CSX: Maine governor, others file support for Pan Am merger

CSX announced yesterday that its proposed merger with New England’s Pan Am Railways Inc. gained additional support from Maine Gov. Janet Mills as well as four shippers, two municipalities and one member of the New York State Assembly. All filed letters with the Surface Transportation Board (STB) to express support for the deal, CSX officials said in a press release.

“This transaction has the potential to bring substantial benefits to Maine. The state of Maine relies on rail traffic to deliver goods and support our economy. If the transaction is approved, CSX has indicated that it will make upgrades to track and locomotives to provide improved service, extend positive train control on Amtrak's Downeaster, and make other improvements to the rail network,” Mills wrote, according to CSX.

“These changes would benefit Maine businesses and shippers that rely on freight rail to ship products and goods and positively impact passenger rail service,” she added.

The merger will provide “significant benefits” to shippers, passenger-rail users, and local communities as the Class I integrates Pan Am into its network, CSX officials said.

CSX filed an expanded application with the STB on July 1 as part of an agreement to acquire Pan Am Railways and is awaiting regulatory approval.