CSX Corp. recently announced that it submitted an Amended and Supplemented Application to the Surface Transportation Board (STB) as part of an agreement to acquire New England’s Pan Am Railways, Inc. (“Pan Am”).
The transaction will provide significant benefits to shippers, passenger rail users, and local communities as CSX integrates Pan Am into its best-in-class network.
As CSX connects more of New England with its’ existing 23 state network, which serves two thirds of the nation’s population, CSX will also be investing in infrastructure. This new investment will bring Class I railroad resources to the region; update the entire network, and make it more efficient and safer for operations, communities, and passenger rail.
Other benefits of the transaction include:
- CSX invested nearly $1.4 billion in infrastructure capital expenditures in 2020. These private infrastructure investments will lead to benefits for all users of the Pan Am network, including passenger service, as overdue efforts to modernize the Pan Am network will occur making the Pan Am rail network in New England more efficient and safer for rail operations.
- CSX plans to increase capital investment across the Pan Am system to raise track standards, which will include catch-up investments in rail, tie, bridge and yard improvements. Additionally, CSX intends to implement standard CSXT asset replacement cycles.
- For example, over the next five years, CSX will upgrade many of the Pan Am’s existing 10-mph main line track to 25-mph standards, greatly improving safety and performance in the region.
- Investments in the system will benefit all users of the network including shippers and passenger rail.
- Sustainability is at the core of CSX’s operations. Trains have the advantage of being the most efficient land-based mode of transportation – on average three to four times more fuel efficient than trucks – and produce 75% fewer GHG emissions.
- CSX and Pan Am expect future growth for rail traffic in New England as users identify new market opportunities to convert truck movements to rail. This will result in reduced fuel consumption, air emissions, and highway congestion.
- The proposed merger will increase overall energy efficiency as a result of improvements in operations and efficiencies achieved through expansion of single-line service.
- Through the adoption of new technology systems and operating practices, CSX has increased its sustainability advantage over their competitors, setting records for fuel efficiency and exceeding emissions-reduction targets.
- On average, CSX moves a ton of freight 533 miles on a single gallon of fuel, which is three to four times more efficient than a truck, helping to lower America’s, and the region’s, carbon footprint.
- CSX will maintain or improve existing service, which in turn will improve customer competitiveness through lower costs, better service, and improved access to the North American rail network. Furthermore, this transaction will not reduce competition from other railroads for New England rail shipments.
- Over five years, CSX will upgrade many of the Pan Am rail network’s main line track miles to 25-mph standards.
- Pan Am customers will enjoy CSX’s customer service, greater schedule reliability, and greater transparency through customer-centric tools.
- CSX is excited to introduce its customer service and supply chain solutions to these and other businesses in the region. Efficiencies will benefit all customers, as CSX will improve service performance, achieve higher velocity, faster equipment turns and greater consistency.
- While Pan Am and existing CSX customers will benefit from single-line service into and out of New England, Pan Am customers will continue to have access to existing connecting carriers, including a direct connection with Norfolk Southern and Canadian Pacific, two other Class I carriers.