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R A ILS & P ORTSoperating railroads + ports, intermodal facilities, and government environment

www.atlanticnortheast.com Formal issue 14#03A 24 March 2014

*Article unchanged from e-bulletin.++ Blue type in article: changes from e-bulletin.Blue header & table of contents: new article

REGIONALCMQR-MMA asset sale: No closing 14 March.CMQR - TC: Application 10 March.++CMQR – CTA: Submission this week.++CMQR-MMA: No worries on closing.*Mountain Division: Rail officials look at a plan to move freight between Portland and St.Johnsbury.*

NEW YORKNYA: Brookhaven Rail Terminal brouhaha.Albany: County executive issues moratorium on Global crude terminal work.++Albany: Pilgrim proposes crude pipeline to New Jersey, and reverse flow of refined products.*

QUÉBEC CMQR: Lac Megantic mayor admits oil needs to go through Lac Megantic. ++MMA: Any traffic for Maine?MMA: Expected criminal charges.

CONNECTICUT[No report.]

MAINEPortland-Pan Am: Details on creation of rail container terminal.* Maps.NBSR: Woodland Pulp will set up a tissue mill, but not expand rail, and shrink pulp exports.*

MASSACHUSETTS Pan Am: Three Lawrence customers.

MC: Switch for Maritime International going in.*NEW HAMPSHIRE

MBRX: Negotiations on lease with NHDOT nearly done.* Leishman calls Clement to account.*Pan Am: Sea-3 hearing details on track upgrades.*Pan Am: More on Sea-3 terminal and track.++

RHODE ISLANDPW: Osram Sylvania closes, but less than 50 cars.

VERMONTVAOT: Governor's budget details.VRS-CMQR: Wulfson backs, wants ME traffic back.VRS: Wulfson okaynot moving Rutland Yard. Map.

MARITIMESCBNS: Updates on Michelin and Nustar.*NBSR: Irving Pulp and Paper invests $500 million.*

RAIL SHIPPERS/RECEIVERSA cross-reference to companies mentioned here.

PEOPLE, POSITIONS, EVENTSBill Dewitt to Denver.

Graphics?I'm enjoying creating and publishing all the graphics. Of course the issue gets longer. Any objections – let me know.

Expo!See you Tuesday. - Chop Hardenbergh Next formal issue 7 April

Common abbreviations: BCLR - Bay Colony RR, BML - Belfast & Moosehead Lake RR, CBNS - Cape Breton and Central Nova Scotia Ry, CCCR - Cape Cod Central RR, CCRR - Claremont Concord RR, CMAQ - congestion-mitigation or air quality (money from the US federal government for these purposes), CN - Canadian National Ry, CNZR - Central New England RR, ConnDOT - Connecticut Department of Transportation, CP - Canadian Pacific Ry, CSO - Connecticut Southern RR, CSRX - Conway Scenic RR, CSXT - CSX Transportation (railroad), EMRY - see NB&M, FHWA - Federal Highway Admin., FRA - Federal Rail Admin., FRTC - Fore River Transportation Co., FTA - Federal Transit Admin.,GU - Grafton & Upton RR, GWI - Genesee & Wyoming Inc, HRRC - Housatonic RR, MassDOT - Massachusetts Department of Transportation, MBCR - Mass. Bay Commuter RR, MBRX - Milford-Bennington RR, MBTA - Mass. Bay Transportation Authority, MC - Massachusetts Coastal RR, MCER - Mass. Central RR, MDOT - Maine Department of Transportation, MERR - Maine Eastern RR, MMA - Montréal, Maine and Atlantic Ry, MNRY - see NB&M, MPO - Metropolitan Planning Organization, MTQ - Québec Ministry of Transport, NAUG - Naugatuck RR, NBDOT - New Brunswick Department of Transportation, NB&M - New Brunswick & Maine Railways (dba name) consisting of MNR Maine Northern Railway, EMRY Eastern Maine Railway, and NBSR New Brunswick Southern Railway, NBSR – see NB&M, NECR - New England Central RR, NEGS - New England Southern RR, NHCR - New Hampshire Central RR, NHDOT - NH Department of Transportation, NHN - New Hampshire Northcoast RR, NNEPRA - Northern New England Passenger Rail Authority, NS - Norfolk Southern Ry, NSDOT - Nova Scotia Department of Transportation, NYA – New York & Atlantic Rwy, NYNJ - New York New Jersey Railroad (PANYNJ subsidiary, former Cross-Harbor), PAR - Pan Am Railways - parent of Maine Central RR, Portland Terminal RR, Boston & Maine, all leased by ST - Springfield Terminal Ry, PANYNJ - Port Authority of New York and New Jersey, PAS - Pan Am Southern Railway, joint venture of Pan Am and Norfolk Southern, PVRR - Pioneer Valley RR, PW - Providence & Worcester RR, QCR - Quebec Central Ry, RIDOT - Rhode Island Department of Transportation, Seaview-Seaview Transportation Company, SLQ - St.Lawrence & Atlantic Ry (Québec), SLR - St.Lawrence&Atlantic RR, SNC- Saratoga & North Creek RR, ST - see PAR, TIRR - Turner’s Island LLC, TEU - twenty-foot equivalent unit (measure of container traffic, equal to a 20x8x8 foot box), VAOT- Vermont Agency of Transportation, VRS-Vermont Rail System (Green Mt. RR Company GMRC + Vermont Ry VTR + Clarendon&Pittsford RR CLP + Washington County RR WACR), WHRC - Windsor and Hantsport Ry.

Helping to move rail and port traffic through New York, New England, the Maritimes,& eastern Québec. A weekly trade newsletter.

FROM THE PUBLISHER

2 ATLANTIC NORTHEAST RAILS & PORTS – weekly trade newsletter 14#03A 24 March 2014

REGIONALMMA-CMQR: 14 MARCH D-DAY ++

14 March. NO CLOSING. CMQR DID NOT BUY THE MMA ASSETS ON THIS DAY. According to the asset purchase agreement signed by Fortress, and approved by the US Bankruptcy Court and its Quebec counterpart, the parties in both Canada and the United States were to close the deal by 14 March.

The Purchaser was required to immediately seek permits from the STB and the CTA.

STB ACTIONOn 12 March, the Surface Transportation Board issued a decision waiving the 60-day period for notification of railroad workers [see 14#02B].

Accordingly, we are granting CMQR’s petition for waiver of the 60-day notice period. By granting this waiver request, the earliest date that this transaction may be consummated will be March 16, 2014, rather than April 15, 2014. {STB website, decisions page, Finance Docket No. 3506}

CTA – NO ACTIONOn 14 March, Canadian Transportation Authority's Nina Frid said the agency had not received the application for a Certificate of Fitness as required by the Asset Purchase Agreement.

Moreover, the insurance required for MMA to continue to operate expires at the end of March, and without the insurance, the MMA Certificate of Fitness, which expires at the same time, cannot be renewed.

ConclusionThe parties were permitted by the agreement language to extend the closing date [they did]. Editor

RELEVANT LANGUAGE IN US COURT ORDER30. Time is of the Essence. Time is of the essence in closing the Sale. The Court hereby determines that it is in the best interests of the Debtor’s estate, and in the public interest, to close the Sale as soon as practicable in accordance with the Agreement. The Court therefore respectfully requests that the Surface Transportation Board and the relevant Canadian regulatory authorities expedite their respective review processes, and render final decisions as soon as practicable but in any event no later than March 14, 2014 (in order to enable closing of the transactions contemplated by the Agreement on or before March 31, 2014).

The Canadian court in its order on 23 January used nearly identical language.

RELEVANT TEXT LANGUAGE OF DRAFT ASSET PURCHASE AGREEMENTAs filed with the Court by the Bankruptcy Trustee on 22 January, it reads:

2.6 Closing. The closing (the “Closing”) shall occur no later than thirty (30) days following the later to occur of

(a) the date upon which the Sale Order and the Vesting Order approving the sale of the Assets to Purchaser in accordance with this Agreement shall have become Final Orders, and

(b) the receipt of any necessary Governmental Permits necessary to authorize the transactions contemplated by the Agreement,

or on such other date as may be mutually agreed by the parties,

but in any event (subject to Sections 10.1(b)(vi) and 10.1(c)(iii)) not later than March 14, 2014. The Closing shall take place at the offices of Bernstein, Shur, Sawyer & Nelson, P.A., 100 Middle Street, Portland, Maine, or such other place as Sellers and Purchaser shall agree, and shall be effective as of 11:59 p.m. Portland, Maine time on the date of Closing (the “Closing Date).

