Federal government approves acquisition of Regional Railroad by CSX
JACKSONVILLE, Fla. (AP) — Federal regulators have approved CSX’s purchase of Pan Am Railways, a regional railroad in the northeastern United States that will expand CSX’s network into New England.
The U.S. Surface Transportation Board said Thursday that the deal first announced in late 2020 can now go ahead. Terms of the agreement were not released.
The agreement will expand CSX’s 23-state network to Vermont, New Hampshire and Maine, while expanding its reach to New York, Connecticut and Massachusetts. CSX will also acquire Pan Am’s partial interest in a 600-mile joint venture with the Norfolk Southern Railway called Pan Am Southern.
Edward Jones analyst Jeff Windau said Pan-Am is relatively small compared to CSX, but railroads rarely find an opportunity to expand their networks like this, and the agreement will bring additional volume.
Regulators said the deal should improve Pan-Am’s rail network because CSX has more capital to invest in the tracks, and customers will benefit from being able to ship their goods across the region on a single railroad. iron. The deal may also have environmental benefits, as CSX uses newer and more efficient locomotives.
CSX CEO Jim Foote said he looks forward to adding Pan-Am employees and serving industries in the northeast that depend on the railroads. Foote said he was pleased that regulators “recognized the significant benefits this transaction will bring to shippers and other New England stakeholders.”
Pan Am, which is based in North Billerica, Mass., is set to join CSX, based in Jacksonville, Fla., on June 1.
Prior to the deal, CSX was already one of the nation’s largest railroads, operating more than 21,000 miles (34,000 kilometers) of track in 23 eastern states and two Canadian provinces.