liens on the property. The sale could be completed next month, said Robert C. Grindrod, MM&A’s president and CEO.

Link http://bangordailynews.com/2011/12/06/b ... aska-mill/
First Posted on the GRS yahoo group, wanted to share here.

Would mean MMA would be completely removed from the County...quite a change in 2 short years...

[CPF363]

Would Irving be interested in purchasing the rest of the MM&A system?

[fogg1703]

The only winner in this disaster was the lawyers. Imagine if they just kept the original agreement in place and let CN pay MMA yearly for the right to switch Fraser how much money in legal fees MMA could have saved (as well as Fraser). What a shame. I can't see MNR being any different, but hopefully a fresh start for all involved up there will keep the mill viable.

[KSmitty]

Would Irving be interested in purchasing the rest of the MM&A system?

I don't think its for sale. Millinocket has an new operator and a business plan that seems solid. A large portion of that plan is Searsport and the ability to ship paper and Bio Coal to Europe after a less than 100 mile run on the rails. MM&A also seems to be succeeding to some degree in PQ and VT. Or at least that was my impression based on them hiring an aggressive new sales manager for the VT/PQ region, though I don't know if the service can back that up.

I think we'll see a leaner but much healthier MM&A emerge from this, especially if Millinocket paper (currently loading at 5 cars/day) and BioCoal (hoping to have the capacity to produce 1 Million Tons annually) take off. That would be big business!

[Cowford]

"MM&A also seems to be succeeding to some degree in PQ and VT... based on them hiring an aggressive new sales manager for the VT/PQ region"

Are you using the terms "succeeding" and "aggressive" based on his wins thusfar?

[KSmitty]

Are you using the terms "succeeding" and "aggressive" based on his wins thusfar?

I was basing them more off reports that I had seen after he was hired but before he started and early in his tenure. That would be why I said "though I don't know if the service can back that up." Its easy to get a customer, hard to keep one...

BTW, there was a post when Mr. Journet was hired on, this is part of the backing behind my remarks. Link to the post can be found http://www.railroad.net/forums/viewtopi ... er#p819804 <----There.

[rootsblown]

The only winner in this disaster was the lawyers. Imagine if they just kept the original agreement in place and let CN pay MMA yearly for the right to switch Fraser how much money in legal fees MMA could have saved (as well as Fraser). What a shame. I can't see MNR being any different, but hopefully a fresh start for all involved up there will keep the mill viable.

I agree , But my best guess is that when things went sour up north and negotiations were not going to happen do to an enlarged ego [MMA's] on some one's behalf, then it didn't matter how much it was going to cost them through legal fees. If MMA was not going to haul their freight then they would try to be the big bully by doing this. It seems like it was just to prove a very childish point . Anyways, the owner of MMA is probably just going to sell off the railroad one piece at a time.

[fogg1703]

The real question is had MMA and Twin Rivers not had their falling out, would MMA kept any traffic for their own lines, or just maintained the switch and short trip across the bridge to CN? Would this have been enought to keep the Ashland branch under the MMA flag and allow the Presque Isle lines to be spun off at Squa Pan to a shortline? We will never know.

[rootsblown]

Has MMA delayed the finalization of the sale of tracks into Twin Rivers to Irving for strategory reasons or what?? Maybe there disgusted because MNR is rolling 500 plus car trains a week over there old abandoned rail.

[fogg1703]

"Maybe there disgusted because MNR is rolling 500 plus car trains a week over there old abandoned rail."

I'm not sure what that equates to in train starts, but I'm impressed that traffic is up that much. Is this all fiber traffic?

[rootsblown]

Something smells fishy on this deal.I Heard Irving[MNR] now needs 2 replacement engineers for certain reasons that can't be said. There is several trained employees from MMA that have applied for these positions and are probably the most qualified because of running on this track previously , but have not been contacted yet to fill these positions that are vacant and need to be filled quickly. Was there a deal between MMA and Irving to not hire anymore employees from MMA or there will be a further delay on finalizing the sale of Twin Rivers paper. to Irving? Something's up!

[CPF363]

Has MM&A completed the sale and transfer of their track to Maine Northern as of yet?

[S1f3432]

MMA is still operating Madawaska to Van Buren- saw one of their 4-axle GE's across the river in
St. Leonard, NB, on the CN main line with a string of log racks Tuesday at noon.

[Highball]

An article appeared in today's St. John N.B. newspaper, The Telegraph Journal, on the subject of the Van Buren Me. / St. Leonard N.B. Railway bridge. In brief the context was........

The Canadian Federal Government has approved the sale of the bridge to the Eastern Maine railway from the previous owner, The Montreal, Maine & Atlantic Railway. The reason the Canadian Feds were involved is the bridge is encompassed by some form of " International Bridge Act / Law " etc.

[fogg1703]

Curious how much MNR will allow CN to serve the mill? Will MNR serve it and hand off to CN across the International Bridge or will MNR allow CN to switch Twin River?