Maine news, sports, weather | Kennebec Journal, Augusta, Maine

GOP leader questions railroad purchase plan

BY SUSAN M. COVER Staff Writer

AUGUSTA -- House Minority Leader Josh Tardy, R-Newport, raised questions Tuesday about a Democratic proposal to borrow money to buy Aroostook County railroad tracks -- a $17 million piece of the proposed bond package.

In particular, Tardy wondered about the wisdom of the state buying the tracks, which are not profitable.

"Even if we had capacity (to borrow money), I am very skeptical that the Aroostook rail bond is a good idea," he said. "I think there are alternatives that should be explored exhaustively."

The Montreal, Maine & Atlantic Railway has announced plans to abandon 233 miles of track from Millinocket to Madawaska. More than 20 companies -- including Dead River Co., Columbia Forest Products and Fraser Timber -- use the track to ship goods, according to the railroad.

Maine Department of Transportation Commissioner David Cole said the state has an interest in preserving the jobs that could be affected if the railroad rips up the line and sells the tracks for scrap.

"People work for these 22 shippers and we're preserving jobs and competitiveness," he said. "The longer this drags out, the more uncertainty it causes for the shippers."

Railway President Robert Grindrod has been working State House halls for the last couple of weeks to convince lawmakers to support the bond.

"I'm down here trying to encourage an alternative solution, because I would rather see the track become part of a system owned by the state than see it torn up," he said. "If the state can't get its act together and come up with a plan, we'll start tearing it up."

He said the company could earn $20 million to $25 million by selling the rails as scrap metal.

Cole said the state tried -- and failed -- to get federal funding to purchase the tracks. He said if the state invests money, the federal government will be more likely to help pay the costs of repairing the tracks.

Tardy said the state has not yet inspected the rail lines, yet lawmakers are being asked to buy them.

"It's a very poorly planned, poorly articulated proposal," he said. "I can't see us responsibly saying to the taxpayers, spending $17 million, and going into the business of running the railroad knowing you've got $19 million of deferred maintenance on that rail."

Susan Cover -- 620-7015

scover@centralmaine.com