Madison Paper drops Pan Am
Madison Paper Industries has stopped using Pan Am railroad to ship its products, prompting the Massachusetts-based rail company to end service to all customers along a 26-mile stretch of track running from north of Oakland to North Anson.
Russ Drechsel, the mill’s president, told the Morning Sentinel that unreliability of shipments along that line drove his company to drop the Pan Am service, saying his company counted more than nine minor derailments that caused delivery delays this year. Derailments outside of a public road crossing that do not cause significant damage or injury do not require reports to federal regulators.
Cynthia Scarano, executive vice president for Pan Am, declined to comment to the paper about why the company discontinued rail shipments, but said the decision makes operating that particular line too expensive to continue.
At its peak five years ago, Madison Paper shipped around 2,000 rail cars per year, while other customers along the line shipped around 100 or fewer.
The discontinued service is causing problems for other companies that rely on the rail transport, like Cousineau Wood Products in North Anson and ARC Enterprises, a Kingfield-based manufacturer of steel bridge beams. Leaders of both companies told the paper the alternative shipments by truck are costing more. Both are still trying to figure out the best alternative.
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