CSX Corp. is acquiring New England’s Pan Am Railways, 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.
Terms of the transaction were not disclosed, and the transaction is subject to regulatory review and approval by the Surface Transportation Board (STB).
“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,” James M. Foote, president and chief executive officer of CSX, said in a news release.
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 railroad said.
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.
“Pan Am is pleased to reach this agreement with CSX, a North American leader in rail-based freight transportation,” David A. Fink, president of Pan Am Railways, said in a news release. “This is great news for New England shippers and the national freight network overall.”
Goldman Sachs & Co. LLC is acting as financial advisor and Davis Polk & Wardwell LLP is acting as legal advisor to CSX in connection with the transaction.