• 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 PBMcGinnis
 
Current Conductors and Engineers will likely be retained in the short term. Like all the freight railroads in New England, labor is at a premium, so they can't cover all the jobs all the time now. If CSX does what they did with Conrail, they will implement new division points and crew points slowly the first full year before making any cuts.

But the shop forces in East Deerfield and Waterville will likely see reductions or closures first since Selkirk is only 150ish miles from central Massachusetts. And nothing can happen until the STB and Courts are satisfied so this could be a year long saga.

I also don't think CSX is worried about letting NS maintain the intermodal and automotive traffic into Ayer via Mechanicville as concessions. CSX already have Worcester and East Brookfield operating at higher volumes now since NS doesn't understand that outbound traffic from New England is a highly competitive truck market and thus intermodal and carload is priced cheap.

But on the other hand, one wonders why NS didnt pull the trigger on PAS the past 11 years. I guess they figured there would never be a threat to their business.
  by MEC407
 
NS should've just purchased the whole damned thing when they had the chance. Lots of folks have been telling them to "$#!T or get off the pot" for years.

A television ad jingle that Mainers will recognize seems appropriate: "I should've bought it, when I saw it, at Marden's!"
  by newpylong
 
PBMcGinnis wrote: Tue Dec 01, 2020 12:07 pm But on the other hand, one wonders why NS didnt pull the trigger on PAS the past 11 years. I guess they figured there would never be a threat to their business.
You called it months ago if I remember correctly. They (NS) have been going about business as usual since 2009, never expecting their arrangement to ever be jeopardized.
  by bostontrainguy
 
Any thoughts from anyone on who would have been better . . . CSX or NS? Interested in your reasoning either way. Thanks.
  by Ridgefielder
 
I wouldn't be too surprised to see NS come in with some other player to buy out CSX's stake in Pan Am Southern. Could be private equity (Fortress?), could be another rail carrier-- maybe CP, maybe Genesee & Wyoming.
  by J.D. Lang
 
Just curious, I know that PAS has access to the yard in Ayer but in the original PAS agreement did PAS have access east of there to the auto yard and Ardent Milling or was that only Pan Am that forwarded the traffic. Just trying to figure out where PAS territory ends.
  by NHV 669
 
CPF 312, Willows east, as it also marks the start of District 3.
  by MEC407
 
Regarding news media coverage or lack thereof:

As of 4pm today, there hasn't been a single word about the CSX-PAR acquisition in any of Maine's newspapers or on any of Maine's TV stations.

Maine Public Radio, which is Maine's NPR affiliate, did mention it briefly on-air today and posted a brief story on their web site at 2pm:

https://www.mainepublic.org/post/offici ... good-maine
Maine Public Radio wrote:Nate Moulton, director of freight and passenger services for the state Transportation Department, says the sale could be good for Maine.

“On the surface it looks very good in that you now have got direct rail, you know, connections, without interchange to many locations up and down the eastern part of the country,” he says.

But Moulton says there are questions to be answered, including how CSX will handle the Amtrak Downeaster passenger trains that use private tracks from Brunswick to the New Hampshire-Massachusetts border.

“We have questions in that regard, making sure that service is protected and continues to run on time and efficiently. So, those are some of the things we need to talk to them about as we get into this process,” he says.
  by Gilbert B Norman
 
J.D. Lang wrote: Tue Dec 01, 2020 10:41 am 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..... 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.
A very insightful look at the whole dilemma by Mr. Lang on the preceding page; thank you, Sir.

For traffic moving to the South, I would think Topper has the advantage over Chessie. He took oats out of his bin to get the D&H Albany (area)-Bingo up to at least FRA Class 3 and maybe even 4. Once he gets to Hagerstown on his own rails, he can handle that traffic anywhere in the Southeast. Possibly Maine milled lumber could be competitive with more local sources for the furniture industry "down there".

By contrast, and maybe my concern is unfounded, while Chessie can get to New York on her own rails (NYC West Shore) and through the terminal with CRSA, I'm at a loss to know how, being that the RDG is now part of NS, she handles traffic to Phila and her own rails. Amtrak will only allow so much freight traffic over the Corridor - and access to their trackage "doesn't come on the cheap". Once on the B&O, she can handle traffic, likewise, anywhere to the Southeast.

Now insofar as E-W through Mass, Chessie has at least Class 3 all the way on the B&A. Now Topper's dilemma will be do I fix up PAS/B&M/Route of the "Flying Yankee" to such extent (Class 3 or higher) and dig out plus fortify Hoosac to handle tri-level auto racks and any container out there (I thank Mr. Cowford for explaining privately to me that not all containers are created equal), seek access to lucrative traffic sources over Chessie's extended claws, and otherwise provide the region with balanced competition - something I thought Surfboard wants; and as Mr. Maine Central immediately notes, is of concern to a Maine Public Radio correspondent.

I like to think "they ain't dumb down there at 1200 Peachtree". I would think if there be an expectation of return, they would take the temporary hit to the Operating Ratio and put the "Gospel According to Saint Elwood" on the shelf instead of the pulpit.
  by roberttosh
 
Not so sure I agree with your assessment of NS having the better route to the South, especially the Southeast (NC, SC, GA & FL). For CSX it's a straight shot to Selkirk where they then have daily trains down their I-95 corridor to Philly and as far south as Waycross, GA. NS would have a tough time beating that service via Deerfield/Binghamton/Enola. The further inland you go, such as to AL, TN, MS, LA the more competitive the NS becomes.
Last edited by roberttosh on Tue Dec 01, 2020 5:14 pm, edited 3 times in total.
  by F74265A
 
Csx has the better route south
Except Howard st tunnel in Baltimore still has clearance restrictions I understand
  by jamoldover
 
Gilbert B Norman wrote: Tue Dec 01, 2020 4:17 pm By contrast, and maybe my concern is unfounded, while Chessie can get to New York on her own rails (NYC West Shore) and through the terminal with CRSA, I'm at a loss to know how, being that the RDG is now part of NS, she handles traffic to Phila and her own rails. Amtrak will only allow so much freight traffic over the Corridor - and access to their trackage "doesn't come on the cheap". Once on the B&O, she can handle traffic, likewise, anywhere to the Southeast.
You've forgotten about CSX's ex-CNJ/B&O line down to Trenton and the Philadelphia area that starts from Bound Brook (at the same junction NS's ex-LV line does). They have no problems getting south from the New York area on their own rails.
  by Red Wing
 
Think of all the savings when half the engines are already in CSX colors! :P

1. But seriously it will be interesting to see if Vermont gets rights down to North Chelmsford or Lowell, Mass Coastal getting everything on the South Shore. WABCO getting the Rumford Branch. Naugatuck getting the Waterbury area.

2. It will be funny seeing CSX delivering back to Chelsea and Everett after they dropped it off to Pan Am.

3. It will be sad to see the wreck train and the OCS disposed of.

4. I wonder if we might see tank cars of Poland Springs water transloaded in Maine to their Framingham bottling plant?
  by markhb
 
Red Wing wrote:3. It will be sad to see the wreck train and the OCS disposed of.
I'm not sure what the wreck train is, but having had a chance at a walkthrough of the OCS when Amtrak opened the Brunswick Extension, I wonder if CSX might not want to keep at least the cars (with or without the Sisters). It certainly seems sufficiently stylish for at least their mid-level executives to my eyes.
  by Red Wing
 
I believe CSX farms out the work of cleaning up a train wreck and Pan Am has their own train to deal with that.
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