NORFOLK, Va. — The STB’s approval of Pan Am Railways’ (PAR) and Norfolk Southern’s proposed Pan Am Southern joint venture clears the way for more than $87 million in rail infrastructure investment designed to significantly enhance the service capabilities and commercial offerings that NS and PAR provide in upstate New York and New England, the railroads said.
“Pan Am Southern will bring immediate benefits to shippers doing business in upstate New York and New England,” said David Fink, Pan Am Railways’ president. “The Patriot Corridor will revitalize freight rail in the region, reducing highway congestion and improving air quality.”
“Both NS and PAR are ready to begin making the infrastructure improvements,” said Wick Moorman, Norfolk Southern’s chief executive officer. “These improvements will enable us to deliver the speed and reliability that our customers expect and deserve. We commend the STB for recognizing the numerous benefits the Pan Am Southern joint venture creates for shippers doing business in New York’s Capitol Region and throughout New England.”
The focus of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass. (approximately 30 miles west of Boston).
PAR will transfer to the joint venture this trackage, along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS will transfer cash and other property valued at $137.5 million to the joint venture, $87.5 million of which will be invested within a three-year period in capital improvements on the Patriot Corridor.
Included in this investment is a new intermodal and automotive terminal in Saratoga County, N.Y., a new automotive terminal in Ayer, expansion of the existing intermodal terminal in Ayer, as well as track and signal upgrades on the Patriot Corridor.
These improvements will be implemented as expeditiously as possible, and will comply with certain conditions imposed as part of the Federal regulatory approval process.
— Wire reports
