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Northern Maine Rail Line Given Final Clearance for Takeover by State

January 17, 2011 - Augusta -The final legal hurdle has been cleared for Maine to take ownership of 233 miles of rail considered to be a lifeline for northern Maine because it's used by nearly two dozen businesses in some of the state's most important industries, Sen. Susan Collins said Thursday.

The state assumes ownership with a transfer of the deed Friday, setting the stage for needed track improvements and the hiring of an independent operator to run the rail line, said Mark Latti, spokesman for the Maine Department of Transportation in Augusta.

Several rail companies have expressed interest in serving as operator, and the state is soliciting proposals through the month's end, he said.

State ownership preserves the Montreal, Maine & Atlantic Railway line used to haul lumber, paper products, logs and wood chips in Aroostook and Penobscot counties, said Collins, a Maine Republican who serves on the Appropriations subcommittee on transportation, housing, urban development and related agencies.

"As an Aroostook County native, I understand how important the continued operation of this rail line is to Maine's economy," she said. Keeping the rail line from Madawaska to Millinocket "will help prevent the loss of nearly 2,000 jobs which are dependent upon rail service."

For more than a century, the railway has carried products in and out of northern Maine. But that nearly ended when the rail line asked last year to abandon the 233-mile segment because it was losing money.

The state ultimately agreed to pay $20.1 million in cash to buy the track. The U.S. Department of Transportation chipped in $10.5 million for track upgrades.

The rail company retains the rest of its rail in Maine, Vermont and Quebec.

Last month, the federal Surface Transportation Board gave its blessing to the deal.

The final legal obstacle was removed when the Federal Railroad Administration lifted a lien on the line.

The sales agreement called for the state to pay the railroad $20.1 million, including $7 million from state reserve accounts and $7 million from a 2010 bond issue. The state also received a $10.5 million federal grant that will fund repairs.

DAVID SHARP, The Associated Press, January 14, 2011


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