Maine reaches deal to buy imperiled rail lines
October 20, 2010
|AUGUSTA, Maine — The State of Maine has reached a deal to buy 233 miles of track from Montreal, Maine & Atlantic Railway to prevent their abandonment, Business Week has reported. The state has been fighting for more than a year to preserve rail service north of Millinocket, Maine, and the agreement apparently reaches that objective. |
“Lifting this cloud of uncertainty not only helps stabilize these rail-dependent industries, but with improved services, lays the groundwork for future expansion and new business opportunities,” said David Cole, the state’s transportation commissioner. The line mostly serves lumber and paper-industry customers.
Under the agreement, the state will pay MM&A $20.1 million for the rail line. It’s received a $10.5 million federal grant to help fund repairs and maintenance on the line.
MM&A will continue operating the line until the state selects a new operator. The deal is to be completed within 90 days.
News Wire Reference Links
Search News Wire Articles