Posts Tagged ‘Berkshire & Eastern’

CSX Willing to Give up PAS Ownership

September 11, 2021

CSX CEO James Foote said during a conference this week that his company is open to giving up its half ownership of Pan Am Southern if it is allowed to acquire Pan Am Railways.

PAS ownership is currently split between Norfolk Southern and Pan Am. PAS provides NS with access to Boston.

CSX has proposed keeping its PAS ownership but giving operating control of it to a neutral party, a subsidiary of short line railroad conglomerate Genesee & Wyoming.

However, some critics of the CSX-Pan Am deal have argued that the G&W subsidiary – Berkshire & Eastern – is not necessarily a neutral party.

Speaking to the North American Rail Shippers conference on Thursday, Foote said, “It was our partner in that initiative that thought we should do it this way.”

PAS oversees the former Boston & Maine west of Ayer, Massachusetts, and a north-south route along the Connecticut River in Vermont, Massachusetts, and Connecticut.

Among those opposing CSX plans for PAS are the U.S. Justice Department, Canadian Pacific, and Vermont public officials.

All have said the manner in which CSX has proposed to handle PAS raises competitive concerns, saying CSX is already the dominant freight railroads in New England.

Foote said he is baffled by why CP wants to route its New England traffic through the Hoosac Tunnel, which cannot accommodate double-stack intermodal traffic.

 “We’ve got a super deluxe double-stack railroad, but they don’t like it for some reason,” Foote said about his company’s Boston & Albany route.

CSX Describes Plans for Pan Am

May 3, 2021

In a filing with the U.S. Surface Transportation Board, CSX has detailed its plans to rebuild regional carrier Pan Am Railways once it acquires it.

The plans include rebuilding the mainline over a five-year period, getting rid of older locomotives and installing positive train control over the full length of Pan Am track used by Amtrak’s Downeaster service between Boston and Brunswick, Maine.

Track that is now limited to 10 miles per hour will be upgraded to 25 mph standards. Most of this trackage is outside of lines used by Amtrak of Massachusetts Bay Transportation Authority commuter trains and tends to be in Maine.

Yard tracks will be rebuilt to reduce derailments and improve yard operations.

CSX did not say how much its track rehabilitation program for Pan Am will cost.

The CSX filing said Pan Am has 102 locomotives whose average age is 40.6 years. The locomotive plan calls for using higher horsepower road locomotives that will enable the Pan Am fleet to be reduced in number.

Thirty-three Pan Am locomotives will be sold to Genesee & Wyoming’s Berkshire & Eastern, the designated operator of the 425-mile Pan Am Southern network jointly owned by Pan Am and Norfolk Southern.

CSX plans to keep Pan Am’s four-axle units but many of the six-axle units are General Electric C40-8s and C40-8Ws that CSX pared from its own roster years ago.

All of Pan Am’s locomotive and railcar shops will be kept, CSX said.

In time, CSX expects to operate fewer but longer trains over Pan Am, particularly after track is rebuilt for higher speeds.

The CSX-Pan Am merger is currently under review by the STB and CSX hopes to finish the transaction by Feb. 18, 2022, with a takeover date of March 20, 2022.