• 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 shadyjay
 
F74265A wrote: Thu Jun 17, 2021 10:43 am I expect csx to be interested in the pan am emd 4 axle locos to the extent they keep any. The pan am 4 axle GEs were already disposed of once by csx so I would be shocked if they want them back
Stranger things have happened... CP got their SD40Fs (?) (the "red barns") when it bought CM&Q and has kept them in service so far since the transaction took place last year.
  by CN9634
 
For what it's worth, and probably not surprising, I'm hearing that CSX power will be returning to run through on POAY/AYPO shortly. Typically I'd post this under a separate locomotive relegated thread but given the situation I think it makes sense to list here. Guess they aren't so worried about HPH anymore :wink:

Further power notes, the 600s are stored at Rigby (unless one or two have been reactivated recently), so I wonder if they will sideline more power or just not fix anything that goes down GE 6-axle wise.
  by F74265A
 
R&P sent out an email today with an article about the state of thetransaction. It reads as if it was written by VRS
  by roberttosh
 
"With CSX's strategic objective to complete a northeast land bridge between Port of Saint John, NB and the interior"

What is that quote from the article insinuating, that CSX's ultimate goal in buying Pan Am is to set up an intermodal corridor from St J to the midwest? From what I've been told, St J intermodal is barely if at all on their radar screen and is really just an afterthought compared to all the carload opportunities.
  by Eli17zn6
 
I think CSX is more interested in expanding its intermodal network opportunities in the state of Maine especially in Southern Maine. Makes sense to to build an intermodal yard up in Rigby Yard which will help Worcester with its current space constraints. Its a wait and see basis now what CSX will do up in Maine.
  by roberttosh
 
Here's my take on where CSX's interest lies with the Pan Am acquisition.

(1) Forest products
(2) Energy







(3) Everything else
  by gokeefe
 
Anything that helps their intermodal lanes should be at the top of the list. That is major business for them in New England.

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  by roberttosh
 
So you think that if they had to chose between all the paper/pulp/lumber mill traffic or a potential intermodal site, they would chose the latter? I guess we'll have to agree to disagree on that one.
  by eolesen
 
Paper and pulpwood are mostly a regional product and under 200 miles, no?

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  by gokeefe
 
It's not so much a case of one or the other as much as a case of volumes. Paper traffic is down, Kimber of course is probably up quite a bit. But intermodal is simply a monster for them.

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  by l008com
 
Let me be super nieve here and suggest that maybe they looked at the whole network as something small enough for them to consume, but also a network that is filled with underserved business that they could potentially drum up. That's totally a rail-fan point of view for sure, but that doesn't necessarily mean it's not true.
  by NYC27
 
roberttosh wrote: Sat Jun 19, 2021 5:23 pm Here's my take on where CSX's interest lies with the Pan Am acquisition.

(1) Forest products
(2) Energy
(3) Everything else
This, plus the theory going around the other Class Is that CSX is buying PAR simply to offset the huge Capital gains they made on the Virginia deal. This is why they have conceded on so many points to get this deal done. BTW The VTR side would be taken care of if PAS’s other owner would go along with what CSX wants to offer.

It also explains why no concrete plans for PAR have emerged. There are none at the moment, they are making it up as they go along.
  by roberttosh
 
gokeefe wrote: Sat Jun 19, 2021 9:06 pm It's not so much a case of one or the other as much as a case of volumes. Paper traffic is down, Kimber of course is probably up quite a bit. But intermodal is simply a monster for them.

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Paper traffic may not be what it was 20-30 years ago, but I would say that it is still substantial and at minimum has stabilized with the shift away from printing paper to packaging and other growth markets. In addition, the pulp business is very strong, with ND Paper, who is clearly in it for the long term, leading the way. The 4 mills that are left all recently expanded or are planning to expand production with only Jay being down due to the digester explosion, though they too were on an upward trajectory prior to that incident.

I'm not saying Intermodal isn't in their plans, but I'm pretty sure it isn't their main focus moving forward. If they are so desperate for capacity, they could have likely spent a fraction of the $700M they are laying out for Pan Am to buy up additional property for container storage adjacent to the existing Worcester ramp.
  by CN9634
 
They’d have to buy up a lot of property, then get permitting and potentially EIS work done. That’s suggesting you could even feasibly do it, how many homes would you need to displace, how many are on the same side of the road as the ramp and within the same elevation? Not many. Expanding in Maine is a no-brainer, there is already a book of business and you solve a big problem. CSX also gets a great chunk of manifest and connection to NBSR, so surely intermodal isn’t the only focus but it’s a very compelling reason amongst others.
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