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March 6, 2008

Pols target Maine's largest railroad

Lawmakers are considering a forced takeover of Maine's largest railroad, alleging it has not improved its service to manufacturing customers in the state, according to the Portland Press Herald.

The state has no jurisdiction over the railroad, but lawmakers believe they could use an obscure federal statute to force North Billerica, Mass.-based Pan Am Railways, formerly Guilford Rail Systems, to sell the company's rail lines in Maine to the state, which would find another company to operate the rail system, the paper said.

Lawmakers claim the railroad, which offers the only rail connection between Maine and southern New England, does not offer timely service to its manufacturing customers, including several paper mills in the state and Sprague Energy terminals in Portland and South Portland, according to the paper.

Pan Am Railways, owned by Timothy Mellon of Pittsburgh, denies the claims of substandard service.

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