Pan Am Railways
Maine Central Railroad Company Portland Terminal Company Springfield Terminal Railway Company Stony Brook Railroad | |
Website | panamrailways |
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Pan Am Railways, Inc. (PAR) is a subsidiary of
The company is a subsidiary of CSX Corporation under rail subsidiary CSX Transportation since June 1, 2022,[1] Pan Am Railways former parent company was Portsmouth, New Hampshire-based Pan Am Systems. It was headquartered in Iron Horse Park in North Billerica, Massachusetts.[2]
Pan Am Railways parent Pan Am Systems was put up for sale in July 2020.[3] On November 30, 2020, CSX Corporation announced that it had signed a definitive agreement to purchase Pan Am Systems. The sale of Pan Am Systems to CSX underwent regulatory review by the Surface Transportation Board,[4][5] which approved the sale on April 14, 2022.[6] At midnight on June 1, 2022, CSX Corp began operating Pan Am Railways as a subsidiary of CSX Transportation; Pan Am Systems ceased operations.
History
Guilford
Beginning
Even as the B&M purchase was still pending, Guilford announced it intended to purchase the Delaware and Hudson Railway from its then owner Norfolk and Western Railway on September 1, 1981, marking the company's third acquisition.[10] The next month, Timothy Mellon made an offer of $500,000 for the entirety of the D&H's stock, which was identical to the amount the Norfolk and Western had paid to buy the D&H in 1968. Both the D&H's directors and Norfolk and Western accepted the offer, in part to remove a potential obstacle to the pending merger between the N&W and the Southern Railway.[7][11]
Expansion attempt
![](http://upload.wikimedia.org/wikipedia/commons/thumb/7/76/Pan_Am_Railways_MEC_507%2C_June_2021.jpg/220px-Pan_Am_Railways_MEC_507%2C_June_2021.jpg)
In 1985, Guilford entered into an agreement with Norfolk Southern Railway (NS) to run trains to St. Louis. NS was attempting to win approval of a plan to purchase Conrail from the U.S. government and proposed allowing Guilford to lease Conrail lines to St. Louis in order to restore competition that would be lost in the merger. The plan would have allowed Guilford to use the Conrail mainline from Toledo to Ridgeway, Ohio, and from Crestline, Ohio, to St. Louis. Guilford would also purchase 955 miles (1,537 km) of Conrail track and 1,300 freight cars from Norfolk Southern for $53M.[12] NS did not prevail in its attempt to purchase Conrail in 1985, and the Guilford plan was dropped. In 1987, Guilford also placed a bid to buy Southern Pacific.[13]
The paper industry provides the largest source of business, with chemicals, clay and pulp inbound, and finished paper outbound. But the railroad has been losing ground to other forms of transportation - particularly trucking. A 2008 report issued by the American Society of Civil Engineers rated Maine at 48th of the 50 states in volume of freight traffic that moves by rail.[14]
Delaware & Hudson bankruptcy
Guilford completed its acquisition of Delaware & Hudson Railway in 1984, purchasing the assets from
Pan Am Railways (2006–2022)
![](http://upload.wikimedia.org/wikipedia/commons/thumb/4/45/PanAmRailwaysHQ.jpg/220px-PanAmRailwaysHQ.jpg)
In 1998, Guilford bought the name, colors, and logo of
As of 2011, PAR employed 750 people and had a $40-million payroll.[18] The company continued to operate with subsidiary entities bearing the names of former railroads which over time formed the company. The company's assets were housed separately in these various subsidiaries for various reasons. For example, the Boston and Maine Corporation owned the railroad property itself while the Springfield Terminal branch operated the railroad (most of the company's employees were under the Springfield Terminal umbrella.) Meanwhile, the Maine Central entity owns rolling stock.
In 2011, PAR repainted two EMD GP9 locomotives into heritage schemes commemorating the company's predecessors; GP9s number 77 and 52 were repainted into the Boston and Maine maroon and gold "Minuteman" paint scheme and the Maine Central "Pine Tree Route" green and gold livery, respectively.[19] Both were sold to the Heber Valley Railroad in May 2018.[19]
Partnership with Norfolk Southern
![](http://upload.wikimedia.org/wikipedia/commons/thumb/f/f8/Pan_Am_5943_at_Plainville%2C_October_2020.jpg/220px-Pan_Am_5943_at_Plainville%2C_October_2020.jpg)
On May 15, 2008, NS announced that it had come to an agreement with PAR to "create an improved rail route between
Improvements to the route included track and signal upgrades, and expansion of terminals, including construction of new automotive and intermodal terminals in Ayer and Mechanicville.[24] In March 2012, the Federal Railroad Administration awarded a $2-million grant to the Massachusetts Department of Transportation for preliminary engineering on removing 19 obstacles to allow double stack container trains to use the Patriot Corridor route. The project included raising clearance by two feet in the 4.75-mile (7.64 km) Hoosac Tunnel.[25]
Disputes with local governments
The company was criticized for dumping used
CSX acquisition
Pan Am Railways parent Pan Am Systems was put up for sale in July 2020.
