chamber of commerce

Senator Savage, Representative Fisher, honorable members of the Joint Standing Committee on Transportation

I am Representative Sharon Libby Jones. I represent House District 111, which is all of Piscataquis County, except for 4 towns. I live in Greenville, on the shores of Moosehead Lake. I am before you today to testify about the importance of the rail system in Maine and the need for a coordinated railroad policy in our state. I will first give you some background as to why I sponsored the original bill that resulted in the creation of this task for your committee. Later today, I will be discussing some of the economic impacts that our rail system has, as I see it, from where I sit as a resident of Piscataquis County.

Even before I returned to the Legislature, I was concerned that the Bangor and Aroostook Railroad was again in financial trouble. Most of us are aware that this railroad has had a troubled financial history. It has been like the phoenix, always rising out of the ashes of its latest financial trauma. This time, however, the reports were more grim than usual and history has proven that there certainly was great reason for concern. At the same time, I began to receive telephone calls from employees, towns and businesses. They told me tales that led me to believe that the company was teetering on the verge of bankruptcy. My level of concern was rising when literally the towns in my district had property liens against the B&A maturing.

Meanwhile, back in Greenville, our town officials and selectmen � and I am also a selectman in my town � were meeting with a passenger rail company who has significant financial and infrastructure investments in the town of Greenville and in Little and Big Moose Townships. Seasonal passenger train service will begin next June to tourists from around the world. We are also working on several economic development plans, one of which would require the building of a spur from the East West rail line, commonly known as the CDAC, into our industrial park. In fact, the railway is considered such an integral part of our economic development in this part of Maine that our promotional brochure for Piscataquis County features a train locomotive on the front cover! You should all have copies of this brochure and you can see for yourselves.

I began to make inquiries. In the event of a bankruptcy or sale of the company to interests that would not consider the best interests of our state, what can the state do legally? A bankruptcy or insolvency was the worst possible scenario. Over time, I learned that it just might not be the worst scenario, but rather, what would be worse would be if a new owner chose to not purchase the CDAC, or an owner chose to remove the tracks! The implications of such an event, I have learned, have enormously far reaching negative possibilities � certainly for Greenville, but also for the paper industry in Maine, and all of Maine as well. I am sure that many of those who will follow me with testimony will outline specifically those negatives. Briefly, they include the distinct possibility of monopolistic pricing for rail transport of paper products to the Midwest printing plants. They include the closing of the only locomotive repair yard north of New York � the Derby Yard located in Milo. They include wasting an enormous potential for tourism via the port at Searsport and across the CDAC from Halifax to Montreal via Greenville. The list goes on.

For my part, as I investigated what we could do to make the state's interest known, to help save our constituent's jobs and livelihoods, to help our paper companies avoid predatory monopolistic transportation costs, and to help our tourism industry from Searsport to Lake Megantic, I learned that the state does not have a comprehensive rail policy. I was stunned. I also learned that the state's ability to intervene in a situation where the state's interest is vital, is limited at best. I could foresee a scenario where the very economic lifeblood for the part of the state north of Bangor would be choked off. I could foresee our paper industry crumbling and becoming uncompetitive. I could foresee less and less economic development due to our lack of transportation infrastructure. These options were and are unacceptable to me and to my colleagues who live along the Bangor and Aroostook Railway lines.

There has been significant attention and investment in the railway corridor in the southern part of our state � both the Guilford project that brings rail service up to Portland and onto Brunswick eventually, as well as the intermodal terminal project in Auburn that utilizes part of the St. Lawrence railway. These are terrific projects, for which we should all be proud and thankful for their success. They should not, however, be the only rail projects of importance to our great State. The very economic lifeblood of our state's most traditional industry � the paper industry � relies on the railway. The very possibility of economic development for the poorest parts of the state rely on the railway. We cannot continue to treat the rail system in Maine as if it isn't a vital utility for all Mainers.

That is why I proposed the original legislation that resulted in this study for the Transportation Committee. That is why I am here today before you. I urge you to listen to everyone who has come to testify carefully. I know that you will learn just how vital the railway is for so many, many Maine citizens and employers.

I thank you for your time and attention and I will look forward to coming before you again later today.

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