CSX Acquisition of Pan Am Railways

Gilbert B Norman wrote: ↑Sat Oct 21, 2023 5:58 am ...but didn't Timmy keep the Pan Am bling marketing rights and merge it into one of his other companies?

I think most of us assumed he would, but he sold the whole kit and caboodle to CSX.

SOOO it's "Buy some PA bling to keep Chessie on her Fancy Feast"

PanAm.com points to panambrands.com https://www.panambrands.com/contact

https://www.facebook.com/PanAmBrands/ab ... basic_info
Has a New Hampshire mobile phone number! Someone who works there lost their cat Also, apparently panamofficial on facebook is a mexican clothing brand

https://www.instagram.com/panamofficial/

The good old circular definition!

The official Instagram account for Pan American World Airways, LLC. Pan Am is a registered trademark of Pan American World Airways, LLC.

With everything "on the plate" regarding integrating the cultures into what Mr. Hinrichs wants, I have to wonder if the PAR (railroad) acquisition is really THE front matter presently being addressed at 500 Water. To me it seems that away from where the several passenger train agencies operating trains over the lines, Chessie simply acquired a pile of junk - rails and equipment. What she bought was the potential to serve rail using industries with better service in anticipation that better service will attract "more of same"

The Pan Am "bling"? Whatever happens to it? Who cares.

If you talk to any of the CSXT middle level managers in the region they all pretty much say the same thing, that while Jacksonville certainly did their due diligence prior to the sale, they continue to be surprised at just bad the physical plant is. Outside of the Portland Division, they described the condition of the entire railroad as "Industrial Track" or worse conditions. They are spending more earlier on than they intended to just to operate with any semblance of reliability. This extends to the working conditions such as yard offices that have been described as "third world". The flip side to this is they are extremely bullish on both present and future traffic potential and that is why they are committed to full scale integration and marketing with the rest of the system (when the physical plant is ready).

It appears we are on the same page regarding the condition of the property, Mr. Newpy.

Portland Div is route of The Downeaster, so the NNEPRA, i.e., the taxpayers, spent the needed $$$ to have FRA Class 4 - normally what Amtrak and other agencies expect.

It just seems like from what I've learned, the Maine Central East of wherever the Amtrak end-of-track may be, is the worst of it. That is where I thought Chessie saw most of the traffic potential coming from.

And finally, due diligence, let's hope that was a bit more than the boys and girls taking a joyride on Timmy's "State of Maine Express".

newpylong wrote: ↑Tue Oct 24, 2023 7:12 am If you talk to any of the CSXT middle level managers in the region they all pretty much say the same thing, that while Jacksonville certainly did their due diligence prior to the sale, they continue to be surprised at just bad the physical plant is. Outside of the Portland Division, they described the condition of the entire railroad as "Industrial Track" or worse conditions. They are spending more earlier on than they intended to just to operate with any semblance of reliability. This extends to the working conditions such as yard offices that have been described as "third world". The flip side to this is they are extremely bullish on both present and future traffic potential and that is why they are committed to full scale integration and marketing with the rest of the system (when the physical plant is ready).

Since CSX took over District 1 has lost three major customers (The Jay Mill, Old Town Mill, and Dragon Cement) It's hard to see how they can be so bullish about growth especially on the eastern end of the system.

Aside from Irving traffic and potential intermodal from SJ, what ARE the avenues for traffic growth? Transloading? Domestic intermodal? More volume from existing customers?

Most of the customers who had remained as rail users east of Portland were ones who really didn't have much alternative because of what they were shipping. That includes the paper mills and bulk products customers. Those aren't usually high-profit customers, though - lower product value and lower time sensitivity tends to mean lower rates that can be charged. CSX sees huge possibilities in all of the customers who abandoned rail during the bad times who can potentially be tempted back by a much improved shipping product made possible by actual physical plant investment.

Between the Irving gateway and its massive prospects for growth, there is still a lot of meat on the bone for Pan Am propoer. Even in Mass and NH which really have always felt neglected, but for sure Maine with first hand having sent a lot of trucks out that should have been railcars. Right now the cyclical nature of markets has us in a valley, but when things bounce back there will be good possibilities. I'm also told the Transload at Rigby is for trash, but not sure the validity of that. Lastly, Keag line reopening got pushed back to Dec 1st.

Cosakita18 wrote: ↑Tue Oct 24, 2023 1:09 pm Since CSX took over District 1 has lost three major customers (The Jay Mill, Old Town Mill, and Dragon Cement) It's hard to see how they can be so bullish about growth especially on the eastern end of the system.

Aside from Irving traffic and potential intermodal from SJ, what ARE the avenues for traffic growth? Transloading? Domestic intermodal? More volume from existing customers?

You'd have to ask them that question, but points of clarification: Jay Mill closed only 2 months into CSX ownership, hand writing was on the wall with that one and traffic to/from Rumford has picked up with better service. Old Town is a "temporary extended closure", who knows if that will be permanent. 8 carloads every few days for Dragon does not constitute a major customer. Again, you'd need to ask them what their strategic plan is long term but I am fairly sure it revolves around organic growth with the assumed loss of x amount of carloads due to unforeseen circumstances. Customers aren't forever.

Closure of dragon may result in other business. Concrete has to come from somewhere.

Dragon is moving 15-20 cars a week at best, for an end customer not even located in New England. Concrete will probably come from the same sources already in operation.

Messrs. NHV and Newpy, what kind of line haul from those Dragon Cement cars is Chessie getting considering her entire system?

If she is getting short hauled, a hiss and raised claw to them.

Now if they are consigned "Local", i.e. all on her road to destination at the southern or western end, she will surely invite the shipper to sit at her table and share some Fancy Feast.

The issue with the Dragon Cement traffic isn't that it's being diverted to truck - it's that the plant is being closed.

the old thomaston cement plant has died many times in my lifetime. and it has also come back to life many times during my existence. i have to assume they still have cement over there so that's not the problem. if csx proves to be a more reliable mover of cars and mike smith does a few intense marketing moves, which i'm sure he will, the situation for that plant very well might look brighter for a new operator this time around.