CSX Acquisition of Pan Am Railways

[gokeefe]

All possible ... Except ... It has been made clear that the sale is "all or nothing". From anecdotes I've heard over the years Pan Am has a tendency to be very firm in their commercial terms. Some of the same anecdotes also indicate that when a deal is executed the follow through is what I would describe as "crisp". Terms are followed and the sale or transaction executes as written in a prompt manner. I'm sure others will have stories to the contrary but I've seen this tendency play out over multiple projects and/or transactions.

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[shadyjay]

Here's something that got me thinking... probably a long shot:

Guilford/Pan-Am still owns the ends of some lines it has given up since the 80s... IIRC, a few thousand feet at the north end of the New Hampshire Northcoast in Ossipee on the Conway Branch, the former Twin State Railroad from Whitefield NH west to St J, and some of the upper end of the Lewiston Lower (?). I also recall that Guilford still held onto thru freight rights on the Mountain Division in NH. Now would a sale of PAR/PAS include these isolated segments? I know its extremely doubtful of the Mountain Division becoming a thru route again, but would it eliminate the legal binding on that western end, permitting VRS or another operator to step in (might be "too little too late" for that line). Or the chances of the other segments? Has NHNC expressed any interest moving northward, but has been denied in the past because of that "paper" barrier?

[gokeefe]

Even if Pan Am didn't dispose of these rights I think there is a very good chance a Class I successor would gladly do so. In particular I think they would consider it for the sake of additional commercial development opportunities from their feeder lines. I think Pan Am's reluctance to encourage this potential competition arose out of a genuine, sincere and well placed belief that the Class IIIs would gladly hang them out to dry if they could. A Class I simply doesn't have that kind of vulnerability and can afford to make life miserable for an interchange partner in order to prove a point if they feel the need.

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[newpylong]

There has been no evidence except opinion that the sale is an all for nothing. I still feel this is not going to be the case and there will remain a split between what is now PAS/PAR - but until the sale is announced it's guesswork on either side of the argument.

Last I recall Guilford sold the last remaining mileage they owned on the Conway Branch. There is no business case for this line.
No one, absolutely no one, is going to rebuild the old Mt Division between St J and Whitefield. What is the business case there as well? What is there possible to move between Portland and Canada that can't be moved via one of the other gateways that is intact?

[Gilbert B Norman]

Mr. Newpy, wasn't the MEC line through Crawford Notch sold to a tourist line? If so, hasn't that line effectively been truncated?

I can recall from Camp days returning from a Mt. Washington hike (Tuckerman Ravine Trail for you mountaineers around here) and "a train" was descending that very steep line, as was the highway as well.

Get to St. Johnsbury by whatever means such as tracking over the tourist line, and so far as I know, the interchange there with the St Johnsbury and Lamoille County is gone as that road no longer exists.

So I guess I wonder why is it being discussed here, other just "vamp" until some kind of decision on the Sale is announced.

[F74265A]

In theory there is access to CP and VRS through the St. J connection. I 100% agree, however, that there is no freight future whatsoever for freight on the mountain division given all the other connections available today and the extreme expense of rebuilding and maintaining a mountain railroad

[MEC407]

...wasn't the MEC line through Crawford Notch sold to a tourist line?

That section of the line is now owned by the State of New Hampshire and leased to Conway Scenic Railroad.

[BandA]

PAR selling Clinton to Berlin ROW. Remember, the MBTA or MassDOT has owned Berlin to Boston since the 1970s or 80s. https://www.masslive.com/news/2020/10/t ... trail.html

After years of planning, the wheels are finally in motion to turn Clinton’s abandoned train tunnel into useable recreational space by improving it and connecting it to the Mass. Central Rail Trail, which, once complete, will run 104 miles from Northampton to Boston. There are 51 miles of trail completed today, a patchwork running across the state that various groups are working to connect.

The Clinton Greenway Conservation Trust, a non-profit land trust, was recently awarded a $111,920 grant with $67,316 in matching funds that will allow them, along with the town of Clinton, to acquire the abandoned railway section that runs from Route 70 in Clinton to the town of Berlin. The purchase, which includes the train tunnel, will officially make it part of the Mass. Central Rail Trail, a repurposing of the Central Massachusetts Railroad corridor designed to connect Boston to Northampton in a shared-use trail.

[F74265A]

The Clinton section of that proposed trail would have been WAY better if the high trestle in front of the dam had not removed in the early 1970s. The tunnel ends abruptly at route 70 at a place on a busy road where there is no parking to speak of or anything else interesting

[A215]

I'm hearing a little bit of talk of final announcement on the 1st. Also no truth to a split from what I'm still hearing.

[GuilfordRailSD45]

Thank you for the insight A215, much appreciated. Regarding "no truth to a split from what I'm still hearing", are you saying a split is unlikely or likely, based on what you're hearing? I'm assuming the former but just wanted to clarify, after all the conversation of a potential split on here!

[bostontrainguy]

So if no split then it is being sold in its entirety in one transaction to a single buyer. Can that single buyer however be a new joint venture (e.g., "NERAIL") that is owned by CSX and NS who will then decide on how they want to split it up between CSX, NS and CONRAIL? This may get very interesting and a huge step forward for rail freight in New England.

[markhb]

In theory there is access to CP and VRS through the St. J connection. I 100% agree, however, that there is no freight future whatsoever for freight on the mountain division given all the other connections available today and the extreme expense of rebuilding and maintaining a mountain railroad

From what I've ever heard (and I grew up in Portland watching the Mountain Division head out to St. J every afternoon, 4:00-ish), the value to the MD was that it kept the Maine Central from being entirely at the mercy of the B&M for westbound traffic, particularly since it had so little on-line traffic. Since the Class I connection at St. J is no longer available, even if somehow a sale were to split the line at Rigby Yard I can't see the MD ever coming back to what it was... and it took a lot of explaining to get me to give up my nostalgia for the line.

[bostontrainguy]

R&P has updated their report. Worth a read:

https://railsandports.com/2020/10/par-s ... way-there/

[NHV 669]

Lol, that's the same guy I mentioned earlier. This whole "report" reeks of snippets grafted out of this forum.