ATLANTIC NORTHEAST RAILS & PORTS – weekly trade newsletter 14#03A 24 March 2014 3

8.1 Conditions to Sellers’ Obligation to Close. Sellers’ obligation to consummate the transactions contemplated in this Agreement is subject, at the option of Sellers, to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions:

8.1(f) Governmental Permits . All Governmental Permits, authorizations and/or exemptions (including, without limitation, any required United States Surface Transportation Board and Canadian Transportation Agency approvals, authorizations and/or exemptions) required to be obtained in connection with the consummation of the transactions contemplated by this Agreement shall have been obtained and be in full force and effect.

8.2 Conditions to Purchaser’s Obligation to Close. Purchaser’s obligation to consummate the transactions contemplated in this Agreement is subject, at the option of Purchaser, to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions:

8.2 (h) Governmental Permits . All Governmental Permits, authorizations and/or exemptions (including, without limitation, any required United States Surface Transportation Board, Transport Canada and Canadian Transportation Agency approvals, authorizations and/or exemptions) required to be obtained in connection with the consummation of the transactions contemplated by this Agreement and the operation of the MMA Lines and MMA Canada Lines by Purchaser from and after Closing

shall have been obtained in form and substance satisfactory to Purchaser and be in full force and effect, including that Purchaser shall have obtained a Canadian Transportation Agency decision that indicates that the Agency will issue a Certificate of Fitness to Purchaser authorizing it to operate a railway in Canada.

Such Governmental Permits shall not be subject to any condition (other than statutory labor protective conditions) that, in Purchaser’s sole judgment, would adversely affect the operation of the MMA Lines and MMA Canada Lines by Purchaser from and after Closing.

8.2 (j) Contiguous Line of Railroad. Purchaser shall have determined in its sole judgment that the Assets conveyed and transferred to it at Closing, and the Governmental Permits, are sufficient to enable Purchaser to operate uninterrupted through train service over the entirety of the MMA Lines and the MMA Canada Lines from and after the Closing Date. Purchaser shall have obtained written assurance, in form and substance satisfactory to Purchaser in its sole judgment, that the temporary rail line in and through the town of Lac Megantic, Quebec (including the segment that is subject to the lease referred to in Section 5.1(a)(ii)(4) of this Agreement) will, within two (2) years of the Closing Date, become a permanent railroad line or be replaced by a permanent railroad line (or lines) in and through the town of Lac Megantic to be constructed on the right-of- way upon which MMA Canada’s rail lines were located prior to July 5, 2013 or via such alternate route as MMA Canada, Purchaser and any applicable Governmental Authority may agree in writing, in each case on terms and conditions reasonably satisfactory to Purchaser.

Termination by Purchaser[The Agreement may be terminated]

[If no closing by 14 March] 10.1(b)(vi) By Purchaser, if the Closing does not occur on or before March 14, 2014 (or on such other extended date upon which the parties mutually agree in writing); provided, however, that if all of the conditions to the Sellers’ and Purchaser’s respective obligations to close have been satisfied with the sole exception of the issuance of any required United States Surface Transportation Board and Canadian Transportation Agency approvals, authorizations and/or exemptions required to be obtained in connection with the consummation of the transactions contemplated by this Agreement pursuant to Sections 8.1(f) and 8.2(h) hereof, then the foregoing March 14, 2014 date shall be deemed to have been automatically extended to May 15, 2014;

Termination by Seller[The Agreement may be terminated]

10.1 (c) (ii) By Sellers, in the event of a material violation or material breach by Purchaser of its agreements, covenants, representations or warranties contained in this Agreement; provided that such violation or breach shall not have been waived or cured within ten (10) days following receipt by Purchaser of written notice of such breach from Sellers, and provided further that Purchaser is not then in material breach of the Agreement;or

[If no closing by 14 March] 10.1 (c) (iii) By Sellers, if the Closing does not occur on or before March 14, 2014 (or on such


other extended date upon which the parties mutually agree); provided, however, that if all of the conditions to the Sellers’ and Purchaser’s respective obligations to close have been satisfied with the sole exception of the issuance of any required United States Surface Transportation Board and Canadian Transportation Agency approvals, authorizations and/or exemptions required to be obtained in connection with the consummation of the transactions contemplated by this Agreement pursuant to Sections 8.1(f) and 8.2(h) hereof, then the foregoing March 14, 2014 date shall be deemed to have been automatically extended to May 15, 2014.

CMQR - CTA: DEAL DELAYED15 March, Portland. CMQR IS REPORTEDLY DISCUSSING REQUIREMENTS FOR A CERTIFICATE OF FITNESS with the Canadian Transportation Agency (CTA), according to Bob Keach, US trustee for the bankruptcy estate of the MMA. '[A]s per discussions with CMQR counsel in the US and Canada' CMQR is conducting 'routine discussions regarding insurance levels. The application is usually not filed until all of those issues are agreed to, and the CTA is in the midst—we are told—of a review of those issues for all railroads at the moment, as might be expected. I am not concerned and neither is CMQR.'

Delay in closingKeach also reported: 'Closing will be delayed slightly while the CTA and Transport Canada approvals are finalized. Still expect to close within the next 30 days, but that will depend on the promptness of the regulatory response.' {e-mails to ANR&P}

CTA differsNina Frid at CTA wrote on 17 March: 'There is are no preliminary discussions....[W]e don't have before the Agency the CMQR application at this time...' {e-mail to ANR&P}


Transport Canada approval[As later reported, CMQR submitted paperwork to Transport Canada 10 March. Sixty days need to pass before the railway can begin operation. See below.]

20 March, Ottawa. CMQR HAS NOT YET SUBMITTED AN APPLICATION FOR A FEDERAL CERTIFICATE OF FITNESS, wrote CTA director of communications Alexandre Robertson this day. [Keach believed the filing would occur the week of 24 March – see below.]

Extension of insurance to 1 April'In Decision No. 29-R-2014, the Agency amended the date of effect of the suspension of MMA/MMAC’s Certificate of Fitness to April 1, 2014.

'Based on the information submitted, the Agency found that MMA/MMAC had demonstrated that there was adequate third party liability insurance coverage, including self-insurance, for the proposed railway operations for a further 60 days.

'During its review of proposed operations for the extra 60 days, the Agency found that MMA/MMAC continued to have a self-insured retention amount of $250,000 in its liability insurance policy and continued tohold $25,000,000 in third party liability insurance coverage.

'The railway forecasted shipping reduced volumes and distances of dangerous goods, when compared to pre-Lac-Mégantic derailment figures, and that it would not be moving crude oil.

'Transport Canada informed the Agency that MMA/MMAC has been subject to several inspections since July 6, 2013 and, while it had been subject to a number of notices and orders as a result, to Transport Canada's knowledge MMA/MMAC is operating in compliance with the conditions set in those notices and orders.

Filing until 1 June'In order to continue to provide services to its customers until the sale of the railway and its assets is completed, MMA/MMAC recently filed for an extension to June 1, 2014, The Agency is currently reviewing theapplication and will be issuing a decision next week.'

No preliminary discussionOn 18 March, Robertson reported 'Agency staff do not conduct preliminary discussions with applicants, despitewhat the media may be reporting.

'That said, staff can and do provide information to applicants about the requirements for a certificate of fitness application. In fact, as a matter of course, staff provide information on all topics within the Agency's jurisdiction.' {e-mails to ANR&P 18&20.Mar.14}

CMQR - TC: TC PERMIT STILL NEEDED ++18 March, Ottawa. TRANSPORT CANADA EXPLAINED WHAT STEPS CMQR IS TAKING to meet its requirements:

Q1. Are you saying that TC is not talking at all to CMQR or any representative?'[On 10 March], Central Maine & Quebec Railway submitted its safety management system (SMS) information to Transport Canada for review. The submission of the SMS information is an operational requirement under the Railway Safety Management System Regulations.'

