• CSX to acquire Pan Am Railways

  • Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.
Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.

Moderator: MEC407

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  by newpylong
 
If by that you mean operating agreements that favor the workers more than the carrier, that would be foolish. CSXs craft agreements are far more generous to the carrier than ST's. Furthermore, leasing an entire Class I to a small New England carrier is not feasible like what GTI did in '86.
  by jamoldover
 
Roscoe P. Coaltrain wrote: Mon Nov 30, 2020 7:19 pm Will CSX use this to Springfield Terminalize the rest of it's property?
I'm going to agree with newpylong on this - if CSX were looking to do something like that, they already would have (in previous acquisitions or union negotiations).

I also suspect that this (the CSX announcement) isn't the end of the story yet. I think we're likely to see some more developments, including possibly a breakup of the current PAR system (no, I don't have any inside information, but there are a lot of marginal lines currently owned/operated by PAR that I can't see CSX wanting to hang on to).
  by F74265A
 
On the PAR side of the house, there are few marginal lines left, I can see the northern above Chelmsford leased to vrs, but that’s about it.
  by newpylong
 
Possibly the Brunswick branch too but that maintenance is free money.
  by F74265A
 
I’ll add that csx still owns (at least maintains since I am not sure if the right of way was sold to the state) and operates the Fitchburg secondary so they have some tolerance for operating light density branches for long periods
  by Shortline614
 
Cosakita18 wrote: Mon Nov 30, 2020 6:54 pm NS Responds:
NS response has tells me that they won't try and the oppose this transaction, and they will take whatever concessions CSX and the SRB hand them. They've given up before it even truly begins... This is the same railroad that nearly fought to the death over Conrail when Chessie came knocking up north in the late 90s.
  by John_Perkowski
 
From Trains Magazine
https://trn.trains.com/news/news-wire/2 ... m-railways

Brief, fair use quote:
“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,” CSX CEO Jim Foote said today in a statement announcing the deal. “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.”[/quote/]
  by CRail
 
newpylong wrote: Mon Nov 30, 2020 7:23 pm If by that you mean operating agreements that favor the workers more than the carrier, that would be foolish. CSXs craft agreements are far more generous to the carrier than ST's.
Huh? The whole purpose of the entire outfit being operated by an abandoned short line is for weaker labor rules. I agree that an outfit like CSX wouldn’t even consider a stunt like that but it’s certainly not because the ST model is too labor friendly.
  by newpylong
 
Re-read what I wrote.

And yes, take it from someone who's worked there and have several close contacts on Class Is, the ST's rules are more favorable to labor, but not as favorable as the predecessor agreements (hence the leasing to ST).
  by Gilbert B Norman
 
First, Col. Perkowski and/or Mr. Maine Central, thank you for re-titling this topic to best reflect the apparent "done deal". My $2 on Topper is now in the trash.

I remain astounded the lack of coverage this "groundbreaking" event has received in major financial media. Both Bloomberg and The Journal have copied the CSX Press Release at their sites. The Times, nada. TRAINS and Railway Age? The Press Release and a few scant comments. The release came in time before the newsday closed, yet none of these newssources assigned a staff reporter to "dig".

But maybe tomorrow.

I consider this acquisition "groundbreaking" in that the STB went to the lengths they did to ensure balanced competitive rail during the '90's merger movement, but in this instance, they have thus far "not". True, the SOO Line through the CP-M, represents some competition for the paper products originating in Maine, but their line only feeds traffic to Canada and parent CP. While CP could give any such traffic consigned to USA Midwest destinations back to the SOO at Detroit through their CRSA interchange privileges there (and their apparently "strong" trackage rights over the NS), the routing is circuitous to say the least when compared with Chessie or Topper.

The only way that balanced competition could be achieved within the region would have been an arrangement such as Conrail Shared Assets represents. Maybe the Surf Board concluded "not worth it". After all, Northern New England is "uh, not exactly" New York, Philadelphia, or Detroit with regards to rail traffic (folks around here from "up that way", please accept my apology).

Traffic from the Port of Saint John? well, no US rail regulatory agency is empowered to force its opening to any US road. Possibly JD Irving, who seems to own most of the industry in town, is happy to give their traffic to the circuitously routed CN and so far as fixing up their rinky dink Short Lines into Maine, FRA Class 2 does just fine to handle our timber. After all if it "spills" so what. Just put it back on the cars - no OS&D to worry about.

Trying to implement the Springfield Terminal Labor Agreements beyond where they are in force today? Chessie could be looking at a national strike that could wipe out any potential savings within an hour. Besides, Mr. Newpy, who has "pounded the ground", notes that some provisions of the ST Agreement are more labor favorable than are the National BLE-UTU (or whoops, BLET-SMART) counterparts.

Pan Am Southern? will Topper just walk away from the inferior routing with FRA Class 2 and a clearance restricted tunnel that could cave in again, or will he seek a CRSA arrangement to the traffic sources that will put some "oats in his bin"?

This now forty years removed from the industry residing in the Midwest (and fifty years removed from CT residency) is watching these developments as they move forth. But this 79yo enquiring mind still wants to know.
Last edited by Gilbert B Norman on Tue Dec 01, 2020 9:40 am, edited 1 time in total.
  by F74265A
 
As for the lack of press coverage, assuming rumored sale price of 700m, by today’s big business standards, this is a tiny, inconsequential transaction from a financial point of view. Further, it involves property mostly in rural to very rural New England. the media elite in NY will pay no attention. To them, Maine is for coastal vacation homes
Last edited by MEC407 on Tue Dec 01, 2020 10:04 am, edited 1 time in total. Reason: UNNECESSARY AND EXTREMELY EXCESSIVE QUOTING
  by ccutler
 
At $700MM Fink is getting a great deal, and he will probably be able to report capital gains using the 2020 tax code and not the much higher 2021 expected tax code. CSX is clearly paying on an expectation of traffic growth.
  by J.D. Lang
 
It will be interesting to see what NS will do now. I’m sure they will point out they’re anti competitive grievances again when the surf board takes this up along with Mass. Dot’s complaints about keeping balance in rail access. They have invested quite a bit in the D&H when they purchased that in order to compete for NE traffic and they did try to make the Patriot corridor work. They’re obsession now with PSR and OR makes me wonder if they will just walk away or try to work out some kind of asset sharing through the surf board.

Anyway I think this is good news for rail freight in NE and I’m sure there will be plenty of support from rail shippers/receivers. Having a class I’s capital resources to fix up Pan Am’s deteriorated infrastructure bodes well for the future. It's also hearting to see a US class I coming out of the operational and cutback part of PSR and finally look to grow the business. So the first card has finally been laid on the table, let’s see what the other players have in their hand. Grab the popcorn and stay tuned.
  by newpylong
 
NS may take a hard look in the mirror and realize they may end up in a better position long term if they acquiesce.

Billerica is likely going to go away in short order, so a mix up of dispatching will likely need to occur. PAS could join the D&H in Atlanta as a concession.
They may also realize their partner is more willing to invest in the infrastructure instead of reaching their hands out constantly.

Or they could back out entirely, or attempt to purchase the whole thing entirely.

It will be interesting.
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