USA: CSX Corp has signed a definitive agreement to acquire Pan Am Railways, which operates North America’s largest regional railway in the New England region.
Headquartered in North Billerica, Massachusetts, Pan Am owns and operates a 1 900 km network and has a partial interest in the 960 km Pan Am Southern route, which it operates jointly with Norfolk Southern. It connects with the four eastern Class I operators CN, CP, CSX and NS, as well as more than 20 regional and short line railways.
The acquisition will add Vermont, New Hampshire and Maine to CSX’s existing 23-state network, while expanding its reach in Connecticut, New York and Massachusetts.
‘In Pan Am, CSX gains a strong regional rail network in one of the most densely populated markets in the USA, creating new efficiencies and market opportunities for customers as we continue to grow’, said CSX President & CEO James M Foote on November 30.
‘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.’
Terms of the transaction were not disclosed, and completion is subject to regulatory review and approval by the Surface Transportation Board. In mid-November Norfolk Southern told STB that would oppose the transaction, which it believed would stifle competition, with adverse impacts on other railroads and shippers in New England.
Goldman Sachs is acting as financial adviser to CSX, and Davis Polk & Wardwell as legal adviser.