Q2. I understood that TC had some kind of role in permitting crude oil traffic to resume through Lac Megantic. I assumed CMQR might be talking about that.'The resumption of rail traffic in Lac-Mégantic was the result of an agreement between the municipality of Lac-Mégantic, Montreal Maine & Atlantic (MMA), and the bankruptcy trustee. We understand that through this agreement, no dangerous goods would be transported through Lac-Mégantic.


'Transport Canada inspected the track and grade crossings in the area, and confirmed that rail traffic could resume safely. A Notice and Order is still in effect that requires a maximum speed of 10 mph in a number of locations and a manual protection at controlled grade crossings.

'For information regarding the agreement, please contact the municipality or MMA.'

Q3-followup. How may I see the Notice and Order? How does a railway get the Notice and Order changed?A Notice and Order restricts a rail company’s operations until specific action is put in place to correct the non compliances that risk compromising railway safety. The Notice and Order contains third party information and may require third party consultation prior to release, you are welcome to submit a formal request through ATIP.

Q3. Could you tell me what, if any, role TC has in the crude oil transport, aside from requiring that it move only in specific types of rail cars?'Transport Canada takes the safety and security of the railway and transportation of dangerous goods systems seriously and is committed to ensuring that appropriate levels of safety are maintained.

'The transportation of dangerous goods, including shipments of oil by rail, is strictly regulated under the Transportation of Dangerous Goods Act, which applies during the import, handling, offering for transport and transport of dangerous good.

'The TDG Act requires dangerous goods to be properly classified and transported in the proper means of containment manufactured to a Transport Canada-approved standard. Additional requirements include proper documentation, safety marks, reporting and training.

'The department’s role is to verify compliance through risk-based inspections. Transport Canada does not hesitate to take appropriate enforcement action in cases where cases of non-compliance are found.'

[More on Railway Safety Management System RegulationsRegulations provide:

(2) The information [about a safety management system] shall be submitted(a) in respect of a railway company that is in operation on March 31, 2001, before April 30, 2001; and(b) in any other case, at least 60 days before the railway company begins operations.

Apparently then, above 60-day requirement would appear to bar CMQR from operating until the beginning of May. Editor]

Q4. The above 60-day requirement would appear to bar CMQR from operating until the beginning of May, is that correct? Or does TC allow any acceleration of the 60 days, or a waiver of the requirement? What is the exact date of the submission?Central Maine & Quebec Railway submitted its SMS information to Transport Canada for review on March 10, 2014.

Railroad Acquisition Holdings is in the process of purchasing MMA. Transport Canada has no involvement in this transaction.

In order to begin operating in Canada, companies must possess a valid Certificate of Fitness, which is issued by the Canadian Transportation Agency. The Agency issues Certificates of Fitness to indicate that a railway is under federal jurisdiction and that it has appropriate third-party liability insurance coverage to operate in Canada. All railways holding a certificate of fitness are subject to the Railway Safety Act and all the requirements (such as regulations, rules, standards, etc.) pursuant to that Act.

Under the Railway Safety Management System Regulations, a railway company must submit its safety management system information to Transport Canada at least 60 days before it begins operations.

For information on the terms of sale, please contact the companies directly.


[The TC response, while not directly responding to the waiver question, appears to say that the 60 days must run. Note: The STB did waive its 60-day notice period. See above. Editor]

Q5. Does the Minister (TC personnel) review the SMS to be satisfied that it meets the RSMSR? If so, how may I find out when TC deems the submission adequate?Yes, Transport Canada reviews a railway company’s Safety Management System submission to ensure it meets the requirements under the Railway Safety Management System Regulations. A railway company’s Safety Management System is third party information. You should contact them directly for more information. {e-mails from Sandra Boudreau, TC senior communications adviser}

MMA-CMQR: NO WORRIES! ++20 March, Portland. KEACH REMAINS UNCONCERNED. In an e-mail, he wrote: 'I have never blamed the Canadian authorities for any delay. As I have said, there were routine discussions between the buyer and the agencies prior to submissions, and now the submission has been made to TC and the formal application to the CTA for a certificate of fitness is supposed to be made this week, per CMQR counsel. 'None of this is a surprise to me, as we have been in regular contact with CMQR and counsel. Obviously, the CTA cannot review what it does not have and no one is saying or implying that the CTA is delaying its review or the transaction.

'We are optimistic that once they have all necessary documents, they will move promptly to review the application and approve it. We remain unconcerned about the delay; as I said, this contingency was built into the asset purchase agreement.' {e-mail to ANR&P}

Insurance and financing adequate'All relevant insurance has been extended to June 1, and the current financing is sufficient to cover the anticipated delay. I do not expect any impact on operations from the delay, and we expect prompt action by the regulatory authorities,' Keach wrote on 19 March. {Whit Richardson in Portland Press Herald 20.Mar.14}

MOUNTAIN DIVISION: A VIABLE (?) PROPOSAL TO RE-OPEN*19 March, Standish. A MAINE VISIONARY DESCRIBED A PLAN TO REOPEN THE LINE BETWEEN PORTLAND AND ST.JOHNSBURY for freight and passenger, to the Route 113 Committee here. The Committee, composed of the five towns along Maine's part of the Mountain Division, meets regularly to promote economic development. As part of its purview, it has promoted re-opening the Maine part of the line for freight and possible passenger, seeking state funding [see 13#05A].

History; SLR initial contactDavid Schwanke of Norridgewock told the meeting that Robert Steele and Phil Warren, now each vice-presidents of Golden Eagle, asked him to get involved in creating more rail passenger service in Maine. While he had no experience in rail, he did handle transportation logistics for movie outfit Quinn Martin Productions. The three created Golden Eagle Railway Corporation “about a year and a half ago” and began to look at the SLR tracks to operate a pendulum passenger service between Montreal and Portland [see 13#11A].

The SLR – Schwanke mentioned Jerry Vest – was open to receiving information about the service, and has asked for more. Meanwhile, Golden Eagle looked at reviving the Mountain Division as an alternative route.

It has hired Deborah Murphy, who formerly handled passenger rail for VRS, to do the same for Golden Eagle. She will start work in April. Schwanke mentioned support from Don Provencher and Ray Burton, the New Hampshire executive councillor who died a few months ago.

Schwanke emphasized that he is looking for no public money.

Mini-editorial: Presence of serious playersThe idea of reviving Portland-Montreal passenger traffic bubbles to the surface every now and then. Ditto with


the Mountain Division freight – only to be shot down by studies showing not enough of it exists.I came with extreme skepticism to this meeting. The presence of two “old rail hands,” Dick Currier and

Roger Desrosier, who actually have operated and worked for freight railroads for decades, reduced my approach to mere “skepticism.” Schwanke has the right approach: check out the viability of the freight route with all the players, then look for freight, and finally bring passenger along.

I fervently wish him success.

The Mountain Division in three statesSchwanke explained that the Mountain Division presented the opportunity not only for passenger, but to restart a freight route, an option not available on the SLR which has its own freight. He has spoken with officials at the transportation agencies in all three states, as well as railroad officials.

Vermont. Golden Eagle would use the now moribund track between St.Johnsbury and Gilman, owned by Pan Am and leased – arguably – by the Clyde Forbes group [see below].

New Hampshire. Golden Eagle would use the state-owned line between Gilman and North Conway. The upper part is operated by NHCR; the lower part by the Conway Scenic. [See below.]

Maine. Golden Eagle would use the state-owned line between North Conway and Westbrook, and then the Pan Am-owned line from Westbrook to Portland [Pan Am serves Sappi on this line – see 14#02B Maine].

History. The Maine Central Railroad (a successor to the Portland and Ogdensburg Railway) used the line from Portland to St.Johnsbury to interchange with CP to get traffic to Montreal, and also with the Lamoille Valley Railroad and predecessors to reach St.Albans and interchange with CN.

