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Floods, economy force rail cutbacks

BANGOR - Montreal, Maine & Atlantic Railway announced Thursday it has trimmed its train service and furloughed 33 employees effective the end of June.

"The current economy has caused a downturn in paper, lumber and other forest products shipments which, along with extraordinary snow removal and spring flooding expenses, have forced us to make adjustments to keep the railroad operating efficiently and still provide reliable service to our customers," said Bob Grindrod, MMA's president.

Grindrod said Katahdin Paper's recent announcement that it plans to close its Millinocket mill, one of two operated by the company, on July 28 has contributed to the railroad's need to cut costs. "Paper from ...

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