CSX has filed a revised application to the US Surface Transportation Board (STB) under the previously announced agreement to purchase New England’s Pan Am Railway system.
The supplemented application comprises all the additional details related to the proposed deal, which was requested by the STB in its ruling on 26 May 2021.
Subject to regulatory review and approval by the STB, the terms of the deal have previously not been revealed.
The acquisition is expected to offer benefits to stakeholders in New England and beyond.
For bolstering competition and strengthening the rail network, CSX has also signed agreements with other rail operators and firms operating in the region.
CSX president and CEO James Foote said: “The proposed transaction is an ‘end-to-end’ acquisition that will integrate the New England rail network owned by Pan Am into CSX’s national rail network, creating seamless single-line service.
“Adding Pan Am to our network will extend the reach of our service to a wider customer base over an expanded territory, creating new efficiencies and market prospects for customers to capitalise on a robust pipeline of growth opportunities to move freight to, from and within New England.”
CSX plans to upgrade and renovate the Pan Am system during the upcoming five years.
As a result, the New England rail network will further become safer and efficient for functioning, communities, and passenger rail.
CSX will deploy a smaller, more dependable, and fuel-efficient fleet for Pan Am’s operations.
This will help to reduce fuel consumption and its environmental footprint.
Pan Am owns and runs a 1,931km rail network and holds an interest in the over-965km Pan Am Southern system.
In April 2021, CSX concluded the initial phase of a $525m rail deal with the Commonwealth of Virginia in the US.