Freight railroad CSX Corp. today agreed to acquire the large regional carrier Pan Am Railways Inc., saying the move will expand its reach throughout the densely-populated New England states.
Terms of the deal were not disclosed, but Jacksonville, Florida-based CSX said the transaction is subject to regulatory review and approval by the Surface Transportation Board.
CSX already has broad reach throughout the region, claiming that its network connects every major metropolitan area in the eastern U.S., where nearly two-thirds of the nation’s population resides. The new deal will now expand CSX’s reach in Connecticut, New York, and Massachusetts while adding Vermont, New Hampshire, and Maine to its existing 23-state network.
North Billerica, Massachusetts-based Pan Am’s rail carrier subsidiaries comprise North America’s largest regional railroad, the firm says. The company owns and operates a 1,200-mile rail network and has a partial interest in the more than 600-mile Pan Am Southern system.
According to CSX, the move will also provide significant benefits to shippers and local communities as it integrates Pan Am into its network. CSX made nearly $1.5 billion in infrastructure capital expenditures in that network in 2019, supporting economic growth and ensuring the safety and efficiency of the supply chain.
“In Pan Am, CSX gains a strong regional rail network in one of the most densely populated markets in the U.S., creating new efficiencies and market opportunities for customers as we continue to grow,” James M. Foote, president and CEO of CSX, said in a release. “We intend to bring CSX’s customer-centric focus and industry-leading operating model to shippers and industries served by Pan Am. We look forward to integrating Pan Am into CSX, with substantial benefits to the rail-served industries of the Northeast, and to working in partnership with connecting railroads to provide exceptional supply chain solutions to New England and beyond.”