VAOTSchwanke noted that Pan Am did want to sell five years ago. Dan Delabruere of the VAOT rail division said he would help.

The Pan Am-Forbes disagreementVRS at one point was interested in reviving the St.Johnsbury to Gilman line, when the Gilman paper mill was restarting. VAOT was willing to examine purchasing the line, but ran into the dispute. Pan Am, owner of the Maine Central which had leased the line to Forbes, argued that Forbes had violated the lease and therefore the line reverted to Pan Am. Forbes disagreed,

When the mill failed again, interest in reviving the line, and therefore in resolving the dispute between the two parties, died.

Schwanke said he planned to talk to Pan Am. He has already talked to Clyde Forbes' attorney Leonard Singer [Forbes died in 2011 – see 12#04A]. Singer is “more than happy to work with us in clearing that up.”

VRSDesrosier told the meeting, at the request of Schwanke, that he “came to find out if this is real. I've been chasing this concept for eight years.” He spent the day driving the line, looking for potential customers. “I picked out 14. You've got the academy, the airport, R&D, potential for manufacturing, and for serving existing industry.”

Nevertheless, he told Schwanke: “You are a dreamer. I will listen to and challenge your ideas.”

NHDOTSchwanke more than once applauded the department as “very helpful.”

NHCRSchwanke said he had talked to Ed Jeffrey about operating on his line, and about perhaps operating the entire


stretch. Dick Currier, Ed Jeffrey, and he will meet in April.Speaking to the group at Schwanke's request, Currier said he had had “some discussions” noting that the

New Hampshire portion will generate “relatively low traffic....Get [the traffic] to Roger, and he can get it to Montreal.”

NHNThe New Hampshire Northcoast could provide an alternative routing for passengers. “I have talked to them briefly,” said Schwanke. He noted that there is a mile missing on the line from Ossipee to Conway.

CSRXThe Conway Scenic leases the line from Hazens to Redstone on the border, and operates excursion service.

Don Marson [see 13#05A] noted that if freight operates on the same track as excursion, under FRA rules the excursion traffic falls under “a whole new set of rules.” Writing one of [the required] plans for emergency preparedness requires 1200 man-hours.”

Schwanke responded that he has talked to NHDOT and to CSRX owner Russ Seyboldt. “They're all in


favor. [They've] gone back to the FRA and the NHDOT and they can keep their exemption.”

MDOTWhile NHDOT and VAOT “have been wonderful,” MDOT has shown more skepticism, wanting to see more in writing, Schwanke said.

He has talked to Dean Wood, who plans a pellet plant [see box in 13#05A], who is “receptive, both for overseas traffic and to the west.”

Port and EimskipSchwanke has talked with Pete Peterson, manager of Eimskip Logistics (ICE Express LLC), who showed “some interest.” He will meet with the manager of Eimskip East coast operations later.

Pan AmPan Am, said Schwanke, will be approached with Wayne Davis of Trainriders Northeast for a meeting, which will include Ed Jeffrey and Dick Currier. Schwanke declined to comment further: “They [Pan Am] have some thinking that is unique, but we have unique thinking too.”

Does this idea actually work?In an interview after the meeting, your editor noted to Schwanke that St.Johnsbury to Portland consists of approximately 180 miles of line, and the rule of thumb of 100 carloads per mile per year applied would require 18,000 carloads to break even.

Asked if he had that much traffic, Schwanke said, “Not in the first year.” He is exploring possible traffic, in meetings such as the one with the Route 113 Committee, and requesting potential shippers to come forward.

With traffic numbers in hand, he can go to investors.

CostsSchwanke told the group that to get the entire line to Class 3 would cost $35 million; signalling will cost an additional amount. He is targeting Class 2 track, 25 miles per hour for freight, for startup.

Just replacing the ties on the Maine portion of the Mountain Division will cost $9 million.

Physical limitsSchwanke reported that “we cannot do double-stack” due to a Route 302 bridge in New Hampshire, as well as the Cassidy Point bridge in Portland.

Desrosier also noted that while nationally lines can support 286,000-pound cars, much of New England is still limited to 263,000-pound cars.

InvestorsSchwanke spoke of two major investors who have signed on, whose names he can make public in three months. Each will put in $2 million to $5 million.

He also believes that major corporations will sign on to obtain advertising, including commercials shot on the train.

Passenger serviceA number of locations which could supply passengers have expressed interest, Schwanke noted: Jay Peak, the Balsams, Conway Scenic, Attitash, and Shawnee Peak.

When he asserted, “We are not a night train, we will run freight in the early morning, or mid-afternoon,” Marson took issue. “A railroad has only one thing to sell. You don't want to put handcuffs on the 24/7 service you need to be prepared to offer.”

Schwanke mentioned later that he, as a Canadian (born in Winnipeg) and American citizen, has relatives working for the CN and CP. He has obtained assurances from VIA Rail that he can get slots for the passenger


train into Montreal Central Station, as well as layover space.

StartupSchwanke told the group he'd like to start with freight in 2015. “Next year we could be spending $15-$30 million on ties, getting the track realigned, and adding new rail.”

Don Marson cautioned: “Knowing that track, and the work required, your timetable is very aggressive and maybe out of reach.”

Route 113 responsePhil Pomerleau, a member of the Route 113 Committee since its inception ten years ago, noted that the group “got $4.1 million from the state to put in rail to South Windham” and will continue “pounding the drum,” Bill Diamond, a state legislator key to obtaining those funds, had to step down due to term limits, but will run this November and “we will continue to keep his feet to the fire.” On Golden Eagle Railway, Phil said: “You have some real support.”

Larry Seidl, a trucker whose property abuts the track, said: “We need our own Flagler,” a reference to Henry Flagler, the visionary who started the Florida East Coast Railway and built out to Key West. He also said, “This is a field of dreams. The potential is here, we have all the components, if we don't get bogged down in working with the government. I'm enthused to see another direction.”

Desrosier responded, “You're the first transload center!”

TIGER VI. Caroline Paras of the Greater Portland Council of Governments, who staffs the Committee, reported that the federal government is now seeking proposals for the TIGER VI round of funding.

“We have been told” not to ask for capital funds by an informal connection to MDOT: Rob Elder's cousin works as a lobbyist for Cumberland County.

Paras suggested that the Committee seek planning funds to design “build-out” for the 750 acres now vacant along the line in Maine, which were in use when the train ran. {ANR&P coverage}

NEW YORKNYA: BROOKHAVEN BROUHAHA

14 March, DC. THE TOWN OF BROOKHAVEN FILED SUIT AGAINST BROOKHAVEN RAIL TERMINAL, alleging numerous violations, and also wrote the STB to re-open the Board's earlier decision [see 12#06B]. In the letter to the STB, counsel for the Town wrote:

'Simultaneously with this letter, a Town Investigator is issuing summonses to BRT for non-permit related violations of the Town Code, and a "stop-work" order for non-railroad related activities, and as indicated, the Town is commencing an action in New York State Supreme Court under N.Y. Town Law §§ 268(2) and 135, and New York common law breach of contract/breach of stipulation principles, seeking, among other things, a permanent injunction.' {STB website, filings page, Finance Docket No. 35141}

More in a future issue, when your editor has digested the complexity of the matter.

ALBANY: PIPELINE?*11 March. PILGRIM PIPELINE HOLDINGS IS EXPLORING A TWO-WAY PIPELINE TO LINDEN NEW JERSEY, according to George Bochis, Pilgrim vice president of development for Pilgrim. The proposed pipeline would largely follow existing rights of way along the I-87 and I-287 corridor, and would reduce the amount of crude oil moving on the Hudson River, Bochis said. “The pressure of the crude product coming in to Albany has created a market.” It would also connect to rail loading facilities in Newburgh [see 13#12B] and Selkirk.


To New Jersey, the line would carry up to 200,000 barrels a day of the light sweet crude which both CP and CSXT now rail in from the Bakken. It would not be used to transport heavy tar sands crude, which requires a heated pipeline, according to Bochis. To Albany, it would move up to 200,000 barrels a day of gasoline, diesel, heating oil, and jet and aviation fuel to Albany from the New York Harbor.

