The condition of two short railroad lines in Maine has been raised as a potential issue in a company’s plans to lease and reopen lines in Augusta and Bucksport from rail giant CSX.
The two branches, one connecting Augusta to Waterville and the other running between Bucksport and Bangor, have been dormant for years. They’re now owned by CSX, which acquired Pan Am Railways and its hundreds of miles of Maine track four years ago.
A federal review of CSX’s plan to lease the two lines to TransloadX-RR, owned by the operators of regional freight operations company TransloadX, was paused last month after several parties filed concerns including track investment and labor protections.
Filings submitted this month to the federal Surface Transportation Board, which regulates railroads, provide new details about the alleged condition of the two lines and the investment it may take to get them back in operation. They also show how the closure of the Augusta line has impacted businesses — which support Transload’s lease bid — since CSX stopped running it more than two years ago.
Critics also question whether CSX is upholding the terms of its 2022 acquisition of Pan Am, which was generally expected to bring money for upgrades and efficiency, opening new marketing opportunities in Maine. Freight traffic has been increasing in the state within the last five years and appears poised to continue growing, according to the state.
CSX has put $100 million into the former Pan Am network, a spokesperson said Tuesday in response to a question about Maine investments. Pan Am’s lines spread throughout New England, but the spokesperson did not specify how much of that sum has been invested in Maine.
CSX also recently moved 21 jobs out of Maine from its Waterville shop, which unions in January blasted as “pure greed.”
It stopped operating the Augusta branch and later put those operations out to bid along with the Bucksport branch, which had been mostly unused for years. Those two lines saw “limited and inconsistent demand,” according to Austin Staton, director of media relations for CSX.
But now TransloadX-RR wants to lease and reopen them. In March, it filed a request with the federal board for an exemption from detailed review.
That would have put the lease into effect a month ago, but the review was delayed by the board so TransloadX-RR could respond to allegations. Filings by two unions, a competing railroad, and a former rail journalist asked the board for various levels of review first.
Chalmers Hardenbergh, the journalist, alleged TransloadX may be seeking the approval to gain classification as a railroad and thereby duck local oversight at a CSX-owned facility where it transfers freight in Framingham, Massachusetts, where a city leader said the operation was unpermitted. He also pointed out past court findings against TransloadX’s owners, Michael Milanoski and John DeWaele, from a case around a railroad sale in Massachusetts.
The company responded that his filings were aimed at manufacturing controversy and variously inaccurate or nonsensical without showing grounds to disqualify an exemption. DeWaele previously suggested filings were influenced by a “competing party.”
TransloadX-RR included letters from other businesses that support the proposal and the owners’ experience and character, along with minutes from a Framingham meeting indicating it didn’t need permits.
The company also argued the track condition concerns weren’t relevant to an exemption decision.
“TransloadX-RR adds only that any fears that the leased track will not be adequately maintained and operated safely are unfounded,” it said.
Meanwhile, customers on the Augusta branch have struggled without service, according to letters of support included in TransloadX-RR’s response. They include a scrap metal processor and Phoenix Feeds, which said it provides feed for more than 80% of Maine dairy cows.
The Bucksport branch has been quieter since the Verso paper mill at its southern end closed in 2014, though Transload has said it is working to develop customers on both lines. Republic Services, a waste and recycling collection company, said in a letter of support it would benefit from service on the Bucksport branch.
But both lines haven’t been maintained and are in unsafe condition, a union and another Maine railroad allege.
TransloadX-RR did not respond to a request for comment about its plans to repair the lines.
Representatives of the Brotherhood of Railroad Signalmen argued in a May 6 filing that on-the-ground observations contradict CSX ‘s claims that the two lines can provide safe and efficient service.
According to the union, improvement on the Augusta branch appears mostly limited to repairs from a derailment. It is not clear from documents submitted to the board how recently this derailment occurred.
Only part of the Bucksport branch could be considered “barely serviceable at best,” the union said. Beyond that are fallen trees, washouts, blocked tracks, rails that have been turned and disconnected and paved-over highway crossings.
Other concerns raised about signals and crossings include components that have been removed or gone missing, and unmaintained circuitry and warning systems.
That makes it unsafe and unlawful to operate, according to the union, and many crossings wouldn’t pass necessary inspection and testing. It asked the board to verify conditions there for the safety of railroad employees and the traveling public.
The union also questions whether millions of dollars in federal investments in upgrades that included the Waterville area would be maintained with clear accountability.
CSX is trying to divest parts of the system while saying no specific commitments were made for the lines, despite the use of federal funds, the union alleges.
“The record shows a pattern of deferred maintenance, declining conditions, and removal of key components, not continued investment,” the union wrote. “That does not align with the intent of the CRISI program or the commitments made during the Pan Am acquisition.”
CSX has countered in filings that it didn’t specifically commit to work on the Augusta or Bucksport branches, but made bridge investments on the Augusta line, and spot tie and surfacing improvements on both.
Recent work on former Pan Am lines included replacing more than 120,000 ties, upgrading its South Portland yard, installing safety control systems for trains and improvements to track infrastructure, crossings and signals, according to Staton.
“CSX remains committed to meeting its obligations associated with the Pan Am acquisition and continues to invest in the region,” he said Tuesday.
The signalmen’s union also alleged the lease proposal sets a precedent to remove protected work from the union agreement without bargaining.
“If transactions of this nature are allowed to proceed without scrutiny, they invite a broader disassembly of labor protections across the industry with one leased segment at a time and without transparency, accountability, or meaningful review,” it said.
CSX countered in filings that labor protection conditions from the merger don’t apply to future line leases, and the board isn’t the venue to hear a dispute.
Any lease agreement would require TransloadX-RR to give priority hiring consideration to maintenance employees who were working on the lines being leased and take a neutral stance on any union organizing effort among them, according to filings.
The federal board hasn’t set a date for its decision on the exemption.
