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3/19/2021
Opposition to CSX's proposed acquisition of Pan Am Railways is lining up, according to recent filings with the Surface Transportation Board (STB).
This week, the Massachusetts Department of Transportation, the Massachusetts Bay Transportation Authority, various state lawmakers and the Vermont Rail System were among those expressing concerns about the impact the acquisition would have on rail competition in New England.
The filings also were critical of a related transaction involving CSX and Pan Am Southern, a joint venture that provides Norfolk Southern Railway with access to New England via the former Boston & Maine rail line. Under the proposal, CSX would assume Pan Am Railway's 50% stake in Pan Am Southern, and a new Genesee & Wyoming Inc. short line would be a "neutral" operator of Pan Am Southern.
In addition, CSX wants the Pan Am Railways acquisition to be considered a "minor" transaction under the board's consideration. Recent filings ask the STB to review CSX's application as a "significant" transaction, which require a longer board review and a public comment period.
Yesterday, CSX filed a response with the STB.
"No party has offered a valid basis for requesting that the board classify the transaction as 'significant' or to require the application to be re-filed," CSX officials said in the filing. "The transaction was carefully structured to eliminate potential competitive harm, enhance competition and improve the rail network throughout the Northeast. The only thing 'significant' about the transaction is the extent to which it enhances competition and strengthens the rail network in the Northeast."
CSX officials also noted that the Class I's application contains 58 letters of support from shippers, government officials and local communities that favor the benefits the acquisition would provide.