CSX to acquire Pan Am Railways

CSX announced yesterday it has signed a definitive agreement to acquire Pan Am Railways Inc., the New England regional.

Based in North Billerica, Massachusetts, Pan Am owns and operates a nearly 1,200-mile network and has a partial interest in the more than 600-mile Pan Am Southern rail system. Pan Am's network across New England has access to multiple ports and large-scale commodity producers, CSX officials said in a press release.

The acquisition will expand CSX's reach in Connecticut, New York and Massachusetts, while adding Vermont, New Hampshire and Maine to its existing 23-state network, they said.

By acquiring Pan Am, CSX will gain a strong regional rail network in one of the most densely populated U.S. markets. The acquisition will create new efficiencies and market opportunities for shippers as CSX continues to grow, said CSX President and Chief Executive Officer James Foote.

"We intend to bring CSX's customer-centric focus and industry-leading operating model to shippers and industries served by Pan Am," Foote said. "We look forward to integrating Pan Am into CSX, with substantial benefits to the rail-served industries in the Northeast, and to working in partnership and connecting railroads to provide exceptional supply-chain solutions to New England and beyond."

Terms of the transaction were not disclosed. The transaction is subject to Surface Transportation Board (STB) review and approval.

Earlier this month, CSX competitor Norfolk Southern Railway expressed concerns to the STB about CSX's potential acquisition of Pan Am. Since 2009, NS has been a partner in a joint venture with Pan Am to control Pan Am Southern, which provides NS access to New England via trackage rights.

In a Nov. 6 letter to the board, NS officials said they are concerned about the impact a CSX-Pan Am acquisition would have on competition.