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July 29, 2010

State, MM&A work on rail deal

By The Mainebiz News Staff

A week after offering to buy 233 miles of northern Maine rail lines for $18.1 million, state officials are now working with Montreal, Maine & Atlantic Railway to agree on a final price.

The Maine Department of Transportation argues the tracks and other equipment are worth $18.1 million, while the railway believes they're worth as much as $26.2 million if sold as a whole, according to the Bangor Daily News. Should state and MM&A officials fail to reach an agreement on the price, the federal Surface Transportation Board will decide on an offer if it approves MM&A's request to abandon the lines. A deadline for a decision has not been specified.

The railway in February announced plans to abandon the rail lines, citing a lack of profitability. Voters in June approved a bond package that includes $7 million to help purchase the rail lines.

For more on the issue, read "MM&A's rail dilemma."

Go to the article from the Bangor Daily News >>

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