The Pipe Train
Railroads have historically preferred not to have to deal with pipelines, for the pipeline offers bulk commodity transportation over land which is difficult to beat. Recently, however, Guilford Rail took advantage of an opportunity to “join” the competition by handling more than 700 carloads of large diameter pipe which is being used to construct a natural gas pipeline from Canada to New England.
Natural gas has become a major player in the industrial energy business and, especially, in the generation of electricity, now that fossil fuels have become very expensive and environmentally unpopular and nuclear fuel generators have become technologically unfeasible. The gas pipeline offers to New England consumers, who pay proportionately high energy costs, an opportunity to reduce expenses.
Two phases of this pipeline project resulted in new business for Guilford Rail. The first involved a joint enterprise between Maritimes and Northeast Pipe Line and Portland Natural Gas Transportation System, covering the distance between Dracut, MA and Westbrook, ME, extending more than 100 miles. Pipe was handled by rail to Rigby Yard in South Portland, ME, where an unloading and storage facility was leased from Guilford Rail. The second phase involved only Portland Natural Gas Transmission System and provided pipe for the line to be constructed from the Canadian border to Westbrook, ME, a distance of approximately 142 miles. Yards for laydown of pipe moved in by rail were established at Westbrook and Dixfield, ME.
Additional pipe will be required in 1999 to complete the project. Guilford Rail should be in an excellent position to continue participating in pipe transportation.