CSX Transportation plans to acquire Pan Am Railways Inc., New England”™s largest railroad, in a move that will extend CSX”™s reach in Connecticut and New York, as well as add Vermont, New Hampshire, Maine and various Canadian municipalities to its 23-state network.
Financial terms of the deal, which must be approved by the U.S. Surface Transportation Board, were not disclosed, though some reports put the purchase price at around $700 million.
Privately held Pan Am is based in North Billerica, Massachusetts. CSX, a Fortune 500 company, is headquartered in Jacksonville, Florida.
“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,” CSX CEO Jim Foote said in a statement announcing the deal.
“We look forward to integrating Pan Am into CSX, with substantial benefits to the rail-served industries of the Northeast,” he said, “and to working in partnership with connecting railroads to provide exceptional supply chain solutions to New England and beyond.”
“This is great news for New England shippers and the national freight network overall,” Pan Am President David A. Fink said.
Including haulage rights, Pan Am stretches 1,700 miles from the Albany area to Maine. It also operates commuter lines in the Boston area, under the oversight of the Massachusetts Bay Transportation Authority, and hosts Amtrak”™s Downeaster service linking Boston with Portland, Maine.
CSX connects with Pan Am at Rotterdam Junction, New York.
