J.D. Irving subsidiary buys rail line
Eastern Maine Railway Co., a subsidiary of New Brunswick-based J.D. Irving Ltd., has closed a deal to purchase 28 miles of rail line in Aroostook County from the Montreal, Maine and Atlantic Railway for an undisclosed price.
The line connects Madawaska and Van Buren, which Wayne Power, vice president of J.D. Irving's transportation and logistics division, told the Fiddlehead Focus allows the company to serve forest product manufacturers on both sides of the border.
The paper reported the deal closed Monday.
In 2011, MM&A President and CEO Robert Grindrod told the Bangor Daily News that declining traffic from mills in the area spurred his company's decision to sell the rail lines. This followed the state's purchase of 233 miles of northern Maine freight railroad lines from MM&A in 2010, which were then turned over to Eastern Maine Railway Co. in 2011.
The announcement of the sale comes right on the heels of two New York-based investment firms taking a controlling interest in Twin Rivers Paper Co., which uses that rail line to ship paper from its Madawaska mill.
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