What's next for MMA?

Uh-Oh....... Do I see E. Hunter Harrison lurking in the weeds ? If the pols throw enough cash his way to help CP bring the MMA up to Class One standards he might bite. I think he's got in for the CN and would like to jam them up and go head to head in the east. Tafisa traffic, return of the oil trains, a Class One track structure and we know
CP is a first class outfit, from trackmen to dispatchers to train and engine service personnel etc. I was perusing some of the MMA pictures offered on this board, their stick rail looks positively spooky with heavy unit oil traffic wheeling over it.. I think EHH is circling and really mulling it over and he's got a stack of cash in his wallet to boot !

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"?

SLQ. Interchanges with MMA at Lennoxville. Could handle Tafisa when track reopens in Lac Megantic as well as customers MMA has on existing trackage rights to St Luc or CP could run from St Luc to Sherbrooke. SLQ/SLA could run the VT trackage as well as the parent G&W has entities in both countries until an operator is identified.

The MM&A did not meet the Canadian Govts fitness report, meaning they do not have enough insurance to cover a 'second' disaster. To me, this means their license to operate in Canada has been revoked.

It may be a possibility that trains through Lac Megantic will never run again. There is really only one customer there, Tiafa, and they could probably truck their products to a transload somewhere.

pnolette wrote:

fogg1703 wrote:Agreed on all fronts CN9634. Even if the state were to somehow get involved, Irving's willingness to expand ops at Searsport and their already good working relationship with Maine has them as a clear favorite. When the Irving/CN deal expires look for the Moosehead to be self sufficient with at least 2 trains each way daily, without the oil trains returning. They are handing over one train daily now to CN and then running a 2-3 day/week SJPO with PAR. I could see that pushed to daily if the can have a next day- day 1/2 handoff to CSX via CP in Montreal for eastern seaboard delivery. If I were PAR I would be worried.

I wonder how bad this could hurt PAR with little or no maritime traffic

Not very much. They will just be able to rip up or sell 50 miles of marginal mainline if worse came to worst.

gpp111 wrote:It may be a possibility that trains through Lac Megantic will never run again. There is really only one customer there, Tiafa, and they could probably truck their products to a transload somewhere.

Very doubtful. I believe the speed with which this is occurring indicates an intention on the part of the Canadian government to transition the lines to new ownership as fast as possible.

gokeefe wrote:

gpp111 wrote:It may be a possibility that trains through Lac Megantic will never run again. There is really only one customer there, Tiafa, and they could probably truck their products to a transload somewhere.

Very doubtful. I believe the speed with which this is occurring indicates an intention on the part of the Canadian government to transition the lines to new ownership as fast as possible.

As long as there are promises made and eventually fulfilled to re-route the line around downtown it sounds like local officials are well aware that the traffic must resume in the interim for everyone's own good. If Quebec takes any tangible economic hit from the traffic disappearing that directly impacts the amount of rebuilding investment the town is going to be able to get. That is more important right now than whatever residual PTSD they have about the existence of freight trains through their town. The gov't is acting prudently in making sure that they get a safe and competent operator in there...and fast.

Notice also, as others have postulated that the revocation of the operating certificate potentially impacts the ability of the company to reorganize under Chapter 11 but would potentially force an immediate disposal of assets to new ownership.

As long as there are promises made and eventually fulfilled to re-route the line around downtown it sounds like local officials are well aware that the traffic must resume in the interim for everyone's own good.

The MM&A said they would consider rerouting their line around the town. One can not consider this proposal to be very serious. I think it was said to try to appease the town. It would cost many millions and probably take a couple of years to survey, purchase, and then build a line around the town, assuming that such a potential route even exists.

There does not seem to be any hurry to restore service through town, at least on the part of the local govts.

It appears the Canadian Govt wants the MM&A to stop operating. It could require many months for a sale to take place. If the license to operate is revoked, that means service will not be restored until after a potential sale is made, unless some kind of outside operator was appointed by the Govt until a sale could take place. But, I doubt there is anyone very seriously interested in the MM&A Canadian lines right now, the property is literally radioactive.

The Moosehead subdivision is a difficult line to operate, lots of hills and curves, and with no local traffic to speak of. I doubt Irving has more than a lukewarm interest, if even that.

gpp111 wrote:...the property is literally radioactive.

Are you sure about that? Figuratively radioactive, yes... but literally?

News video from WMTW-TV:

http://www.youtube.com/watch?v=1QTmIgVj8N8" onclick="window.open(this.href);return false;

Per CBC Ottawa: MM&A have received an provisional extension on 8/16/13 to operate trains in Canada until Oct 1st. The railroad has to prove it can pay the insurance due by Aug. 23 or its operating authority will be canceled immediately.

Has any cleanup taken place? any of the trackage repaired?

CTV news has reported the MMA will be put up for sale.

We are pleased with the CTA's action, which will avoid a very disruptive shutdown of vital freight services at on-line communities and further layoff of employees. This will give us time to work out a longer-term solution. Ultimately the railway will be sold for the benefit of the creditors, and it is worth considerably more as a "going concern" than if it were to be shut down.

Read more: http://www.ctvnews.ca/canada/mma-chief- ... z2cNhH65XO" onclick="window.open(this.href);return false;

Irving looking at MMA?:

http://www.cbc.ca/news/business/story/2 ... -sale.html

Irving subsidiary might buy insolvent Montreal, Maine and Atlantic railway operations:

http://business.financialpost.com/2013/ ... perations/" onclick="window.open(this.href);return false;