Port of Albany manager Richard Hendrick said he had not heard about the project, but said it would likely reduce the barge traffic on the river. He said in January and February alone, 50 barges loaded crude oil at the port, and the average barge transports 80,000 to 100,000 barrels at a time.

TimelineStill in its early stages, Pilgrim will not submit the proposal to federal and state regulators for about six months. If approved, the pipeline would not be operational until 2016 at the earliest. {Scott Waldman in capitalnewyork.com 11.Mar.14}

ALBANY: MORE CRUDE RESISTANCE ++12 March. ALBANY COUNTY EXECUTIVE DANIEL McCOY ORDERED A MORATORIUM on the expansion of the Global facility here. It could supersede the New York Department of Environmental Conservation permitting process [see 14#02B]. {Jad Mouwad in New York Times 13.Mar.14}

Global responseGlobal Partners responded in a letter to McCoy a letter calling the moratorium 'ill-advised, unnecessary, unlawful, and prejudicial to the company' and criticized the county for not consulting the state Department of Environmental Conservation. {Danielle Sanzone in Troy Record 14.Mar.14}

McCoy replied via statement: 'Instead of Global Companies using its resources to cooperate with efforts to prevent catastrophic public health and safety risks, Global unleashes a cadre of lawyers in a transparent maneuver to intimidate and bully the County from safeguarding the public health. We will not be intimidated.' {14.Mar.14 albanycounty.com}

QUEBECCMQR-MMA: OIL MUST ROLL*

19 March, Lac Megantic. MAYOR COLLETTE ROY LAROCHE ADMITTED OIL COULD AGAIN MOVE THROUGH THE CENTER OF TOWN. On the sidelines of a press meeting, she said she comprehends that oil is among the most lucrative products for the railway.

If CMQR properly repairs the line, demonstrates transparency, and begins with non-hazardous product, crude oil might again move.

Meeting with GilesShe said she met with CMQR's John Giles the previous week. He told her he will show that moving hazardous product on the rail is safe. {Claude Plant and Jacynthe Nadeau in La Tribune 19.Mar.14 (ANR&P translation)}

MMA: TRAFFIC FOR MAINE?20 March, Ottawa. POSSIBLY CONFLICTING REPORTS HAVE ARRIVED ON RAILCAR TRAFFIC. Up to this day, rail observers had reported only light engines moving.

However, Transport Canada stated on 20 March, in response to my question: Q. I understand that MMA is still not operating between Lac Megantic and Maine. Is this a voluntary embargo, or has TC or another agency forbidden that?'Rail traffic between Lac-Mégantic and Maine has resumed as the result of an agreement between the municipality of Lac-Mégantic, Montreal Maine & Atlantic (MMA) and the bankruptcy trustee. We understand


that through this agreement, no dangerous goods would be transported through Lac Mégantic. For information regarding the agreement, please contact the municipality or MMA.

'In addition, a Notice and Order is still in effect that requires a maximum speed of 10 mph in a number of locations and a manual protection at controlled grade crossings.' {e-mail to ANR&P 20.Mar.14 from Sandra Boudreau, senior communications advisor, Transport Canada}

MMA: EXPECTED CRIMINAL CHARGES22 March, Montreal. QUEBEC PROVINCIAL POLICE ARE CONFIDENT PROSECUTORS WILL LAY CRIMINAL NEGLIGENCE CHARGES against at least three people: the train engineer. and Ed Burkhardt, MMA CEO, and a third MMA employee.

According to police sources, engineer Tom Harding "knew that some of the mechanical brakes on the individual wagons were malfunctioning. Also, he also knew that the brakes would have been further affected after a small fire was detected on the train earlier in the evening."

The question of how many brakes needed to be applied to secure the 72-tanker train is a factor that investigators have been trying to determine for eight months, but QMI has been told that the effectiveness and functionality of the brakes seems to be the current focus of the investigation.

Burkhardt called Harding out publicly just five days after the tragedy. “There's no doubt that (Harding) didn't apply an adequate number of brakes, even though he had ample time to do so.”

Prosecutors have been handed the files, and are expected to lay charges in the near future. Legal sources have told QMI that up to a half-dozen people could face various charges in Canada's deadliest railway explosion. {QMI agency and Julie Marcoux 22.Mar.14}

MAINEPAN AM-PORTLAND: IMT PLANS*

12 March. MDOT PLANNERS UNVEILED FURTHER DETAILS OF THE EXPANSION OF THE CONTAINER TERMINAL HERE, at an 'Informational Neighborhood Meeting.' They stressed that the details were not final, and that they were there to gather information and opinions about the current plans.

Portland. Compare the above map with the map in FIND AND REPLACE QUESTION MARKS!!!!!! depicting the initial proposal. {MDOT graphic}


The terminal expands to the track. Craig Morin, the HNTB engineer consultant to MDOT, explained that the rail part of the terminal would operate “containers on chassis” without grounding. Boxes will come off the Eimskip ship and be drayed to the “staging ground” until a train arrives.

Since the existing terminal [see diagram] is already so narrow, he said, expanding the terminal west to the track will supply space for more efficient operation. In addition, the track could stop at the “dirt road” access to the Unitil/NGL terminal.

A concrete pad will support a reach stacker which will move the container from the chassis to the well-car, or vice-versa. The plan shows a 750-foot loading track, not “a magic number” said Morin, but it “will accommodate 18 wells.”

Single-stackThe planners also suggest starting with single-stack access [Pan Am out to Ayer has only single-stack clearance currently]. This requires only 30-foot-high lights, rather than the 60-foot lights in the existing terminal area which has stacked operations.

Sprague-switched?John Henshaw, executive director of the Maine Port Authority, explained that MDOT will acquire the Pan Am line east of the road to the Sprague Terminal at Cassidy Point. The Authority will assume the duty of switching the box terminal and Unitil, and will subcontract that, probably to Sprague, “though that is not yet definite.”

Sprague now switches its own terminal at Cassidy Point. Pan Am will retain two parcels, as shown on the map. The new alignment of the access to the terminal was chosen to maximize the usability of each parcel. Pan Am requested the state purchase the entire acreage at the west end because the land surrounding the line


was useless.

Growth of EimskipHenshaw emphasized that the Authority anticipates traffic growth. Eimskip will add a third vessel each month, and plans eventually to have a vessel call each week.

Other trafficMoreover, the IMT now “serves five or six other steamship lines” which land or pick up boxes in New York and then dray them to the IMT “on a Portland bill of lading.” That will continue.

Asked about other companies, Henshaw said that the rail terminal could be used by domestic customers, and the IMT is certainly open to calls by other vessels including those moving project cargo. Eimskip does not have exclusive access: “It leases the warehouse building and a couple of offices.”

Next stepsMDOT project manager Joel Kittredge said planners would hold at least one more neighborhood meeting, and then a full formal presentation of final recommendations to the Portland Planning Board. {ANR&P coverage}

NBSR: WOODLAND PULP EXPANSION, BUT NO NEW RAIL*12 March, Augusta. WOODLAND PULP'S ST.CROIX TISSUE WILL BEGIN OPERATION IN 2015, according to an announcement by state officials. Governor Paul LePage said, “It is bringing back what Maine was very, very strong in, in the paper industry. We've suffered from a lack of technology investment, and they're bringing in some of the newest technology.” Those gathered included Arvind K. Agarwal, CEO of Woodland Pulp LLC, owned by International Grand Investment Corporation [see 10#09B].

The new machinesAs reported in September [see 13#09B], Woodland Pulp has created a subsidiary named St.Croix Tissue. It will purchase two new tissues machines in Baileyville at a cost of $120 million. Each machine will generate 60,000 tons of tissue each year. The first will produce in 4Q15, and the second in 1Q16.

The tissue manufacturing will occur in an existing building that formerly housed a fine paper machine. The building will be expanded and renovated beginning this spring, according to spokesperson Scott Beal on 13 March. The machines will produce “a full range of tissue products” targeted for household consumption and other markets.

