What's next for MMA?

While this is a rough estimation and doesn't factor in depreciation of govt. capital infusions, etc, it's a poignant reminder of the lost value of this property over the last 11 years. (Jump in if I'm missing any numbers here or have them wrong):

Investment
2003 property that became MMA purchased for $55 million
200? $34 million FRA loan secured for Maine track upgrades
2005? $10 million Canadian track rehab grants
Various years $7-10 million + MDOT grants

Invested in MMA system since 2003-2013, not including post-purchase private annual capital investment: $110 million plus or minus

Proceeds
2010 section sold to MDOT: $20 million
Mad-St Leonard section sold to Irving: undisclosed (call it $2 million???)
St Rosalie abandonment and sale: undisclosed (did a sale go through? $1 million or less???)
Fortress purchase of $15.85 million ($14.25 million + $1.6 million in motive power that was pulled from deal)

$110 - 23 - 15.85 = $71 million in value lost

I think the price reflects the value of the business and not the physical plant. The loss itself is of course much the same.

Could some of this value be recovered if the railroad increases business? I think so. Perhaps even a significant amount. But for now its hard to tell.

does the great northern paper 16 week shut-down also end the weekly omya calcium carbonate slurry train? ken patrick

I do not believe that Omya ships slurry to the GNP mill. And it has been a few years since the dedicated slurry train from the VTR ceased to run, PAS's much improved service eliminated the need for it.

Bangor Daily News' informative take on "What's next for MMA?"

http://bangordailynews.com/2014/01/25/b ... c-railway/" onclick="window.open(this.href);return false;

Some MMA leases have already been assumed by others, which isn't too unexpected. I'd expect a decent amount of equipment to move in the next few weeks.

Picture at Oakfield yard on the MNR about two weeks ago.

What exactly happened here? Was this equipment that had MMA reporting marks previously?

Mr. O'Keefe, it certainly appears that Bradford Industrial Rail (AAR Reporting Mark BR) flies under the radar, or at least Mr. Google's varietal of such.

The line is owned by Genesee & Wyoming, but there is scant reference to such at that operator's site.

Bradford Rail is deemed to be a rail carrier employer under RRTA/RUIA and has 3.73 miles of trackage located within Bradford, PA:

http://www.rrb.gov/pdf/bcd/bcd94-02.pdf" onclick="window.open(this.href);return false;

All told, Mr. CN9634's thought that other parties, either through assumption of leases or outright purchase, will be moving on MMA equipment, seems to be an 'operative'. However, I would think that the only bidder for the reportedly leased MMA locomotives should be an outfit such as Naporano Iron (scrap dealers), as some of those units, notably those liveried in Grey with Red striping, were leased to the BN and ran by my house during the 1980's.

Finally, if it is the intent of Fortress Investment Group to operate the MMA property as a going concern, all stakeholders should hope that there is enough building materials as photographed by Mr. CN originating on line 'to make a go of it', for there is no assurance that MMA will again handle overhead (bridge) crude oil in the future.

With the discussion of CN being effected by the MM&A sale,
CN had another hiccup in NB. Propane car involved.

"New Brunswick Derailment, third in three weeks"
http://www.huffingtonpost.ca/2014/01/27 ... 71778.html" onclick="window.open(this.href);return false;

Mr. H, lest we forget (from same newssource):

http://www.huffingtonpost.ca/2014/01/25 ... 64774.html" onclick="window.open(this.href);return false;

Thanks for the followup on the BR reporting marks! Almost sounds as if these might have been acquired for use on the SLR (a G&W property).

gokeefe wrote:Thanks for the followup on the BR reporting marks! Almost sounds as if these might have been acquired for use on the SLR (a G&W property).

More likely a lease co bought rights to use the BR reporting marks.

Sometimes reporting marks are who has agreed to maintain the cars, but in this car I don't believe that is so. However, they are still on use in Northern Maine on the MNR.

Some of the units on the MMA are already meeting the torch at Derby. A few of the C30-7s and the C39-8 that never ran. I imagine they are cleaning house before the big switch in March.

CN,
Any idea which units are being torched at the Derby shops? I guess those units were not included in the sale and are not otherwise marketable. Thanks for any details.
Cheers,
Fritz

Could someone advise daily/weekly volume moving on CN (a) between Moncton and Saint John and (b) Moncton and, say, Edmundston?