CSX Acquisition of Pan Am Railways

If I were CP I would be a lot more concerned about the potential diversion of carload traffic off of the Irving roads to CSX (ST) than intermodal.

Look like CSX:

https://www.csx.com/index.cfm/about-us/ ... w-england/

CSX to Acquire Pan Am Railways in New England
JACKSONVILLE, Fla. – November 30, 2020 - CSX Corp. (NASDAQ: CSX) today announced that it has signed a definitive agreement to acquire New England’s Pan Am Railways, Inc. (“Pan Am”), whose rail carrier subsidiaries comprise North America’s largest regional railroad.

Headquartered in North Billerica, Massachusetts, Pan Am owns and operates a highly integrated, nearly 1,200-mile rail network and has a partial interest in the more than 600-mile Pan Am Southern system. Pan Am’s network across New England has access to multiple ports and large-scale commodity producers. The transaction will expand CSX’s reach in Connecticut, New York and Massachusetts while adding Vermont, New Hampshire and Maine to its existing 23-state network.

The transaction will provide significant benefits to shippers and local communities as CSX integrates Pan Am into its best-in-class network. CSX made nearly $1.5 billion in infrastructure capital expenditures in its network in 2019, supporting economic growth and ensuring the safety and efficiency of the supply chain.

James M. Foote, president and chief executive officer of CSX said: “In Pan Am, CSX gains a strong regional rail network in one of the most densely populated markets in the U.S., creating new efficiencies and market opportunities for customers as we continue to grow. We intend to bring CSX’s customer-centric focus and industry-leading operating model to shippers and industries served by Pan Am. We look forward to integrating Pan Am into CSX, with substantial benefits to the rail-served industries of the Northeast, and to working in partnership with connecting railroads to provide exceptional supply chain solutions to New England and beyond.”

David A. Fink, president of Pan Am Railways said: “Pan Am is pleased to reach this agreement with CSX, a North American leader in rail-based freight transportation. This is great news for New England shippers and the national freight network overall.”

Terms of the transaction were not disclosed. The transaction is subject to regulatory review and approval by the Surface Transportation Board.

Goldman Sachs & Co. LLC is acting as financial advisor and Davis Polk & Wardwell LLP is acting as legal advisor to CSX in connection with the transaction.

Wow, quick moving news. I wonder when CovId rescinds if the the B&A will become a primary passenger route with a freight franchise like G&W operating on it? Hard to believe Conrail used to send 18-20 freights a day that way in 1990’s. I don’t think anybody really saw this coming it almost seemed CSX wanted out of New England past Selkirk.

Dear Valued CSX Customer,

We’re pleased to inform you that we have reached an agreement to acquire Pan Am Railways, extending the CSX rail network in New England and providing potential new market opportunities for you and other existing CSX customers. This end-to-end acquisition will increase the competitiveness of CSX’s rail service with trucks by expanding single-line rail service across a larger CSX network.

Pan Am is North America’s largest regional railroad, serving customers in six states. The acquisition would expand our network in Connecticut, New York and Massachusetts, while providing our customers with new access to markets in Vermont, New Hampshire and Maine.

The CSX Sales and Marketing team is looking forward to exploring new supply chain solutions with you and implementing those solutions once the Surface Transportation Board approves the acquisition, as expected in 2021. We will keep you informed as this transaction progresses, and look forward to connecting with you about the potential growth opportunities made possible by the Pan Am acquisition.


Mark Wallace
Executive Vice President, Sales and Marketing

Still hard to believe but incredibly good news. Wonder what NS is going to do now?

Well, that cat is out of the bag. Wondering how everyone else will react?

Still trying to process this news. It was leaked beforehand but even then! Unreal...

Query what volume of the intermodal dropped at Worcester was drayed to Maine? This should all move to rail in coming years under csx ownership

I would think this will wind up in court. NS dumped a lot of money to upgrade Mechanicville NY to Ayer Ma . I believe it was somewhere north of 700 Million and I doubt they will go quietly . I do a fair amount of intermodal business for work with CSX thru Worcester and Springfield MA and I do not see a lot of change but who knows with the advent of precision scheduling. Ayer Ma intermodal is a lot of EMP, JB Hunt and international traffic and there is not enough capacity in Worcester for expansion

F74265A wrote: ↑Mon Nov 30, 2020 5:12 pm Query what volume of the intermodal dropped at Worcester was drayed to Maine? This should all move to rail in coming years under csx ownership

Can't give you an actual number but based on my nearly daily drives on I-95 between Portland and Saco, I see PLENTY of 53's domestics from JB Hunt, UMAX, Schneider and CSX being drayed to/from Worcester.

I think domestic intermodal is a piece of the puzzle, but not nearly as much as the 40 footers coming out of Saint John.

Should be interesting to hear a Jacksonville dispatcher giving 23k authority?!

Seriously though, this isn’t good news for the PanAm front office workers, dispatch & others. Hope they land on their feet when the dust settles.

It’ll sure be interesting to see how this all plays out.

I think CSX’s plan is to let the STB sort it out, slap a condition that NS or an interested third party buys the 50% stake in PAS to settle competitive interests. If NS says no (surely they’ve already had the opportunity so we can assume this is so) then I predict GWI swoops in to lay claim, and status quo for NS resumes less any beneficial traffic they current take out of District 1 or 2

NS Responds:

"In 2009 Pan Am Railways and Norfolk Southern negotiated a pro-competitive joint venture that resulted in the creation of Pan Am Southern,” NS said in a statement. “That transaction was approved by the Surface Transportation Board in large part because the joint venture provided competition in the marketplace. Over the last decade, Norfolk Southern has ensured the success of that venture, and remains committed to it today. We now understand that CSX is poised to acquire Pan Am Railways. We are carefully considering the effects of this transaction, especially any competitive harm to the marketplace. We remain committed to working with any potential Pan Am Railways purchaser, the STB, and any other applicable regulatory agencies to protect shippers, commuters and rail passengers throughout the New England market.”

I particularly enjoy the line:
" Over the last decade, Norfolk Southern has ensured the success of that venture"

Translation: So, Long, Farewell, Auf Wiedersehen, goodbye Pan Am"

Will CSX use this to Springfield Terminalize the rest of it's property?