CSX said Thursday it will take over Pan Am Railways on June 1.
The Class 1 carrier received approval last week from the U.S. Surface Transportation Board to acquire Pan Am, which has a 1,200-mile route network in New England.
The merger will change the railroad scene in the region. Aside from CSX taking over Pan Am, Genesee & Wyoming subsidiary Berkshire & Eastern will operate the former Boston & Maine east of Ayer, Massachusetts.
That line, known as Pan Am Southern, will be owned 50-50 by CSX and Norfolk Southern.
CSX also gets Pan Am’s haulage rights to Saint John, New Brunswick, thus enabling it to compete with Canadian National and Canadian Pacific.
As part of the acquisition, CSX agreed to give Vermont Rail System trackage rights.
Amtrak will be allowed by CSX to operate trial intercity passenger service to Pittsfield, Massachusetts, from New York City.
During STB hearings on the merger, CSX said it would spend more than $100 million on infrastructure improvements to Pan Am track.
The STB did not issue a condition that the 147-year old Hoosac Tunnel be kept open. The tunnel has been subject to cave-ins in recent years.
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