CSX Plans To Acquire 12K-Mile Rail Network In New England
Jacksonville-based CSX is trying to acquire New England’s Pan Am Railways, Inc.CSX announced the deal on Monday.
Headquartered in North Billerica, Mass., Pan Am owns and operates a nearly 1,200-mile rail network and has a partial interest in the more than 600-mile Pan Am Southern system.
“In Pan Am, CSX gains a strong regional rail network in one of the most densely populated markets in the U.S., creating new efficiencies and market opportunities for customers as we continue to grow,” said CSX President and CEO James Foote in a news release.
If approved, 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.
The proposed deal still has to go through a regulatory review and approval by the Surface Transportation Board.
Competitor Norfolk Southern Railway Company (NSR) has filed a letter of concern about the proposed acquisition to the STB, writing, in part: “One of the main benefits of NSR’s and Pan Am’s joint control and ownership of PAS [Pan Am Southern LLC] was to strengthen competition with CSXT."
A CSX spokesperson told Progressive Railroading: “As part of this effort, CSX has engaged directly with Norfolk Southern to understand any issues they might have.”
Neither CSX or Pan Am has disclosed the terms of the proposed transaction.