What's next for MMA?

I don't see why not. Not sure what would take that routing other than the lumber and paper that MMA interchanged with NECR and WACR. Could we see possible fuel or propane shipments to VT from Irving? Anything is possible I suppose. Although I'm not sure Irving would be interested in the VT trackage which leads to another question. If it came down to no other operator interested, could the State of VT with or without the PQ purchase the ROW and designate an operator? I'm assuming a state could not and would not purchase land in another country in order to keep an interchange open. Also assuming if say WACR is designated operator, would they have to establish a Canadian entity as well?

fogg1703 wrote:.........Could we see possible fuel or propane shipments to VT from Irving? .......

Not to stray off-topic, but how far is Irving’s reach into New England & New York? The Oil branch of the family......not JD Irving (the railway). I know they’re throughout ME, VT, & NH......any pumps in MA, CT and NY?

Just to wrap up the off topic discussion regarding fuel shipments in VT, McIntyre Fuel has multiple outlets in VT and Western NH that recieves fuel by rail from Albany. Global at the Port of Albany loads the cars and its a CP/VRS move. Global also has a terminal in Burlington. These loadings sometime have the "Tank Train" connected cars as well as "loose" tanks. Now I'm no expert in the petroleum industry however I beleive most contracts of this type are long term. Whether this is something to "sweeten the pot" for a possible Irving acquisition of the VT trackage as they can make inroads as far as supplying fuel and propane throughout the NE Kingdom via the Newport gateway, we will have to wait and see. I do think this is interested as it may be a return to whats "old is new" when the CP used to ship large amounts of finished product out of Saint John via rail.

Now back to our regularly scheduled discussion.

From The Portland Press Herald:

The Portland Press Herald wrote:Canada's transportation agency says a U.S.-based rail company whose runaway oil train caused a fire and explosion that killed 47 people in a Quebec town has lost its operating license.

The agency said Tuesday it is suspending the certificate of fitness for the Montreal, Maine & Atlantic Railway.

The agency says it is not satisfied that the company has demonstrated its third-party liability insurance is adequate for ongoing operations.

Read more at: http://www.pressherald.com/news/Montrea ... ense-.html" onclick="window.open(this.href);return false;

MMA has been suspended from operating in Canada:
http://www.cta-otc.gc.ca/eng/canadian-t ... y-suspends

MEC407 wrote:From The Portland Press Herald:

The Portland Press Herald wrote:Canada's transportation agency says a U.S.-based rail company whose runaway oil train caused a fire and explosion that killed 47 people in a Quebec town has lost its operating license.

The agency said Tuesday it is suspending the certificate of fitness for the Montreal, Maine & Atlantic Railway.

The agency says it is not satisfied that the company has demonstrated its third-party liability insurance is adequate for ongoing operations.

Read more at: http://www.pressherald.com/news/Montrea ... ense-.html" onclick="window.open(this.href);return false;

This is going to throw a large wrench into the works. Could certainly cause whoever had agreed to provide debtor-in-possession financing (the W&LE, I guess?) to back away citing a material-adverse-change in the company. I'd also imagine that it tilts the field of potential acquirers toward the big guys-- GWR, or maybe CP itself.

Ridgefielder wrote:This is going to throw a large wrench into the works. Could certainly cause whoever had agreed to provide debtor-in-possession financing (the W&LE, I guess?) to back away citing a material-adverse-change in the company. I'd also imagine that it tilts the field of potential acquirers toward the big guys-- GWR, or maybe CP itself.

This has the potential to turn a horrific tragedy into a economic disaster for the region as well. Given the amount of time bankruptcy proceedings can take, I hope this isnt the end of the Moosehead as I can't see anyone, including big players, getting involved without the liabilities taken care of.

The way I read the statement from Transport Canada is that it orders the cessation of operations by MMAC, but does not indicate that someone else cannot step in to operate:

Order No. 2013-R-266 suspends Certificate of Fitness No. 02004-3 effective August 20, 2013, permitting MMA and MMAC time to arrange for the orderly cessation of their operations in Canada.

I would venture to bet that they are negotiating with other potential operators at this very moment.

The PPH article has been updated with some quotes from Mr. Burkhardt:

The Portland Press Herald wrote:The railroad's chairman, Ed Burkhardt, said staff are still exploring what the order will mean for the company and are formulating a response. However, Burkhardt said the company does not have plans to appeal the ruling, and that it will certainly make finding a buyer for the troubled railroad. [sic]

"Why would we (appeal)? What's the gain?" Burkhardt said. "We're looking at this, is all we can say right now. We're not sure how we'll respond. We may just follow that order and shut down in Canada. It may not effect operatins in the U.S."

Read more at: http://www.pressherald.com/news/Montrea ... ense-.html" onclick="window.open(this.href);return false;

From the above Portland "Press-Herald" link:

The company's third-party liability insurance is capped at $25 million

And from the Canadian Transportation Agency ruling at http://www.otc-cta.gc.ca/eng/ruling/2013-R-266:

According to MMA’s and MMAC’s insurance broker, the Lac‑Megantic accident has resulted in the impairment of the aggregate limit by one half.

Probably, the total coverage per incident is either $12-1/2 million or $25 million, and the total coverage per policy period, probably 1 year, is either $25 million or $50 million. About 5 years ago, railroad insurance in the United states might cost $18,000 per year for $3 million per incident, up to $6 million per year, with $25,000 Self Insured Retention. I don't know how much additional coverage would cost, if priced after 1 incident had already occurred!
The prospective primary insurance companies were not willing to increase to more than $6 million per incident, which could explain why XL is the insurance company mentioned in earlier reports. They also are in the Xcess Liability insurance business.

mwhite wrote:MMA has been suspended from operating in Canada:
http://www.cta-otc.gc.ca/eng/canadian-t ... y-suspends

When Guilford placed the D&H into bankruptcy in 1988, and in just a matter of days, the NYS&W was operating it. This could hold true with the MM&A lines in Canada also. They are going to have to get the line operational once again through Lac-Méganitc so that some revenue can come in. Does anyone know how the cleanup process is progressing and when the track might be restored through the town?

Other than CP or CN, what Canadian based RR can service the MMAC trackage under the canadian version of a
"Directed Service Order"?
This will be a "split" RR for a while untill the TSB is finished investagating the wreck at Lac-Megantic,
if rebuilt,the line will be outside of the town limits

Backshophoss wrote:Other than CP or CN, what Canadian based RR can service the MMAC trackage under the canadian version of a
"Directed Service Order"?
This will be a "split" RR for a while untill the TSB is finished investagating the wreck at Lac-Megantic,
if rebuilt,the line will be outside of the town limits

How about New Brunswick Southern?