CSX Corp. announced on July 2 that it submitted an amended and supplemented application to the Surface Transportation Board (STB) as part of the previously announced agreement to acquire New England’s Pan Am Railway’s Inc. (Pan Am). The amended application provides all of the additional details of the proposed transaction requested by the STB in their May 26, 2021 ruling.
James M. Foote, president and chief executive officer of CSX said: “CSX is pleased to submit an expanded application for the acquisition of Pan Am Railways, which explains the tremendous benefits of the proposed transaction for stakeholders in New England and beyond.
David A. Fink, president of Pan Am Railways said: “Pan Am remains excited about this merger with CSX, a North American leader in rail-based freight transportation. We have continued to receive support from our customers about the transaction as they know that CSX’s investment in the region will benefit not only New England shippers but also those who will have new access to their goods and products through the direct connection into CSX’s national rail network.”
The combination of CSX and Pan Am provides benefits to many stakeholders in New England, as evidenced by the over 80 letters of support that shippers, elected officials and business organizations have submitted to the STB. CSX has also worked to reach agreements with other rail operators and organizations in the region to ensure that the transaction results in enhanced competition and a strengthened rail network in the Northeast.
The proposed transaction would result in significant investments in the region’s rail infrastructure. Over the next five years, CSX would invest to upgrade and modernize the Pan Am system, which will make the New England rail network more efficient and safer for operations, communities and passenger rail.
New England will also benefit from CSX’s track record as leader in environmental performance. CSX will operate Pan Am with a smaller, more reliable and more fuel-efficient fleet, significantly reducing fuel consumption and improving rail’s environmental footprint in the region.
CSX’s operating model will benefit passenger and commuter carriers in New England as well as shippers as the company commits to maintaining or improving existing passenger service that operates on Pan Am. CSX has a long-standing history of working cooperatively with Amtrak and other passenger rail partners as evidenced by the significant improvement in contractual on-time performance with Amtrak since CSX has implemented its new operating model.
Headquartered in North Billerica, Massachusetts, Pan Am owns and operates a highly integrated, nearly 1,200-mile rail network and has a partial interest in the more than 600-mile Pan Am Southern system. Pan Am’s network across New England has access to multiple ports and large-scale commodity producers. The transaction will expand CSX’s reach in Connecticut, New York and Massachusetts while adding Vermont, New Hampshire and Maine to its existing 23-state network.
Terms of the transaction were not disclosed. The transaction is subject to regulatory review and approval by the Surface Transportation Board.
-via Press Release