Eastern Railroad Discussion > It's Official--Conrail Fight II?

Just arrived in the inbox:

Dear Valued CSX Customer,
 
We’re pleased to inform you that we have reached an agreement to acquire Pan Am Railways, extending the CSX rail network in New England and providing potential new market opportunities for you and other existing CSX customers. This end-to-end acquisition will increase the competitiveness of CSX’s rail service with trucks by expanding single-line rail service across a larger CSX network.
 
Pan Am is North America’s largest regional railroad, serving customers in six states. The acquisition would expand our network in Connecticut, New York and Massachusetts, while providing our customers with new access to markets in Vermont, New Hampshire and Maine.
 
The CSX Sales and Marketing team is looking forward to exploring new supply chain solutions with you and implementing those solutions once the Surface Transportation Board approves the acquisition, as expected in 2021. We will keep you informed as this transaction progresses, and look forward to connecting with you about the potential growth opportunities made possible by the Pan Am acquisition.


Mark Wallace
Executive Vice President, Sales and Marketing

My first thought is how NS is going to react, unless they have already worked something out.  My second thought is how much of PAR they are going to sell/abandon?

I heard csx worked out some sort of arrangement with NS.

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mttrainman1 Wrote:
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> I heard csx worked out some sort of arrangement
> with NS.
>
NS presumably will get the B&M main from Ayer west. Not sure what else of PAS would go to them, but in any case this could be bad news for East Deerfield Yard.
 

It's bad news for PAS customers; by the time CSX pares it down to PSR standards, there will not be enough left to handle whatever business the Finks have been able to preserve.

This is not good...CSX has decimated traffic in Southern New England, especially around the Boston area.....

I wonder if CSX want's NS to enter into a bidding war with them over Pan Am?

bluesboyst Wrote:
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> This is not good...CSX has decimated traffic in
> Southern New England, especially around the Boston
> area.....

A lot more involved than just CSX "decimating" the traffic.  Heavy industry has been leaving the New England states since before CSX even existed.



Edited 2 time(s). Last edit at 12/01/20 19:30 by pennsy3750.

I have been hearing rumors about a shared assets arrangement similar to New Jersey. I am trying to be optimistic that csx will not drain all the value out of the railroad and piece it off or abandon what they can. I am wondering what kind of valuable real estate will come with the purchase. Another interesting piece is that csx is re-evaluating Beacon Park yard. I had thought they had sold it all but I guess the remaining tracks 4-8 or 9 are still viable. I am envisioning 140 car distributed power trains running across the Grand Junction....lol

mttrainman1 Wrote:
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> I am envisioning 140 car distributed power trains
> running across the Grand Junction....lol

I don't think they can get onto the Grand Junction any more, without coming in from the CP-3 end and the running around.  Imagine doing that with 140 cars.