The company considered several other locations in the United States, but proximity to the Woodland Pulp mill was a key factor in the decision. “The presence of our pulp mill provided a unique opportunity for vertical integration of the new tissue machine project,” he said. The location and marketFinished product in the form of large rolls will be transported by truck to customers on the East Coast and in the Midwest, Beal indicated.

Pulp sourceWoodland Pulp will supply about 25% of its pulp production [estimated at 400,000 tonnes per year] to St. Croix Tissue, according to Beal. The balance, almost all of it exported through Eastport, will still go to market.

Chris Gardner, chair of the Washington County commissioners and executive director of the Eastport Port Authority, said by phone: “The impact of these [additional] jobs to Washington County cannot be understated. We look forward to seeing continued growth at the Woodland facility.”

No effect on Lincoln Paper and TissueKeith van Scotter, head of the Lincoln Paper and Tissue mill, the only other tissue producer in Maine, declined


to comment. Doug Ray of the state Department of Economic and Community Development said at the announcement in Augusta: “We don't feel [St. Croix Tissue] will have a negative impact on what Lincoln is doing because [Lincoln] have a [specialized] market already established.” [See 14#02B.]

Positive move for Woodland“It’s much better to see some value-added product made here than just exporting pulp,” said University of Maine wood science professor Robert Rice on 13 March. “It takes them away from a very vulnerable position of being only a pulp mill and puts them in a position to be a mill that produces a finished product,” which is “all a good sign.” The market for tissue is “fairly strong domestically and internationally.” {Tim Cox and Christopher Cousins in Bangor Daily News 12 & 13.Mar.14}

Rail impactOn 17 March Beal responded to questions about rail:

Q: Given the presence of rail, why would St.Croix truck rolls to the Midwest? Response: 'Our transportation alternatives assessment has indicated trucking to be the best business decision. Going forward, of course, our team will closely evaluate other modes of transportation. Like in many business decisions, economics and delivery schedules will drive the decision making.' Q: Woodland will produce no additional pulp, so the export of pulp via Eastport (and sometimes Saint John) will decrease?

Baileyville. The Woodland Pulp facility on the St.Croix River, with Canada on the right. The NBSR-operated, Woodland Pulp-owned line on the far right (east) runs north, over the river, and curves to the mill. The tracks into the mill are seen at the top-center of the photo (arrow).


Response: 'With the tissue machine project completed, there will be a decrease in the amount of pulp sold on the open market.' Q: The delivery of pulp logs and chips to the mill will not increase?

Response: 'At the present time we do not plan any increase in pulping capacity.' {e-mail to ANR&P}

MASSACHUSETTSPAN AM: SOME LAWRENCE CUSTOMERS

19 March, Lawrence. THREE PAN AM CUSTOMERS ARE DOING WELL HERE, officials at each said. Two are located off the Lowell Hill Industrial Track [see box], not to be confused with Pan Am's Lowell Industrial Track. The Lowell Hill track is the remaining part of the Lowell & Lawrence Railroad, built in 1848; it was abandoned in 1926 and 1936. {Rail Lines of Southern New England, Ronald Dale Karr}

The aerial view shows how the two customers on the Lowell Hill Industrial Track, Sekisui and Whittemore, relate to each other.

From Pan Am Employee Timetable #2.

Lawrence. Three Pan Am customer locations. {ANR&P map}


WhittemoreLocated at 30 Glenn Street, Whittemore expands perlite and vermiculite received by rail. Its website states that 'it manufactures a wide range of standard and customized products that are used in variety of market applications in the horticultural, construction and industrial sectors.' Some outbound product moves by rail.

Whittemore cars are parked on the spur which serves the rest of the industrial park there. If necessary,1 a Whittemore official said, "Pan Am handles that" moving the Whittemore cars out of the way.

She declined to state traffic levels, but said the company is "doing a bit more than usual." {ANR&P discussion 20.Jan.14}

Whittemore car tracesA trace shows one car arrived empty on 26 January via Rotterdam Junction and one loaded proceeded out of Lawrence on 3 March headed for Lozeta, Missouri.

Trace of a second car, HERX313106, shows it arrived at Rotterdam Junction on PAS from Whittemore on 7 March, and reached Lozeta on 12 March. It was emptied at Lozeta on 20 March, and going back to Lawrence. {courtesy from a source close to a Class I railroad}

SekisuiThe website lists Sekisui Voltek, a subsidiary of Kyoto Sekisui Chemical Company, Limited, as 'the leading manufacturer of crosslinked polyolefin foam in North America.'

Doug Sands, plant manager, said on 19 March that he receives “30 to 35” covered hoppers of plastic

1 A visit to the site in February 2014 revealed sidings to two other buildings north of Whittemore, but no signs of any recent rail traffic. {ANR&P coverage}


pellets, “mostly from Texas,” each year.

Outbound, Sekisui delivers its product only by truck.

Service and track workSands agreed with other Pan Am customers, that in general service has improved over the past two years. He noted that MBTA track work has caused some delivery problems recently [Pan Am uses MBTA track between Lawrence and Haverhill – editor] and that sometimes cars get hung up in Rotterdam Junction or elsewhere “for a week or two at a time.”

Within the past year, Pan Am has completed tying together two stub-end switches to create a double-ended siding just west of Route 28, providing a run-around track to improve switching. Previously, the switcher had to come out of the Lawrence yard light, pull the empties back to the yard, and then run the loaded cars in. This required crossing Route 28, and concomitant flagging of the crossing, four times. Now, the switcher can spot the inbound loads on the runaround, pull the empties back to the runaround, return to spot the loads, then take the empties to the yard. That requires crossing Route 28 only twice.

Sekisui car tracePer a trace, a DUPX car was spotted at Sekisui on 6 February and was still there on 20 March.

B&D Advanced WarehousingThis company at 201 Merrimack Street was located on the Salem Industrial Track in New Hampshire [see 99#12], as owner Bob Borenstein reported in 1999. In 2003, as the New Hampshire track was abandoned, he moved to Lawrence and called it “an excellent move.” [See 03#03B.]

He continues to use rail, 'probably between 120 and 140 [cars] per year now. up from 100 in 2008.' {e-mail to ANR&P 5.Mar.14}

Lawrence. Sekisui, left, has three cars on its sidetrack, and Whittemore, right, also has three cars, on the spur into the industrial park. {ANR&P photograph by Richard Alleman 16.Feb.14}


MC: NEW BEDFORD WORK*5 March. THE SWITCH TO MARITIME INTERNATIONAL WAS GOING IN when John Ogren of Northern Rail Services spoke this day. “All the timbers were already in, we were just sliding the switch onto the timbers.” It was removed from Wareham, also a state-owned line operated by MC.

The spur [see map 04#05A] was funded by the 2013 MassDOT IRAP [see 13#05A], with the state paying $65,889 and Maritime paying $43,926.

Future work in New HavenNorthern Rail “actually had work we could have been doing all winter,” he said, but the severe weather barred that.

In April, Northern Rail will return to New Haven, where it has worked on the rail in the port crossing Waterfront Street [see 12#07A and map in 13#01A]. “We'll do all the crossings.”

He anticipates a “good year” in 2014. {ANR&P discussion}

NEW HAMPSHIREMBRX: CONTRACT UPDATE*

19 March, Wilton. NHDOT AND MBRX WILL “SOON” COMPLETE THE LEASE AGREEMENT covering the state-owned part of the Hillsboro branch. {e-mail to ANR&P from Leishman}

The department awarded Peter Leishman the contract in February [see 14#02A] over a competing bid from NHCR. Pan Am Executive Vice-president Cynthia Scarano said recently that Pan Am did not submit a bid this time around, but endorsed the NHCR bid.

Complaint against Commissioner ClementLeishman is also pursuing a complaint against NHDOT Commissioner Chris Clement for conduct in the last round of bidding. In a letter to Senior Assistant Attorney General Ann Rice, Leishman accused Clement of misrepresenting his first bid before the Executive Council.

"I have some real concerns with the commissioner's comments back in May when he said my application failed to contain information about how to get in touch with me, who the stockholders were, and other information that was clearly in my response to the RFP," said Leishman recently. "My concern is that any official, whether they be a legislator, commissioner, or whatever, has to make accurate representations before any government body, and at the time I don't believe he (Clement) did that. I don't know if that's because he was given inaccurate information or not."

