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The “why”, “when” and the “how”…

                 Alain Ouellette, NMDC
Industrial Rail in Aroostook County
•1891-1995: Bangor & Aroostook Railroad: (Potatoes &
      Wood Products)
•1995-2002: Iron Road Railways (Paper & Wood Products)
•2003-2011: Montreal Maine & Atlantic
Some Facts
• Abandonment process August 14th 2009

•233 official miles, up to ~280 including
spurs

•80%-90% of the volume shipped is Forest
products in various forms

•Note: County had already lost +160 miles
between BAR & AVRR (ATV Trails)
Affected
   businesses:
 Fraser Paper (Twin Rivers)
 Fraser Timber
 Irving Woodlands LLC
                              PIIC
 Portage Wood Products
                              FRG
 McCain Foods
                              Lane Construction
 Dead River Oil
                              Moose River Lumber
 MPG
                              Maine Woods Co,
 Cavendish Agri-Services
                              One Steel
 Maine Public Service
                              Gardner Chip Plant
 Huber Engineered Woods
                              Seven Islands
 Lew Rioux
 Columbia Forest Products
 Louisiana Pacific
 Tate & Lyle
 Domtar
 Old Town Fuel & Fiber




1726 jobs threatened in “The County”
              766 direct + 960 indirect
Immediate Involvement by NMDC
Contacts initiated to assess shipper concerns

Fall-Winter 2009
•   Meetings in DC

•   State hires Railroad Industries Inc.

•   Interviews between RII and shippers
Winter/Spring 2010


-State bills worked on in Augusta

-MM&A

-Railroad Industries Inc Report released:

                 “…the line is viable, but it will need work…”

-the role of Maine’s Congressional Delegation…
Spring/Summer 2010

• MM&A officially files for the abandonment

• $18 million dollar bond to purchase the rails passes

•NMDC Shipper Meetings

•-10.5 million TIGER II application filed by MDOT
Summer-Fall-Winter 2010
• STB hearing

•Negotiations …

•Deal reached for 20.1 million, 18 million bond, 1 million private + loan “clawback”

•STB abandonment is dropped

•Filing of $10.5 million TIGER II grant successful

-Deal signed January 2011 under new State administration
2011 and to date…
•Request for Proposals for Operator

•TIGER funds are obligated

•Respondents

                 Rail America
                 Eastern Maine Railways
                 Patriot Rail
                 Myles Group
                 Pan Am

•Final selection was EMR

•Average speed from 15-35mph

•100 cpw to 300cpw…
   “We are NOT going to lose this rail!”
                                        Ryan Bushey, Louisiana Pacific

   “Engage our shippers and keep them involved throughout
    the process”
                               Robert Clark, Executive Director, NMDC

   “Begin your background work early…”
                                      Dave Cole, Commissioner MDOT

   Don’t let the bastards get you down…”
                              Nate Moulton, MDOT Rail Program

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Ouellette rpo2012

  • 1. The “why”, “when” and the “how”… Alain Ouellette, NMDC
  • 2.
  • 3. Industrial Rail in Aroostook County •1891-1995: Bangor & Aroostook Railroad: (Potatoes & Wood Products) •1995-2002: Iron Road Railways (Paper & Wood Products) •2003-2011: Montreal Maine & Atlantic
  • 4. Some Facts • Abandonment process August 14th 2009 •233 official miles, up to ~280 including spurs •80%-90% of the volume shipped is Forest products in various forms •Note: County had already lost +160 miles between BAR & AVRR (ATV Trails)
  • 5. Affected businesses: Fraser Paper (Twin Rivers) Fraser Timber Irving Woodlands LLC PIIC Portage Wood Products FRG McCain Foods Lane Construction Dead River Oil Moose River Lumber MPG Maine Woods Co, Cavendish Agri-Services One Steel Maine Public Service Gardner Chip Plant Huber Engineered Woods Seven Islands Lew Rioux Columbia Forest Products Louisiana Pacific Tate & Lyle Domtar Old Town Fuel & Fiber 1726 jobs threatened in “The County” 766 direct + 960 indirect
  • 6. Immediate Involvement by NMDC Contacts initiated to assess shipper concerns Fall-Winter 2009 • Meetings in DC • State hires Railroad Industries Inc. • Interviews between RII and shippers
  • 7. Winter/Spring 2010 -State bills worked on in Augusta -MM&A -Railroad Industries Inc Report released: “…the line is viable, but it will need work…” -the role of Maine’s Congressional Delegation…
  • 8. Spring/Summer 2010 • MM&A officially files for the abandonment • $18 million dollar bond to purchase the rails passes •NMDC Shipper Meetings •-10.5 million TIGER II application filed by MDOT
  • 9. Summer-Fall-Winter 2010 • STB hearing •Negotiations … •Deal reached for 20.1 million, 18 million bond, 1 million private + loan “clawback” •STB abandonment is dropped •Filing of $10.5 million TIGER II grant successful -Deal signed January 2011 under new State administration
  • 10. 2011 and to date… •Request for Proposals for Operator •TIGER funds are obligated •Respondents Rail America Eastern Maine Railways Patriot Rail Myles Group Pan Am •Final selection was EMR •Average speed from 15-35mph •100 cpw to 300cpw…
  • 11. “We are NOT going to lose this rail!” Ryan Bushey, Louisiana Pacific  “Engage our shippers and keep them involved throughout the process” Robert Clark, Executive Director, NMDC  “Begin your background work early…” Dave Cole, Commissioner MDOT  Don’t let the bastards get you down…” Nate Moulton, MDOT Rail Program