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August 5, 2013

Layoffs hit rail towns in wake of tragedy

The towns of Brownville and Milo are the hardest hit by layoffs at the Hermon-based Montreal, Maine and Atlantic Railway, as the towns hold a junction and a repair yard that are both critical to the rail line’s operation.  

The Kennebec Journal reported that over two-thirds of the Maine workers laid off by MMA live near the two central Maine towns, where public officials and current and former workers are worried over the railroad’s future after a tragic oil train crash that killed 47 people in Lac-Mégantic, Quebec, and has disrupted service along that line.

Brownville Town Manager Matthew Pineo told the paper that the railroad jobs — paying between $2,500 and $6,000 a month — are some of the highest-paying in the county, and he expects the layoffs and potential closure of the rail line could do broader economic harm.

Steve Johnson, owner of the General Store & More in Brownville, told the paper that revenue has been down 8% to 20% since the train accident and subsequent layoffs.

Last week, MMA Chairman Ed Burkhardt said the railroad could face closure following the crash -- and industry experts see a sale or bankruptcy as the most likely next step for the company. Last week, state officials began talking to four other freight companies in the state about taking over the Montreal, Maine and Atlantic Railway should the company file for bankruptcy.

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