CSX Acquisition of Pan Am Railways

[gokeefe]

I doubt very much it's still "tire kicking". There has already been one rumor posted that a deal is being inked as we speak. My perspective on this is that it has gone public now that they have a buyer on the hook. That's a normal part of the process and the second comers have a mountain to climb because the first comer already has planned for the financing (be it cash or debt).

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[newpylong]

The rumor is strong regarding the deal being further along than believed. However we must remember it is common to hire a merger and acquisition firm (esp one they've used before) or other Investment/Business broker as an intermediary to find the buyer that is best suited. We could hear tomorrow or not for 6 months, or they may decide none of the terms of eligible buyers are good enough and they take it off the block.

[Shortline614]

Any idea who the name written with the ink would be?

[bostontrainguy]

CN

[NS VIA FAN]

On the refining side of Irving.......do they move any petroleum products into the US by rail from Saint John? (How far south have Irving Gas stations reached now? I know they're in Connecticut. Any in NY?)

[MEC407]

From Wikipedia:

Irving Oil's core retail area is in northeast North America and is well served by a network of regional ports and harbours in Atlantic Canada, Quebec and New England - an area that is under-served by pipelines. Consequently, the company economically transports much of its petroleum products to regional distribution terminals at ports throughout the region using its own fleet of coastal tankers.
. . .
Irving Oil once made extensive use of rail service to deliver petroleum from the Saint John refinery to rail-side distribution terminals throughout Atlantic Canada and Quebec. The decline in rural branch rail lines operated by Canadian National Railway and CP Rail in the 1980s and 1990s, combined with the increase of 4-lane highway construction, has seen Irving Oil eliminate practically all retail petroleum delivery by rail and the closure of many of its rail-side distribution terminals in favour of newer highway-served terminals or direct deliveries.

Irving Oil continues to make extensive use of rail service for wholesale petroleum deliveries from its Saint John refinery. Products such as propane, liquid asphalt and diesel are delivered daily to locations in Quebec and New England via New Brunswick Southern Railway, owned by sister company J.D. Irving Limited as well as by CN.

[gokeefe]

If they move refined products by rail it's not a significant amount. Most of what they make moves by barge.

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[Cosakita18]

Irving has a fleet of mid-sized tankers that carry refined product on regular schedules from SJ to Searsport, Portland, Portsmouth, Boston, New Bedford and Providence.

What about moving crude from the US to SJ via the MEC?? Any market there?

[MEC407]

My assumption is that most of their crude these days is either diluted bitumen from Alberta or Bakken crude from North Dakota. Looking at a map, it doesn't appear to me that there would be a compelling routing that involves the MEC... but maybe I'm missing something?

Obviously there have been crude trains on the MEC in the past, but that was very short-lived.

[gokeefe]

Those were indeed headed to Saint John. For whatever reason that's the route they took at the time.

And thank you for the clarification on barge vs. mid sized tanker. "Nor'easter", and "Acadian" being two examples.

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[A215]

Internal rumors suggest more should be known by the end of the month.

[gokeefe]

That would be welcome news. Anything that minimizes the period of uncertainty is good. Also means their buyer likely has met the asking price easily and is not worried about debt.

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[GP40MC1118]

The OCS or business train is on the move from Waterville and has gotten to Rigby. Probably one
last jaunt or a buyers inspection trip? Rumored to be running to Ayer tomorrow.

[bostontrainguy]

Someone go check the car license plates in Waterville.

[690]

It was just a deadhead move from Wtvl to Rigby.