Leishman has received a letter from the Attorney General's Office stating that Clement will not be available to discuss the last RFP process while the current one is underway.

Future cooperation with commuter railWhile in the past Pan Am had withdrawn from discussion about passenger rail on its track to Concord, the railroad has changed its approach. Even though Pan Am did not participate in this bidding, Scarano said, “We can't really comment on this one, because we didn't participate in it. However, we have been working with the NHDOT regarding passenger service throughout the state and will continue to do so.” {Dave Solomon in New Hampshire Union Leader 18.Mar.14}

PAN AM: SEA-3 HEARING*10 March, Newington. THE TOWN PLANNING BOARD CONTINUED ITS HEARING ON THE PROPOSED PROPANE TERMINAL HERE [see 14#02B]. More than 100 attended, including officials from the City of Portsmouth.


FRA commentsJohn Killoy, FRA acting deputy regional administrator, at several points stressed the safety of propane by rail. “It's moved very safely in the type of cars it's moved in. Accidents are few and far between.”

When residents raised concerns about the inspections of bridges along the line, Killoy acknowledged that it is up to the rail line to inspect its own tracks and bridges, but the FRA could “audit the inspections” and do follow-up inspections as necessary.

Pan Am commentsExecutive Vice-president Cynthia Scarano repeated a promise that she made on 5 March: If the Sea-3 project is approved, the railroad will upgrade the line from Class 1 to Class 2, adding 10,000 new ties “in a construction season.” Pan Am, she said, inspects Class 2 lines twice a week and Class 1 lines once a week.

Scarano again repeated Pan Am's intention to operate the cars at 10 miles per hour, and again stressed, “I can't guarantee that.”

When a Planning Board member asked if Sea-3 officials would commit to the upgrade to Class 2, Portsmouth attorney Alec McEachern, representing Sea-3, said neither Sea-3 nor the Planning Board could tell Pan Am what to do once the rail cars leave Sea-3's property. “Your jurisdiction ends when [the railroad] come[s] to take [the cars] away.”

Portsmouth residents request studySome Portsmouth residents have created a website, www.nopropanetrain.com. Attorney Christopher Cole represented them at the hearing. Saying the group wanted the board to make sure Sea-3 and Pan Am could safely handle "millions of gallons of flammable material," he requested the board to order Sea-3 to conduct a "comprehensive safety study" and have the company pay for it, which Newington zoning laws allow the town to do.

Portsmouth City Manager John Bohenko spoke on behalf of Mayor Robert Lister, who couldn't attend the meeting because he was traveling. “The city of Portsmouth is very concerned with the transportation of propane through the city.” Bohenko said Lister supported the request for “a comprehensive safety assessment” and a “comprehensive environmental impact study.”

Next stepToward the end of the hearing, Planning Board Chair Denis Hebert acknowledged: “I know we do need propane for this area, but we need to do it safely.” If the board didn't think the expansion project could operate safely, “I don't think this board will approve it.”

The board made no decision, and continued the hearing until March 24, when NHDOT representatives are scheduled. {Jeff McMenemy in seacoastonline.com 11.Mar.14}

PAN AM: MORE ON SEA-3 TERMINAL ++12 March, Portsmouth. THE PROPANE TERMINAL WILL HAVE 12 CAR SPOTS WHEN THREE MORE UNLOADING RACKS ARE ADDED, according to Stephen Haight, the engineer designing the additional racks for the Sea-3 in Newington [see 14#02B]. He explained that each rack will have a spot on either side, as the existing three racks do. Thus Pan Am will be able to spot 12 cars at a time, after switching out 12 empties. {ANR&P discussion}

Reportedly Pan Am will deliver a cut of cars, between 6 and 12, each day. {ANR&P discussion}

Inspection of tracksIn March, the FRA released nearly 60 pages of reports about three inspections of the line to Newington after Seacoast Media Group submitted a Freedom of Information Act request.

Inspections conducted from Newfields to Portsmouth and from Portsmouth to Newington on 1 March 2013 show no defects found by a state inspector, though only one unit was inspected per inspection.


On 3 October an inspection from Newfields to Portsmouth found 32 defects in the 21 units inspected, including four incidents of "loose, worn or missing switch clips," one incident of crossties "not effectively distributed to support a 39-foot segment of track,” 12 incidents on different sections of track of "vegetation interfering with railroad employees performing normal trackside duties," nine incidents of "no effective support ties within the prescribed distance from a joint," two incidents of crosstie defects, and nine incidents of no "effective support ties within the prescribed distance from a joint."

On 14 November a state inspection conducted from Newington to Portsmouth found two defects: one "no effective support ties within the prescribed distance from a joint" and one "rail-end mismatch on tread of rail exceeds allowable."

Pan Am Executive Vice-president Cyndi Scarano was examining copies of the reports on 11 March and did not comment. {Jeff McMenemy in seacoastonline.com 12.Mar.14}

Inspection results “normal”“The defects, I would say, are normal and there was nothing that was beyond what I encounter with any other railway,” John D. Robinson, NHDOT rail safety inspector/investigator said 17 March. While the inspection report may seem troubling to a layman, the railroad has 30 days to make the repairs.

“The track is compliant with the federal regulations for the designation of a Class 1 track,” Robinson said. {Jeff McMenemy in seacoastonline.com 19.Mar.14}

RHODE ISLANDPW: CUSTOMER DISAPPEARING

19 March, Central Falls. OSRAM SYLVANIA WILL CLOSE ITS PLANT HERE IN SEPTEMBER. About 88 workers produced light bulbs here; declining sales of traditional lighting products requires a new lighting product portfolio that meets market needs and ensures company growth, the company said.

PW serviceThe railroad brought silica sand [see photo in 06#02B]. 'Less than 50 cars a year,' reported Charlie Rennick, PW spokesperson. {e-mail to ANR&P}

Manchester NH and York PA as wellOsram also closed plants in Manchester and York. The Manchester facility did not use rail. {AP 20.Mar.14}

VERMONTVAOT: GOVERNOR'S RAIL BUDGET*

February, Montpelier. THE GOVERNOR PROPOSED $41 MILLION FOR RAIL FOR FY15 [1 July 2014-30 June 2015] covering standard maintenance and subsidies, funded with $22.6 million in federal funds, $14 million from the state transportation fund and $2.7 million in transportation infrastructure bonds. The totals do not include Federal Highway Administration-funded work on the Middlebury tunnel and on some crossings. The requested rail budget represents 5.9% of the total Vermont transportation budget request of $686 million and is the largest rail budget Vermont has ever seen, thanks to two TIGER grants and other federal contributions.

The budget does not contain remarkable new


projects; it continues investment in priorities like the Western Corridor, upgrading bridges for 286,000-pound freight and speeding the route to Montreal.

The largest amount of funds will be spent on the “Western Corridor” between Bennington, Rutland and Burlington. Vermont received a Federal TIGER V grant funding some of the work [see 13#09A] and Governor Shumlin has made a commitment to extent intercity passenger service to downtown Burlington, expected in 2015.

Western corridor: Middlebury tunnelThe largest single project, the “Middlebury Tunnel,” is funded almost completely with $11 million in federal highway funds plus a state match. The state will replace two road bridges in downtown Middlebury with a concrete box tunnel providing rail clearance to 21 feet. The walls can provide 23 feet clearance to meet any future needs, but the tunnel won’t be excavated to this depth at this time.

Western corridor: welded railMore than $8 million is budgeted for welded rail between Rutland and Burlington, replacing 1940s Rutland single head jointed rail that cannot support competitive passenger train speeds.

Western corridor: Rutland-LeicesterIn FY15 and FY16, the state plans to spend $11.192 million.

Western corridor: bridge work for GMRC and 286More than $8 million is requested for various bridge projects between North Bennington and Salisbury including replacing bridge 219 in Florence ($3.5 million FY15, total expenditure $5 million) that will clear the last barrier for Omya to ship cars weighing the national standard of 286,000 pounds. Two bridge repairs in Sunderland are budgeted at $3 million. In addition a further $1.5 million is budgeted for four bridge projects on the Green Mountain Railroad.

