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July 7, 2008

Maine railroad trims service, cuts staff

The Montreal, Maine & Atlantic Railway, a Bangor-based freight railroad that operates roughly 500 miles of track in Maine from Fort Kent to Searsport, said last week that it has trimmed its service and number of employees because of the current economy.

Robert Grindrod, MMA's president, said in a press release that a downturn in paper, lumber and other forest products shipments, which generate roughly 60% of the railroad's volume, along with extraordinary snow removal and spring flooding expenses, forced the company to trim its service on its main line between Millinocket and Montreal from six to five days a week, and temporarily lay off 33 employees. The potential closure of Katahdin Paper Co.'s mill in Millinocket, which generates roughly 12% of the railroad's shipments, also contributed to the company's decision

MMA serves approximately 300 customers in Maine, Vermont, Quebec and New Brunswick.

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