On March 25, 2021, after numerous letters questioning CSX's acquisition of Pan Am Railways parent Pan Am Systems from the Massachusetts Bay Transportation Authority, the Massachusetts Department of Transportation, the Commonwealth of Massachusetts, Vermont Rail System, as well as many other local political figures and community leaders from other New England states, the Surface Transportation Board ruled the acquisition as "Significant" meaning that a more rigorous review process would be necessary.[28]
On April 30, 2021, CSX submitted a 478-page plan of purchase outlining a broad range of topics, from implementations of track upgrades to the controversial issue of Norfolk Southern intermodal routing, as well as the fate of Pan Am's hodgepodge fleet of aging motive power, which is made up of EMD and GE locomotives from railroads such as Conrail, NS, CSX, the Milwaukee Road, and Kansas City Southern.[29]
On May 26, 2021, the federal regulators of the Surface Transportation Board rejected CSX's purchase application, deeming it "incomplete." The board cited "contradictions" and "lack of necessary information" to properly judge the acquisition, and therefore could not rule on the matter.[30][31] The STB accepted a revised merger application for consideration on July 30, allowing CSX to move forward with the acquisition. The decision determined that an environmental and historic review are unnecessary and establishes criteria for additional filings, public comments, and a deadline for a final Surface Transportation Board decision.[32][33]
On April 14, 2022, The Surface Transportation Board fully accepted the purchase by CSX Transportation of Pan Am Railways and 50% of Pan Am Southern. According to the board; CSX's control of Pan Am and subsequent merger of six of Pan Am's subsidiary railroads into CSX, subject to the voluntary commitments and settlement agreements to which the applicants have agreed, would not likely cause a substantial lessening of competition or create a monopoly or restraint of trade.[34][5]
"The Board found several key benefits flowing from the merger. It would result in much-needed capital investments in the Pan Am network, as well as more consistent maintenance. Also, the Board found that shippers would have additional marketing opportunities and more efficient single-line service, and CSX would have the opportunity to better compete for traffic moving via long-haul trucking. The Board also noted environmental benefits in the form of fuel efficiency and lower emissions resulting from CSX’s use of newer line-haul and switching locomotives, compared to Pan Am’s locomotives."
Routes
PAR's mainline ran from Mattawamkeag, Maine, to Mechanicville, New York, via the lines of the following former companies:
- MEC: European and North American Railway, MEC mainline
- B&M: B&M mainline, Lowell and Andover Railroad
- Boston & Lowell Railroad: Nashua & Lowell Railroad, Stony Brook Railroad
- Vermont & Massachusetts Railroad, Troy and Greenfield Railroad, Southern Vermont Railroad, Troy & Boston Railroad, Boston, Hoosac Tunnel & Western Railway
References
- ^ a b "CSX.com - CSX Completes Acquisition of Pan Am Railways". www.csx.com (Press release). June 1, 2022. Retrieved 2022-06-03.
- ^ "Transload and Warehouse Sites". panamrailways.com. Pan Am Railways. 2018. Retrieved December 1, 2020.
Pan Am's headquarters location at Iron Horse Park in North Billerica, MA.
- ^ a b "Maine's Biggest Railroad Is For Sale". MPBN.org. July 2020. Retrieved July 1, 2020.
- ^ "CSX to Acquire Pan Am Railways in New England" (Press release). Jacksonville, Florida: CSX Corp. November 30, 2020.
- ^ a b Luczak, Marybeth (November 30, 2020). "Definitive? CSX Acquiring Pan Am Railways". Railway Age.
- ^ "STB Approves CSX-Pan Am Combination". RailwayAge. April 14, 2022.
- ^ Toledo Blade. Retrieved October 12, 2021.
- ^ Cleaves, Herb (November 26, 1981). "Railroad Empire Growing". Bangor Daily News. Retrieved November 19, 2021.
- ^ Cleaves, Herb (July 8, 1983). "Two Railroads to Share New Management Team". Bangor Daily News. Retrieved November 19, 2021.