Amtrak subsidyTo support Amtrak intercity trains in Vermont, $7 million is requested – $1.5 million for the Ethan Allen to Rutland and more than $5 million for the Vermonter.

Including the out years of Fy16, FY17, and FY18, Vermont will have spent $46 million.

NECR to CN The budget covers finishing the $12.6 million TIGER-funded NECR rail and trackbed upgrades from Saint Albans to the Canadian border, making NECR 286,000-capable through Vermont, and class 3-capable for passenger service to Montreal (a project currently delayed by US Customs and Border Patrol which needs inspections at Montreal Central Station).

State bridge inspectionsAbout $2 million is requested for the state railroad bridge inspection program. New federal regulations require inspection of all railroad bridges annually and a load-rating. This had not been previously done on a consistent basis. The state is responsible for upkeep on most bridges on state-owned lines operated by the Vermont Rail System.

Freight assistanceThe successful Three-Way Partnership which funds new rail sidings for new or expanding rail shippers has $200,000 from the state, matched by equal contributions from the railroads and from potential shippers, to produce capital expenditures of $600,000 per year.

In FY13, total capital expenditure has come to $250,401. More in a future issue.


WACR-Montpelier subsidySome $260,000 will go to subsidize the Washington County Railroad-operated Montpelier Junction - Barre line, as happens annually.

VAOT has already spent, the tables in the budget show, $1,838,251 on the WACR-Montpelier for subsidy and repair.

WACR-ConnRiverThe budget also contains $300,000 line item for crossties on the Washington County White River Junction - Newport line. {Chris Parker of Vermont Rail Action Network analysis 5.Mar.14; text of budget as submitted}

CMQR-VRS: DESIRE TO PROCEED12 March, Burlington. VRS IS “OPEN TO DOING WHATEVER THEY NEED TO DO TO MAKE [THE DEAL] WORK,” said David Wulfson, VRS president. VRS will not operate “any farther than we did before” to interchange with CMQR, in Newport [see map in 14#01A] “We are happy they will be operating the whole thing.”

He added, “We miss the Maine traffic,” which is blocked because trains still do not operate between Maine and Lac Megantic. {ANR&P discussion} [See Regional.]

VRS: MORE ON THE RUTLAND YARD MOVE12 March, Burlington. DAVID WULFSON WAS NOT UNHAPPY THAT THE CITY OF RUTLAND HAD OMITTED MOVING THE RAILYARD from its Five-year Plan [see 14#02B]. The move “started out as a city push” because trains in downtown Rutland were blocking grade crossings. “We went along for the ride.”

The project was in limbo for years in part because three municipalities had to agree: Center Rutland, Rutland Town, and Rutland City. “All parties agree that the money can be better spent elsewhere” such as upgrading the bridges for 286. {ANR&P discussion}

History of projectRutland, behind the effort of the Rutland Redevelopment Authority which began in 2001 (if not earlier), wanted to move the railyard out of downtown [see 01#08B et seq]. See map here (from that issue) of the proposed location.

MARITIMESCBNS: UPDATES ON TWO CUSTOMERS*

10 March, Montreal. THE TRAFFIC OF MICHELIN AND NUSTAR COULD VARY IN THE FUTURE, noted Mario Brault, president of Genesee&Wyoming Canada and CBNS.

MichelinMichelin Tire, over the next 18 months, plans to cut the production of small car and light truck tires at its plant in Granton [see map 09#04B] due to a decline in demand. Michelin said the plant will continue some high-performance tire production and tire membrane production; the existing rubber mixing operation will continue. {Michelin release, Canada Newswire 3.Mar.2014}

Brault called it is a bit premature to determine the impact on the railway. 'We have some indication it will slow us down a little bit; however, depending on how the plant changes their line of production we may be OK. The worst case scenario is we will be minimally impacted and best case scenario is we will not be. I don’t think it will be a total disaster [for us] but certainly a disaster for the local economy.'

Michelin is a 'significant customer' for CBNS. CBNS moves no outbound traffic. 'We move primarily carbon blacks via private covered hopper cars for rubber mixing operations as well as some synthetic rubber and oil. A decent portion of rubber comes in via Port of Halifax by container also [and is presumably drayed to


Granton – editor]. We cannot disclose number of carloads, this is information is proprietary to our customer."said Brault.

[In 2007, Michelin was importing rubber in containers over Halifax. See 07#02B.]

NuStar plansBrault said CBNS could pick up some business if NuStar Energy LP of Texas does start to rail crude from Western Canada to its Point Tupper facility for export [see story and map 13#09A].

Brault said CBNS people have been in close touch with NuStar. 'We have had a couple of meetings already. Everybody is enthused and looking forward to securing as much business as we can.'

Tank car fleetBrault has monitored Irving Oil’s push to renew its tank car fleet [see 14#02A]. CBNS does not own any of these types of tank cars but is all for their renewal. 'We don’t want any problems with these cars but we also have a common carrier obligation that we have to move the traffic tendered to us. CBNS is not in a position to invest in a tank car fleet now and not likely anytime in the future,' he wrote. {e-mails to ANR&P correspondent Tom Peters 10 &12.Mar. 2014}

NBSR: IRVING INVESTMENTS IN LUMBER AND PULP*14 March, Saint John. IRVING PULP & PAPER WILL SPEND $500 MILLION ON ITS PLANTS: $450 million in a two-phased modernization program of its west side pulp mill in Saint John {Irving release 13.Mar.2014} as well as $23 million in Chipman and $15 million in Doaktown.{Irving release 14.Mar. 2014}

Chipman and DoaktownThe Chipman $23 million will create a new studwood production line at Grand Lake Timber, served by CN. The Doaktown $15 million will create a new sawmill at the White Pine Centre of Excellence [not on rail], the largest white pine mill in Atlantic Canada. {Irving release 14.Mar. 2014}

Rail to benefitJ.D.Irving’s Mary Keith wrote: 'Rail is an important and growing link of logs to mills and finished product to market. In 2013 we exported about 72,000 tonnes of pulp and paper out of the Port of Saint John. Some 93% of the lumber from the New Brunswick sawmills is shipped outside the province. We would produce all the lumber for all houses built in one year in N.B. in 12 days.' Keith said there is no government money involved in any of these new investments.

Irving will be in northern New Brunswick and Sussex before the end of this month to make additional announcements. {e-mail to ANR&P correspondent Tom Peters 14.Mar.2014}

RAIL FREIGHT FACILITIESDescribed in this issue.BD Warehouse (Pan Am, Massachusetts) Description.Brookhaven Rail Terminal (NYA, New York) Town attacks.Eimskip (Pan Am, Maine) Track to marine terminal.Global Partners (CP, New York) County suspends improvements.Irving mills (CN, New Brunswick) Company investing $500 million.Maritime International (MC, Massachusetts) Switch re-installed.


Michelin (CBNS, Nova Scotia) Production decrease.Nustar (CBNS, Nova Scotia) Possible crude export.Osram Sylvania (PW, Rhode Island) Closing in September.Sea-3 (Pan Am, New Hampshire) NIMBYs attack.Sekisui (Pan Am, Massachusetts) Description.Whittemore (Pan Am, Massachusetts) Description.

PEOPLE, EVENTS

Bill DeWitt, former BNSF executive and then professor of logistics at Maine Maritime Academy, has accepted an appointment as executive director of the Intermodal Transportation Institute and Clinical Professor in the University College at the University of Denver effective 1 June.


ATLANTIC NORTHEAST RAILS & PORTS

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Chalmers (Chop) Hardenbergh, publisher and editor [email protected]

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RailWatch (1994-1997) and later Atlantic RailWatch (1998-1999), is dedicated to the preservation and extension of the regional rail network. The editor believes that publishing news on railroads and ports spotlights needed action to preserve the rail network. The publication also imbues the region with a sense of an interdependent community, employing the network to move rail and port traffic. ‘No railroad is an island, entire onto itself.’

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