Tuesday, October 27, 2009

Maine Railway Shut Down

A Maine railway has plans to shut down a large swath of track in the state and that has some industrial firms in this province worried. Both Fraser Papers and J.D. Irving are among the larger customers of the Montreal, Maine and Atlantic Railway. The line says it is losing millions of dollars on its service between the Maine communities of Madawaska and Millinocket.


The railway is proposing to sell or abandon the 387-kilometre stretch of track. Fraser Papers C-E-O Peter Gordon says the route loss would mean significant added costs for the company, which is undergoing restructuring. Since the railway is the only one to run north and south through Maine, Fraser Papers would likely have to ship most of its products by C-N Rail, which heads west to Montreal before sending products south to key markets.