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On Tuesday, the state of Maine announced it reached an agreement to purchase 233 miles of track in Aroostook and Penobscot counties from the Montreal, Maine and Atlantic Railway Ltd. (MMA). The railroad had planned to abandon the lines and the state sought to preserve rail service for shippers along the route.

The agreement, which concludes more than a year of negotiations between the parties, calls for Maine to purchase a line from Millinocket to Madawaska and branch lines to Caribou, Presque Isle, Easton, Houlton and Limestone for $20.1 million in cash. The state also will receive overhead traffic rights to move freight over certain lines MMA will retain, enabling a new operator to connect with CN at Van Buren and the Eastern Maine Railway in Brownville Junction.

“Improved rail connections are critical to Maine’s economy, and this line particularly will help to protect thousands of jobs and major employers in Aroostook and Penobscot counties,” said Maine Gov. John Baldacci in a prepared statement.

After the sale is finalized, the Maine Department of Transportation will issue a request for proposals to solicit a private rail operator for the lines. The state will receive a $10.5 million TIGER II grant to help fund track improvements on the lines.