CSX Corp. has announced that it has signed a definitive agreement to acquire New England’s Pan Am Railways, Inc. (“Pan Am”), whose rail carrier subsidiaries comprise North America’s largest regional railroad.
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 England has 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.
The transaction will provide significant benefits to shippers and local communities as CSX integrates Pan Am into its best-in-class network. CSX made nearly $1.5 billion in infrastructure capital expenditures in its network in 2019, supporting economic growth and ensuring the safety and efficiency of the supply chain.
James M. Foote, president and chief executive officer of CSX commented: “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. 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.”
David A. Fink, president of Pan Am Railways said: “Pan Am is pleased to reach this agreement with CSX, a North American leader in rail-based freight transportation. This is great news for New England shippers and the national freight network overall.”