The state has reached an agreement to buy 233 miles of track in Aroostook and Penobscot counties from the Montreal, Maine and Atlantic Railway, Gov. John Baldacci’s office said Tuesday.
The owner of the railroad had begun the process of abandoning the line, which would have cut off rail service to northern Maine and hurt important industries throughout the state. More than 25 businesses in the area rely on the rail link, and an estimated 750 to 1,000 jobs could have been threatened if the tracks had been abandoned.
The agreement concludes more than a year of negotiations between the state and the railway. It calls for a purchase price of $20.1 million in cash for the rail line from Millinocket to Madawaska and branch lines to Caribou, Presque Isle, Easton, Houlton and Limestone.
The state will receive title to the line, free of any liens, along with rights to move freight over certain lines that Montreal, Maine and Atlantic is keeping. The rights will allow a new operator to connect with the Canadian National line at Van Buren and the Eastern Maine Railway in Brownville Junction.
Montreal, Maine and Atlantic will provide any needed infrastructure and track at the interchange locations for the new operator.
Funding for the deal includes $7 million from a bond approved in June, $4 million from a November 2009 bond that is being repurposed, $7 million from state reserve accounts, $1.1 million from rail balances from canceled projects, and $1 million from a shipper on the line.
“This agreement will ensure that northern Maine continues to have access to rail service,” Baldacci said. “Improved rail connections are critical to Maine’s economy, and this line particularly will help to protect thousands of jobs and major employers in Aroostook and Penobscot counties.”
Maine was notified Friday that the state will receive $10.5 million in federal money for track improvements that will allow trains to move faster and provide more reliable service.
As the sale is being finalized, Maine’s Department of Transportation will issue a request for proposals to solicit a private operator to provide service over the lines being purchased.
Staff Writer Tux Turkel can be contacted at 791-6462 or at: tturkel@pressherald.com
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