Regulators approve CSX’s purchase of a regional railroad
JACKSONVILLE, Fla. — 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 in New England.
The U.S. Surface Transportation Board said Thursday that the deal that was first announced in late 2020 can now be completed.
The deal will expand CSX’s 23-state network into Vermont, New Hampshire and Maine, while adding to its reach in New York, Connecticut and Massachusetts. CSX will also acquire Pan Am’s partial ownership of a 600-mile joint venture with Norfolk Southern railroad called Pan Am Southern.
Edward Jones analyst Jeff Windau stated that Pan-Am is small compared with CSX. However, it is rare for railroads like CSX to have the opportunity to expand their networks as this deal will.
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. The deal may also have environmental benefits as CSX uses more efficient locomotives.
Pan Am is based in North Billerica (Massachusetts). CSX will now be based in Jacksonville, Florida.
Before 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.
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