CSX: Pan Am Merger Software Moves Forward, Assistance Builds
The Floor Transportation Board (STB) has approved for consideration CSX’s amended and re-filed Pan Am Railways acquisition application, and established a procedural routine, with a final determination to be rendered April 1, 2022. The proposed merger is also getting guidance, CSX described.
The STB’s decision—published in the Federal Sign-up on July 30 (download below)—also preliminarily determines that environmental and historic evaluation is not necessary and requests additional environmental information and facts from CSX by Aug. 19.
STB on May perhaps 26 rejected as “incomplete” the merger application submitted by CSX Transportation, Inc. to receive control of Pan Am Units, Inc. and its brief line railroad subsidiaries. STB reported it “found that the software did not include all of the information and facts necessary for needs of a ‘significant’ transaction underneath the Board’s regulations.”
On July 1, CSX submitted a revised software, stating that it “provides all of the extra aspects of the proposed transaction asked for by the STB.”
Pan Am, headquartered in North Billerica, Mass., owns and operates a virtually 1,200-mile rail community throughout New England and has a partial curiosity in the far more-than 600-mile Pan Am Southern procedure, jointly owned with Norfolk Southern. Pan Am’s community reaches numerous ports and big-scale commodity producers. The transaction will increase CSX’s attain in Connecticut, New York and Massachusetts, even though adding Vermont, New Hampshire and Maine to its present 23-state network.
General public comments on the revised software are thanks Aug. 27, and reviews on the environmental facts are because of Sept. 17. Download Federal Sign up observe underneath for the full procedural timetable.
Aid Grows for CSX-Pan Am Merger Proposal
CSX on July 29 noted that its proposed merger with Pan Am Railways has garnered help from some 90 stakeholders. Between the most current are Maine Gov. Janet T. Mills as well as four shippers, two municipalities, and a single member of the New York Point out Assembly—all of whom have filed letters with the STB.
Following are highlights of their statements, presented by the Class I railroad:
• Gov. Mills: “This transaction has the possible to bring sizeable added benefits to Maine. The point out of Maine relies on rail targeted visitors to produce products and assistance our overall economy. If the transaction is permitted, CSX has indicated that it will make updates to track and locomotives to deliver improved support, lengthen optimistic educate handle on Amtrak’s Downeaster, and make other improvements to the rail network. These improvements would reward Maine organizations and shippers that count on freight rail to ship solutions and items and positively affect passenger rail company.”
• Mark Gasbarro, Proprietor and President, F&M Software and Plastics (Leominster, Mass.): F&M Device and Plastics “looks ahead to the enhanced company that we will obtain from CSX adhering to the acceptance by the Floor Transportation Board of the merger.”
• Brunswick Valley Lumber (Fredericton, New Brunswick, Canada): The CSX-Pan Am mix will make it possible for Brunswick Valley Lumber to “implement new offer chain answers and current market opportunities” and boost its competitiveness by “lower fees, superior provider, and improved accessibility to the North American rail community.”
• Tony Gentile, Basic Manager, Cooperative Reserve Supply (North Billerica, Mass.): CSX’s benchmarks of services functionality will guide to “higher velocity, faster equipment turns, and higher consistency” that must “enhance [their] competitiveness.”
• Saratoga County (N.Y.) Administrator Steve Bulger: Freight railroads are frequently “the lifeblood” for communities, and a profit of the proposed transaction is that CSX will “enhance levels of competition via decreased expenses, improved services and enhanced access” to the rail network in the Japanese U.S.
• Mechanicville (N.Y.) Mayor Dennis Baker: CSX summarized that he “sees the offer as a way to improve freight rail support to his local community and capitalize on the fiscal resources CSX provides to the table to undertake ‘much wanted infrastructure improvements’ throughout Pan Am’s rail network.”
• New York Condition Assemblywoman (113th Assembly District) Carrie Woerner: “I support this proposed acquisition and imagine my constituents will gain from its adoption.”