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Maine business agrees to subsidize rail service
And the apparent moral to this story is that blackmail as a business strategy works. Maybe the bean company should just buy the rail line and then they could be more aggressive or creative on finding additional traffic for it, rather than looking for an excuse to abandon and sell for scrap.
Blackmail is a little harsh, I think. Desperation might better serve the situation. But, it does go to show for all to see that railroads aren’t just Lionel tracks under the Christmas tree and a part of Grandpa’s nostalgic repertoire. Railroad means business to a community and to mark it up as passé` is not in the best interests of business and local economies. What should be the lesson here to the St. L & A and the communities en route is that new businesses and industry can and must be cultivated for the future growth and stability of their communities.
I’m sure that within twenty five miles there could be some type of business that could use the railroad. I’m with Mr. Sommers, that new businesses can be sought after if the rr needs and or wants revenue. Its time to show the community what services the rr can provide verses trucking. Sometimes you have to get off your butt and sell yourself, not just give up!!
Joe, it also take the communities to pitch in and want new business. Investment businesses have to want to be in the business they are in and not just for the return on investment; they have to go out and get the business. Likewise, communities have to want retable’s and economic development and be willing to work with the railroad companies as well as the businesses being sought.
About 60% of the distance is parallel to Pan Am’s track, so they would only need to save the 10 miles, Yarmouth-Deering
When I was a kid growing up in New England, there was a lot of joking about B&M beans making enough gas to power the B&M Railroad.
Dennis: Or…the company could build a new factory anywhere in the country and the taxpayer could shoulder the burden of providing a transportation conduit.
Since this industry is supporting rail maybe we should support them by buying their product, let rail enthusiasts and Trains subscribers buy B&M baked beans!
How is a separate subsidy different than the railroad charging enough to make the service profitable? Maybe the max that the STB allows them to charge is based on operating profit and doesn’t factor in maintenance of the line. Also, railroads typically have to pay property taxes on their track while the rubber tired competition uses public right of way at less than cost. If the property tax burden were removed, more rail lines would be viable.
Well said, Mr. Lowell.
The B&M plant got a segment on Modern Marvels’ show about beans. They still make their beans the same way as when they started, way back when. It is a good product, and it would be a shame to see them shutter the business if the rails were pulled up.
they need to either give the railroad something to keep work on the line active or they could buy a exx Maine Montreal and Atlantic railway b40-2 and make there own railway and re-build the track to rigby yard I worked on the Bangor and Aroostook railway for 45 years.
A million pounds is 500 tons or 5 carloads. Lets say 10 million pounds a year. Is 50 carloads a year enough business for 25 miles of railroad.
I would say let the company buy line. Maybe they will start shipping as well as receiving.
The line in question here is now owned by the state and therefore there is no property tax burden. It would certainly not make sense to buy a locomotive and operate the line themselves. That would be a sinkhole for money. Better to pay the money and let St. L & A operate the line. Less headaches.