AUGUSTA -- Scrap steel from the former Statler Tissue mill site is riding the rails to Quebec.

The industrial site, most recently operated as Augusta Tissue, was seized by the city earlier this year for nonpayment of taxes. The city contracted with Costello Dismantling to have the buildings on the site demolished and the materials removed.

Train tracks once used for the mill are now carrying away what's left of it.

"We've got a contract with a steel mill up in Quebec, and we're hauling scrap directly to them on the rail line that used to be the main supply line for the mill when it was in operation," said Michael Costello, project manager for Massachusetts-based Costello Dismantling.

Pan Am Railways is hauling the material.

The rail line through the mill, and north of Augusta, is still active. OneSteel Recycling, which is just south of the mill site, occasionally ships out scrap on the line.

Costello said hauling by rail is somewhat cheaper than by truck.

"You can fit a lot more per rail car than you can per truck," he said.

"It works out to a little more than three truck's worth per rail car. It ends up saving in freight costs. Not a huge amount, but some. We've done it before on jobs where it is convenient. It usually works out well."

The steel will be melted down and reused.

Costello said they've shipped out about 16 railcar loads so far, and expect to ship a total of 30 to 40.

The last remaining building on the former Statler site came down last month.

Some demolition debris from the site was taken to a former sludge dump on Church Hill Road previously owned by the mill owners, where it was be used to help fill and cap the dump, according to City Manager William Bridgeo.

Costello said work at the mill site should wrap up shortly, though he didn't have a firm date.

Ultimately, the city would like to sell the 17-acre property, which had been abandoned for several years, to someone who would redevelop it.

Keith Edwards -- 621-5647

kedwards@centralmaine.com