Pan Am Southern

Pan Am Southern
Overview
Franchise(s)Berkshire and Eastern Railroad
Parent companyNorfolk Southern, CSX Transportation
Reporting markPAS
LocaleNew England, New York
Dates of operation2009–Present
Technical
Track gauge4 ft 8+1⁄2 in (1,435 mm) standard gauge

Pan Am Southern, LLC (reporting mark PAS)[1] is a freight railroad jointly owned by Norfolk Southern Railway (NS) and CSX Corporation. PAS is independently operated by the Berkshire and Eastern Railroad, a subsidiary of Genesee & Wyoming. PAS owns trackage known as the Patriot Corridor between Albany, New York, and the Boston, Massachusetts, area, utilizing rail lines formerly owned by the Fitchburg Railroad and later on the Boston and Maine Railroad. It was previously operated by PAR subsidiary Springfield Terminal Railway.

History

2008–2022

Westbound train on Pan Am Southern in Zoar, Massachusetts led by Norfolk Southern ES40DC 7613

On May 15, 2008, Norfolk Southern Railway announced that it had come to an agreement with Pan Am Railways to "create an improved rail route between Albany, N.Y., and the greater Boston, Mass., area called the 'Patriot Corridor'."[2][3][4]

On March 12, 2009, Norfolk Southern and Pan Am received STB approval of the deal.[5] As of May 1, 2009, each of the two companies owns 50% of Pan Am Southern. PAR's trackage between Ayer, Massachusetts and Mechanicville, New York was transferred to PAS and continued to be operated and maintained by PAR's Springfield Terminal Railway Company subsidiary. NS transferred to PAS cash and property valued at $137.5 million.[6]

Planned improvements to the route included track and signal upgrades, and expansion of terminals, including new automotive and intermodal terminals constructed in Ayer, Massachusetts and Mechanicville, New York.[7]

Planned lines were as follows:[8]

Post Pan Am acquisition by CSX

As a result of CSX's purchase of Pan Am Railways in June 2022, Pan Am Southern will no longer be operated by PAR. CSX inherited PAR's 50 percent stake in Pan Am Southern, with competitor Norfolk Southern owning the remaining half.[9] CSX and NS reached an agreement to have Pan Am Southern be operated by a new Genesee & Wyoming subsidiary named the Berkshire and Eastern Railroad, which the Surface Transportation Board (STB) approved.

The United States Department of Justice had recommended that the STB require CSX to sell its stake in PAS as a condition of the merger to prevent a reduction in competition.[10] Railroads in New England, including Vermont Rail System and Canadian Pacific Railway, had also objected to the plan for G&W to operate PAS, as it would give G&W an even more extensive network in the region than it currently has.[9] Canadian Pacific in particular asserted in a filing to the STB that the purchase would give CSX control of both of the primary east to west rail lines in New England and leave other companies at a competitive disadvantage.[11] The STB rejected those arguments.[12]

References

  1. ^ Railinc, Search MARKs Archived 2011-07-15 at the Wayback Machine, accessed October 2009
  2. ^ "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.
  3. ^ a b Norfolk Southern Railway and Pan Am Railways (2008-05-16). "Introducing the Patriot Corridor" (PDF). Norfolk Southern Corp. Retrieved 2008-05-16.
  4. ^ The Associated Press (2008-05-15). "2 railroad freight companies combine effort". AP Business News. Worcester Telegram & Gazette. Retrieved 2008-05-16.
  5. ^ US Board Approves Joint Ownership Of Pan Am Southern LLC, CNN Money, http://money.cnn.com/news/newsfeeds/articles/djf500/200903102012DOWJONESDJONLINE000756_FORTUNE5.htm[permanent dead link‍], 3/12/09
  6. ^ Pan Am Railways and Norfolk Southern Receive Approval to Improve Rail Service in New York and New England, http://www.nscorp.com/nscportal/nscorp/Media/News%20Releases/2009/pan-am.html, 3/12/09
  7. ^ "Pan Am's second takeoff". Trains Magazine. Kalmbach Publishing. January 2010.
  8. ^ "Norfolk Southern Railway Company, Pan Am Railways, Inc., er al.-Joint Control and Operating/Pooling Agreements-Pan Am Southern". Surface Transportation Board. June 26, 2008. Archived from the original on 2011-06-15.
  9. ^ a b Luczak, Marybeth (March 18, 2021). "Vermont Rail System Contests Pan Am/CSX Deal". Railway Age. Retrieved September 13, 2021.
  10. ^ Stephens, Bill (August 26, 2021). "Justice Department raises competitive concerns over CSX-Pan Am merger". Trains. Retrieved September 13, 2021.
  11. ^ "Rail News - CP: CSX-Pan Am merger threatens competition on Hoosac Tunnel route". Progressive Railroading. September 1, 2021. Retrieved September 13, 2021.
  12. ^ "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.