- ^ Associated Press (September 2, 1981). "Mellon buying 3rd losing railway". Pittsburgh Post-Gazette. Retrieved October 12, 2021.
- ^ Associated Press (October 21, 1981). "Timothy Mellon to buy Delaware-Hudson Rail". The Telegraph. Retrieved October 12, 2021.
- ^ "Firm Conditions Conrail Bid on Approval This Year." Los Angeles Times, June 6, 1985.
- ^ "COMPANY NEWS; Southern Pacific Has 5 Offers". The New York Times. Associated Press. November 25, 1987. p. D3.
- ^ "2008 Maine Infrastructure Report Card - Maine Section of the American Society of Civil Engineers". Maineasce.org. 2015-09-15. Archived from the original on 2008-12-03. Retrieved 2016-02-29.
- ISSN 0041-0934.
- ^ "Pan Am Railways merger family tree | Trains Magazine". Trains. Retrieved 2024-01-08.
- ^ Redmond, Lisa (1 April 2009). "Pan Am, three others fined in 2006 Ayer oil spill". Lowell Sun. Retrieved 2024-01-08.
- ^ Billings, Randy (19 May 2011). "On the right track? Rail officials, South Portland residents hope to forge solution to idling trains". The Forecaster. Archived from the original on 28 May 2011. Retrieved 21 May 2011.
- ^ a b Franz, Justin (May 17, 2018). "Heber Valley purchases Pan Am GP9s". Trains. Retrieved 2022-04-23.
- ^ "Pan Am Railways and Norfolk Southern Create the Patriot Corridor to Improve Rail Service and Expand Capacity in New York and New England" (Press release). Norfolk Southern Corp. 2008-05-15. Archived from the original on 2008-06-01. Retrieved 2008-05-15.
- ^ Norfolk Southern Railway and Pan Am Railways (2008-05-16). "Introducing the Patriot Corridor" (PDF). Norfolk Southern Corp. Retrieved 2008-05-16.
- ^ "2 railroad freight companies combine effort". AP Business News. Worcester Telegram & Gazette. Associated Press. 2008-05-15. Retrieved 2008-05-16.
- ^ "STB approves Pan Am Southern transaction". Railway Age. 11 March 2009.
- ^ "Pan Am's second takeoff". Trains Magazine. Kalmbach Publishing. January 2010.
- ^ "Olver, Kerry, Brown, Neal: Massachusetts Awarded $2 Million to Initiate Improvements Needed to Expand Freight Rail Service Into New England". Archived from the original on September 15, 2012. Retrieved May 21, 2012.
- ^ Ashline, Shelby (July 6, 2017). "Buckland Board of Health: What can we do about dumped railroad ties?". The Recorder.
- Trains Magazine. Retrieved 2021-03-28.
- ^ "Federal regulators put higher hurdle in front of CSX-Pan Am deal (updated)". Trains. Retrieved 2021-08-01.
- ^ "Rail News - CSX files amended application for proposed Pan Am acquisition. For Railroad Career Professionals". Progressive Railroading. Retrieved 2021-08-01.
- ^ "The Board Rejects as Incomplete the "Significant" Application Filed by CSXT & Pan Am in Control and Merger Proceeding". www.atlp.org. Retrieved 2021-08-01.
- ^ "Federal regulators reject CSX-Pan Am merger application as incomplete (updated)". Trains. Retrieved 2021-08-01.
- ^ "STB accepts updated CSX-Pan Am merger application". Progressive Railroading. Retrieved 2021-08-11.
- ^ "SURFACE TRANSPORTATION BOARD DECISION - Docket No. FD 36472" (PDF). Progressive Railroading. Retrieved 2021-08-11.
- ^ a b "Surface Transportation Board Press Release No. 22-22". www.stb.gov. Retrieved 2022-04-14.
- ^ "STB decision in CSX Corporation and CSX Transportation, Inc., et al.—Control and Merger—Pan Am Systems, Inc., Pan Am Railways, Inc., Boston and Maine Corporation, Maine Central Railroad Company, Northern Railroad, Pan Am Southern LLC, Portland Terminal Company, Springfield Terminal Railway Company, Stony Brook Railroad Company, and Vermont & Massachusetts Railroad Company, FD 36472 et al" (PDF). April 14, 2022.
External links
Media related to Pan Am Railways at Wikimedia Commons
- Official website
- Pan Am Railways photographs - NERAIL Photo Archive
- Guilford Rail Systems photographs - NERAIL Photo Archive