CSX to Acquire Pan Am Railways in New England
November 30 2020 - 4:02PM
CSX Corp. (NASDAQ: CSX) today 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, said: “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.”
Terms of the transaction were not disclosed. The
transaction is subject to regulatory review and approval by the
Surface Transportation Board.
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.
About CSX
CSX, based in Jacksonville, Florida, is a
premier transportation company. It provides rail, intermodal and
rail-to-truck transload services and solutions to customers across
a broad array of markets, including energy, industrial,
construction, agricultural and consumer products. For nearly 200
years, CSX has played a critical role in the nation’s economic
expansion and industrial development. Its network connects every
major metropolitan area in the eastern United States, where nearly
two-thirds of the nation’s population resides. It also links more
than 230 short-line railroads and more than 70 ocean, river and
lake ports with major population centers and farming towns alike.
More information about CSX Corp. and its subsidiaries is available
at www.csx.com. Like us on Facebook
(http://facebook.com/OfficialCSX) and follow us on Twitter
(http://twitter.com/CSX).
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Contact:Bill Slater, Investor
Relations904-359-1334
Bryan Tucker, Corporate Communications855-955-6397
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