• 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

  by GP40MC1118
 
Two welded rail trains coming. Destined for Worcester. Whether these are CSX or MBTA trains is unknown. Both should be in or out of Buffalo today. Symbol, details in the Fairport NY Railcam train log
  by newpylong
 
BandA wrote: Thu Jul 21, 2022 12:51 pm If I read that right, at $600M, PAR is much less profitable than the rest of CSX, or possibly unprofitable? Big companies like CSX won't put up with that for very long and will have a plan to fix the problem or obscure it.
It does not take a rocket scientist to come to the conclusion that your money is better off spent keeping freight moving than transporting employees around in taxis, etc. Of course PAR does not operate as efficiently as the rest of the CSX.
Last edited by newpylong on Fri Jul 22, 2022 11:20 am, edited 2 times in total.
  by newpylong
 
GP40MC1118 wrote: Thu Jul 21, 2022 2:08 pm Two welded rail trains coming. Destined for Worcester. Whether these are CSX or MBTA trains is unknown. Both should be in or out of Buffalo today. Symbol, details in the Fairport NY Railcam train log
Keolis isn't getting any rail so has to be for CSX or someone else.
  by BandA
 
IIRC they are not reducing many jobs, and probably can absorb anyone if they are willing to move? In the short term spending actually goes up due to capital expenses, retraining, etc. $600M presumably is equal or greater than the present value of PAR's income stream, otherwise Mellon would have kept it. Well timed sale with so much economic uncertainty.
  by BobbyT
 
I believe that most of the executives are already gone and since Billerica will no longer function as a corporate headquarter, the majority of the office work, like Accounting, Legal, HR, customer service, car management, etc, will eventually be consolidated and move to Jax. Head count reduction is always part of the plan with these acquisitions and while most people are being offered jobs, many will simply be to fill holes in Jax. Labor positions in T&E, track, Mechanical, etc are much more likely to stick around, but at the end of the day, a lot of Pam Am's payroll will disappear.
  by johnpbarlow
 
The attached screen captures are # of added Pan Am employees (659) and how CSX presented the cost of the Pan Am acquisition in the Q2 2022 10-Q report published 072122.
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  by newpylong
 
From what I have been told, CSX plans to run 60 MPH (unsure if thats IM or freight or both) between State Line and 185. They can't go more than 40 on the MBTA due to ACSES being set to 40.
  by BobbyT
 
Makes sense, not many sharp curves or grades on that stretch, though not the heaviest rail at 115#,
  by BandA
 
So CSX now "owns" 659 new employees. PAS in it's entirety is "worth" $172M. Goodwill of $84M is what CSX paid over and above "fair price" or "book value". Deferred tax liability, what is that? Accrued liability, that is the bill for motor oil :wink:

Really interesting that most of the sale was stock so that Mellon presumably doesn't have to pay as much capital gains this year.
  by CPF66
 
GP40MC1118 wrote: Thu Jul 21, 2022 2:08 pm Two welded rail trains coming. Destined for Worcester. Whether these are CSX or MBTA trains is unknown. Both should be in or out of Buffalo today. Symbol, details in the Fairport NY Railcam train log
Those are likely for MNR. They got a grant which was already put into effect for the Madawaska Subdivision, which included CWR to replace worn stick rail. I have heard that the tie and ballast crews are out in full force up there.
  by NHV 669
 
Both trains still tied down in Buffalo as of 10:30.
  by johnpbarlow
 
So if these rail trains are heading to MNR, then they would be revenue trains for CSX and would not use a CSX work train symbol like Wxxx? Regardless I wonder if the rail trains will just be tacked onto one or more M426 trains.
  by newpylong
 
Depends on if a loaded rail train is prohibited by special instruction to be moved in manifest.
  by jamoldover
 
Per the CSX Employee Operating Manual (2017 edition), here are the train handling rules that apply:
4554 - Handling Welded Rail Equipment
4554.1 When handling a train containing welded rail equipment, make certain that there is a means of preventing any rail movement beyond the end of the equipment by:
  • a. Bulkhead doors, which must be closed and locked before movement, or
    b. Designated buffer cars, or
    c. Loaded hopper cars.
4554.2 When the number of loaded welded rail equipment cars, including the cars preventing rail movement, exceeds twelve (12), make certain that no other equipment is moved in the train except for cars relating to the rail, such as: loading and unloading cars and buffer cars.
4554.3 Do not move more than twelve (12) loaded welded rail equipment cars in a freight train. When loaded welded rail equipment is moved in regular freight service, make certain that the rail equipment is next to the locomotive consist.
4554.4 When empty welded rail equipment is moved in regular freight service, make certain that the empty welded rail equipment is handled on the rear of the train.
4554.5 Do not handle more than two rail trains in the same train. When one train is loaded and one is empty, make certain that the empty train is on the rear
  by NHV 669
 
johnpbarlow wrote: Sat Jul 23, 2022 12:09 pm So if these rail trains are heading to MNR, then they would be revenue trains for CSX and would not use a CSX work train symbol like Wxxx? Regardless I wonder if the rail trains will just be tacked onto one or more M426 trains.
I wouldn't bet on it.

The two symbols are W016-15 and W024-20.
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