State makes offer on MM&A rail
The Maine Department of Transportation this week made a formal offer of $18 million to purchase the 233 miles of rail line Montreal Maine & Atlantic Railway is seeking to abandon in Aroostook and Penobscot counties, well below the railroad's asking price.
The state's offer, however, is conditional since the federal Surface Transportation Board has not approved MM&A's request to abandon those tracks. The state filed the "offer of financial assistance," as it's formally known, "to protect the right of the state to pursue a purchase of the abandonment lines in the event the board grants MMA the abandonment authority it has requested," according to the filing.
MM&A in February said it would seek to abandon the 233 miles of rail lines because of a lack of profitability. The state, shippers and other interested parties opposed the abandonment, claiming it would cost the state 1,700 jobs, and began seeking a way to save the lines. In June, voters approved a bond package that would provide $7 million to purchase the rail lines.
The state and MM&A are still in negotiations. Bob Grindrod, MM&A's CEO, told Mainebiz in May that the value of the land and tracks is closer to $27 million.
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