• 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 690
 
RIght - you'd think if NS cared that much about PAS, they'd have pressured ST to maintain track speeds of 40 to start with. Those lasted a couple years before slipping back to 25 (which at least they're somewhat decent about maintaining that, usually 10s get bumped back up relatively quickly). The fact that ST was basically allowed to let everything slip down that quickly is telling in itself; essentially as long as NS is still getting the traffic they don't really care about what else is going on. And with the more recent apathy towards every core traffic on their own system, you can guarantee they're not too worried about what's essentially a fringe operation for them right now.

As far as other potential suitors, we've heard rumors that CP is at least somewhat interested in purchasing the trackage from Waterville east to boost up their overall traffic coming out of NMJ, and also as a way to lock in the Irving traffic.
  by Gilbert B Norman
 
Mr. 690, in your immediate, you envision the entire PA system, away of course from passenger trains and their public trough, becoming a Class 2 (25 mph) operation where rail is simply transportation of last resort - and hadly in a position to offer competitive line hauls for high value traffic with the CSX/B&A.

Again I note, that is contrary to the STB's competition stance, hence that is why I hold there will be a strong contender for PA.
  by gokeefe
 
That's the first time I've seen a suggestion of "Waterville east" ... The railroad hasn't been split there since October of 1862 when the Penobscot and Kennebec and the Androscoggin and Kennebec merged to form the Maine Central.

Fascinating ...

Sent from my Pixel 2 XL using Tapatalk

  by 690
 
I mean, that's basically what it is right now, with 25 mph being on the better side of spectrum for a decent amount of it. Having worked there, I can tell you that a good deal of the traffic that Pan Am gets is either because they're the only railroad where the traffic is going, and there aren't any other ways to get that traffic there, or because it's stuff that isn't time sensitive, and doesn't matter that it can take the better part of a week to get from Waterville to Ayer.

As far as the Waterville east rumor, it's just a rumor, but logistically it does make a bit of sense. Sappi is your primary customer that essentially gets every day service, and guarantees you 20-40 cars a day each way, potentially more if CP can do a better job moving freight than Pan Am. Most of that traffic is heading west anyway; CP offers connections into the midwest that can be achieved by just one carrier, or two at most, instead of the several it takes now.

Up in Old Town, ND is looking to ramp up their pulp production to 25-30 cars a day, and that traffic is supposed to be going to China. Well, what railroad has been pushing Searsport hard for bulk shipments? Alternately, they can literally haul it across the continent to Vancouver, and send it that way. Add in the remaining local traffic in Waterville and the NMJ area, and that ties in nicely with what CP already has, and gives you a decent traffic base for trains out of NMJ heading over the Moosehead.

And also, again by doing that, CP would basically be making it so that all Irving traffic has to go either CN or CP.
  by Cosakita18
 
Seems like an odd rumor, seeing as the eastern part of D1 is often viewed as the lowest-value portion of the system...and whoever ends up with that segment will need deep pockets. "Bad shape" might not be quite strong enough to describe most of the line east of Waterville.

If that did happen, it would finalize the transformation of NMJ-Keag into a redundant branch line, although it would probably still see service. I know that Pleasant River is building a new facility in Enfield that will produce (x??) carloads a week, and there are plans to re-purpose the Lincoln Tissue mill into a composite wood materials plant, although I don't know if they would utilize rail to any meaningful degree. Plus there is still a fair bit of New Brunswick traffic that moves via PAR to US east coast markets. I can't tell whether a CP acquisition of the eastern part of D1 would help or hurt traffic on the rest of D1 &2.
Last edited by Cosakita18 on Mon Jul 27, 2020 4:50 pm, edited 1 time in total.
  by pnolette
 
Would probably kill D2 for sure...
  by newpylong
 
Gilbert B Norman wrote: Mon Jul 27, 2020 12:49 pm NS appears to have the most to lose if PA PA falls into "hostile hands" and they have much to gain by targeting the PAS (the B&M E-W line) to become FRA Class 4 - including digging out Hoosac so as to handle "double stacks" and tri-level auto racks. On that point, while the Boston area may only know Bennies Bimmers and Volksies, I'd guess Northern NE still knows F-150's.
I don't think there would be any such thing as hostile hands for a 100 mile originating or terminating line haul to/from Ayer. Those would remain very lucrative train(s) for literally any other railroad other than CSXT and that would never happen. In summary I think anyone would maintain the relationship with NS - hence why they aren't in a hurry to buy the entire kitten kaboodle.

I can't see anyone rebuilding to Class 4 - the railroad has always been Class 3 and there would need to be a substantial tonnage increase to warrant that expenditure.

The Hoosac Tunnel already handles trilevel autoracks and double stacks (but only one domestic and one international).
Last edited by newpylong on Mon Jul 27, 2020 5:59 pm, edited 2 times in total.
  by lordsigma12345
 
newpylong wrote: Sun Jul 26, 2020 2:17 pm
I've taken 10 minutes to make a map of owned (red) and trackage rights (blue) of all GWI owned roads should such a full sale be proposed. I think you're on another planet if you think this would not get a serious look. Yes, it could go through with concessions, but it would be scrutinized heavily, at the very minimal.
And the Conn River line could almost be purple because of the easement they have there gives them extensive ownership like rights for freight that MassDOT cannot take away.
Last edited by MEC407 on Mon Jul 27, 2020 9:59 pm, edited 1 time in total. Reason: excessive quoting
  by johnpbarlow
 
Interesting NS Exec Management change effective 9/1/20 that may have no bearing on NS pursuit of PAS/PAR purchase:
Norfolk Southern Corporation (NYSE: NSC) today announced its board of directors has appointed Cindy Sanborn executive vice president and chief operating officer, effective Sept. 1, 2020. Sanborn will succeed Michael Wheeler, who will retire from the company effective Oct. 1, 2020.
http://www.norfolksouthern.com/content/ ... wheel.html
  by BandA
 
Probably too late to affect any PAR transaction, although at a time of transition you sometimes get indecision.
  by gokeefe
 
riffian wrote:According to this CP has no interest in PanAm:

https://guilfordrailsightings.groups.io ... 0,75728787
Nice to have some definitive confirmation either in the positive or the negative. So at the moment it would appear that CN is the only possible Canadian buyer. I'm assuming that Brookfield/GW (Toronto) is not a possibility as this would imply a merger of GW and Pan Am.

Worth recalling that CN is headquartered in Montreal (935 Rue De La Gauchetière O, Montréal, QC H3B 2M9, Canada). On a lark I checked Google Maps ... BMO Financial Group has an address that is approximately 480 feet up the street at 800 Rue De La Gauchetière O #5600, Montreal, Quebec H5A 1K8, Canada.

You can make your conclusions as to the significance or lack thereof but I am now all but certain that CN is the buyer. It seems impossible to me that Pan Am would agree to using this bank for any other buyer.

Sent from my Pixel 2 XL using Tapatalk

  by newpylong
 
Except they've used the same bank before most recenty for the -8 underwriting. Furthermore we don't even know that they've located a buyer. Most financial groups like this provide pre-sale services to actually vet potential buyers.

Out of any Class Is they are at the top of the rumor mill though.
  by Cosakita18
 
That seems like mighty slim evidence to me. That BMO location looks to be a run-of-the-mill retail bank branch in a shopping center... Geographic correlation does not equal causation.
Last edited by Cosakita18 on Tue Jul 28, 2020 6:26 pm, edited 1 time in total.
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