Facing the loss of the port of Eastport's only customer, the port authority is scrambling to put together the pieces of a puzzle for shipping new cargoes. Port officials are working with a possible shipper of bulk cargo, have located funding for the engineering for a bulk conveyor system, and are moving forward to bring a rail line close to the port.

At the April 21 meeting of the port authority's board of directors, Port Director Chris Gardner said that the port authority is working with a company located in the area to ship wood chips through the port for markets in Europe. "I think this is the best lead of a new commodity," says Gardner, who believes the probability of the shipments is very high. "We hope to finalize it in the coming weeks."

The possibility of shipping the bulk cargo demonstrates the need for a conveyor system, Gardner pointed out, and the port authority is moving ahead with developing a conveyor. "The bulk market is our best possibility now," he said.

The port authority is requesting funding for a bulk conveyor system through a state transportation bond issue that probably will go out to referendum in November. Up to $5 million might be needed, but the funding amount may be reduced. Civil Engineering Services (CES) has agreed to do the preliminary engineering for the conveyor system at a cost of $20,000. At the meeting, John Henshaw, director of the Maine Port Authority, reported that the MPA will contribute $10,000 toward that cost, and the Eastport Port Authority board voted to appropriate the remaining $10,000.

Along with a bulk conveyor system, the return of the rail line to Washington County "is a possibility now," said Gardner. "It's probably a necessary and needed step for advancing the future of the port."

The federal economic stimulus package could have funding for bringing the rail line back, he said. He pointed out that the shutdown of the Domtar Corporation pulp mill in Baileyville and the resulting unemployment has placed a focus on helping Washington County. "The time may be now to act on this."

The port director has been working with U.S. Senators Olympia Snowe and Susan Collins and Congressman Mike Michaud, Governor John Baldacci and the Washington County legislative delegation, all of whom have pledged their support for helping return a rail line to the county. The Washington County commissioners have agreed to be the lead applicant on a request to the federal Economic Development Administration (EDA) to provide funding for engineering for the rail project. The estimated engineering cost is $100,000.

To access federal stimulus funding, the engineering would need to be completed this summer. The Maine Department of Transportation would make the request for the state, and the governor has agreed to make that request, Gardner said. The deadline for applying for the federal stimulus funding is November 18.

The rail line would follow the existing line from the Louisiana-Pacific mill in Baileyville to Calais, which is still in use, and then the unused line from Calais to Ayers Junction in Pembroke. Rail would then have to be laid along the rail bed from Ayers Junction to Perry, using the existing rights-of-way. The location of an intermodal facility for loading cargo from rail to trucks will be determined in part by engineering studies of the topography, but Gardner said they would try to get the rail as close as possible to the port. While avoiding a crossing of Route 1, they will aim to get the rail line near the junction of Route 1 and Route 190 in Perry, where a "freight village" for loading and unloading rail cars would be located. Replacing about 17 miles of old track and laying 10 miles of new track could cost around $25 million, Gardner estimates.

In Calais, the line that is operated by Pan Am Railways crosses into Canada and connects with the New Brunswick Southern line, before coming back into the U.S. in Vanceboro.

John Henshaw noted that some study needs to be done on markets that would be served by a rail line, and Gardner said that Federal Marine Terminals would help with marketing. He also noted that a federal Canadian-American study completed in 2007 pointed to the importance of shipping in achieving regional efficiencies for transporting products.

The rail line could also offer an opportunity to other businesses, but the port would be the anchor for moving cargo by rail. "This is not a Washington County project or an Eastport project. This is a project for the state of Maine," Gardner stated.

Last Domtar shipment

Two ships were loaded at the port with wood pulp this month, and a Star line vessel is scheduled for early May, which will be the last shipment of Domtar pulp, following the idling of the mill on May 5. Gardner said the port is "bracing for an extended closure" of the Domtar pulp mill, and while hoping that the closure will be temporary, he noted that, if it becomes permanent, "just under the surface is the future of the port."

Along with trying to find other shippers, the port authority is working to reduce costs. A $5,000 savings on the insurance premiums will be realized by only purchasing insurance for those days that the port's tugboats are under way.

Wind blade shipment

The port's first shipment of wind blades is scheduled to arrive on April 29 aboard the Jade C. The 108 blades, each 125 feet long, are being shipped from Brazil by General Electric for four wind turbine projects C two in Maine, in Lincoln and Oakfield, one in Nova Scotia and one in Pennsylvania. A second shipment is planned for June.

Because not all of the blades will fit at the Estes Head terminal site, the port authority has been working with the city to use the end of the airport near Deep Cove to store some of the blades, which will be on the ground until sometime in September. The port authority will be making payments to the city for use of the property. Gardner noted that the Moose Island Racing Association property, between the Deep Cove Road and the airport, which had been considered as a laydown area for the blades, would not be usable. The area had been vandalized by people who had used it for mud-running. Gardner said the individuals were caught by the police.

Henshaw noted that the shipment of parts for windmills may be a regular business in the state for the next five to 10 years. If the port demonstrates its ability to handle these shipments, it can help in attracting more shipments if offshore wind farms are developed. Gardner noted that the port, in conjunction with Ocean Renewable Power Company (ORPC), may be interested in playing a role in offshore wind development.

Renewable energy center not funded

In other developments, ORPC was unsuccessful in its application for $3.5 million in funding from the Maine Technology Institute for a renewable energy center at the BASF property at Broad Cove. However, Gardner noted that ORPC is confident that the center can still be established.

Cruise ship visits?

The May visits to Eastport that had been scheduled by Pearl Seas Cruises have been cancelled, and the visits in October may not occur either, because of the uncertainty of the market and because the cruise ship Pearl Mist is still under construction in Halifax. Gardner said that the port authority has ended its planning operations for the visits until more definitive information is received. Payments for any planning have been suspended.