|CSX Acquiring Pan Am Railways|
|Staff Reports, |
05:21PM / Tuesday, December 01, 2020
NORTH ADAMS, Mass. — CSX Corp. says it has signed an agreement to acquire North Billerica-headquartered Pan Am Railways Inc.
Pan Am is considered the largest regional railroad with a 1,700-mile rail network in New England and New York and a partial interest in the more than 600-mile Pan Am Southern system. Its tracks run through the Hoosac Tunnel.
"Pan Am is pleased to reach this agreement with CSX, a North American leader in rail-based freight transportation," Pan Am President David A. Fink said in a statement announcing the deal
. "This is great news for New England shippers and the national freight network overall."
Pan Am, previously known as Guilford Rail System, had indicated earlier in the year that it was up for sale.
CSX is a major East Coast freight shipper headquartered in Jacksonville, Fla., covering more than 21,000 miles.
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.
CSX officials say the transaction will provide significant benefits to shippers and local communities with Pan Am's integration. CSX made nearly $1.5 billion in infrastructure capital expenditures in its network in 2019, supporting economic growth and ensuring the safety and efficiency of the supply chain.
"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 James M. Foote, president and chief executive officer of CSX, in the statement. "We intend to bring CSX's customer-centric focus and industry-leading operating model to shippers and industries served by Pan Am. We look forward to integrating Pan Am into CSX, with substantial benefits to the rail-served industries of the Northeast, and to working in partnership with connecting railroads to provide exceptional supply chain solutions to New England and beyond."
The transaction is subject to regulatory review and approval by the Surface Transportation Board. Trains.com
reports that the purchase price was about $700 million.