CSX Receives Approval from Surface Transportation Board to Acquire Pan Am Railways
CSX Corp. today announced that the Surface Transportation Board (STB) approved CSX’s application to acquire Pan Am Railways, Inc. (Pan Am). CSX will move forward with the acquisition with a planned closing date of June 1, 2022, at which time CSX will acquire control of Pan Am.
“CSX is pleased that the STB approved the proposed acquisition of Pan Am and has recognized the significant benefits this transaction will bring to shippers and other New England stakeholders,” said president and chief executive officer, James M. Foote. “We look forward to integrating Pan Am, their employees and the rail-served industries of the Northeast into CSX and to working in partnership with connecting railroads to provide exceptional supply chain solutions to New England and beyond.”
David A. Fink, president of Pan Am Railways said: “This much anticipated decision paves the way for an exciting new chapter for Pan Am customers and our employees as we begin our transition to the CSX team.”
Adding Pan Am to our network will extend the reach of our service to a wider customer base over an expanded territory, creating new efficiencies and market prospects for customers to capitalize on a robust pipeline of growth opportunities to move freight to, from and within New England.
With this transaction, New England will benefit from CSX’s track record as a leader in environmental performance. CSX will operate Pan Am with a more reliable and more fuel-efficient fleet, significantly reducing fuel consumption and improving rail’s environmental footprint in the region.
Passenger and commuter carriers in New England will benefit as the company is committed to maintaining or improving existing passenger service that operates on Pan Am. CSX has a long-standing history of working cooperatively with Amtrak and other passenger rail partners as evidenced by the significant improvement in contractual on-time performance with Amtrak since CSX has implemented its new operating model.
Headquartered in North Billerica, Massachusetts, Pan Am owns and operates a highly integrated, nearly 1,200-mile rail network and has a partial interest in the more than 600-mile Pan Am Southern system. Pan Am’s network across New Englandhas access to multiple ports and large-scale commodity producers. The transaction will expand CSX’s reach in Connecticut, New York and Massachusetts while adding Vermont, New Hampshire and Maine to its existing 23-state network.
Terms of the transaction were not disclosed. Goldman Sachs & Co. LLC acted as financial advisor and Davis Polk & Wardwell LLP acted as legal advisor to CSX in connection with the transaction.
CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation’s economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation’s population resides. It also links more than 230 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corp. and its subsidiaries is available at www.csx.com.
Matthew Korn – Investor Relations- (904) 366-4515
Source: CSX Corporation