CSX Corp. (NASDAQ: CSX) announced today that its proposed merger
with New England’s Pan Am Railway’s Inc. (Pan Am) gained additional
support from Maine Governor Janet Mills as well as four shippers,
two municipalities, and one member of the New York State Assembly
who all filed letters with the Surface Transportation Board (STB)
enthusiastically backing the deal.
The transaction will provide significant
benefits to shippers, passenger rail users, and local communities
as CSX integrates Pan Am into its best-in-class network. In
particular, as CSX connects more of New England with its existing
23-state network, which serves two thirds of the nation’s
population, CSX’s expected investment in infrastructure upgrades
will improve freight and passenger rail service and further enhance
the environmental sustainability of rail transportation in New
England by shifting truck traffic off the highway.
Governor Mills wrote to the STB of her strong
support for the merger, saying, “This transaction has the potential
to bring substantial benefits to Maine. The state of Maine relies
on rail traffic to deliver goods and support our economy. If the
transaction is approved, CSX has indicated that it will make
upgrades to track and locomotives to provide improved service,
extend positive train control on Amtrak's Downeaster, and make
other improvements to the rail network. These changes would benefit
Maine businesses and shippers that rely on freight rail to ship
products and goods and positively impact passenger rail
service.”
Mark Gasbarro, owner and president of
Massachusetts-based F&M Tool and Plastics, said his company
“looks forward to the improved service that we will receive from
CSX following the approval by the Surface Transportation Board of
the merger.”
Mr. Gasbarro’s company wasn’t the only one
adding support to the nearly 90 customers, elected officials, and
state and local governments that have already said this deal is in
the best interest of New England freight and passenger rail
transportation. In addition to F&M Tool and Plastics of
Leominster, MA, Brunswick Valley Lumber of Fredericton, New
Brunswick, Canada, and Cooperative Reserve Supply of North
Billerica, MA join a growing list of shippers that have publically
announced their support for the transaction. Saratoga Country, NY
and the City of Mechanicville, NY also joined the growing chorus of
support for the transaction.
In their letter of support to the STB, Brunswick
Valley Lumber noted that the partnership with CSX will allow them
to “implement new supply chain solutions and market opportunities,”
while enhancing the company’s competitiveness through “lower costs,
better service, and improved access to the North American rail
network.”
Touting CSX’s historical infrastructure
investments, Tony Gentile, general manager of Cooperative Reserve
Supply, said CSX’s standards of service performance will lead to
“higher velocity, faster equipment turns, and greater consistency”
that should “enhance [their] competitiveness.”
On the municipal level, Saratoga County (NY)
Administrator Steve Bulger highlights in his letter that freight
railroads are oftentimes “the lifeblood” for communities with large
and small businesses relying on the services they provide to
connect with markets across the country and around the world. A key
benefit of the proposed transaction, Bulger notes, is that CSX will
“enhance competition through lower costs, better service and
improved access” to the rail network in the eastern United
States.
Mechanicville (NY) Mayor Dennis Baker sees the
deal as a way to increase freight rail service to his community and
capitalize on the financial resources CSX brings to the table to
undertake “much needed infrastructure improvements” across Pan Am’s
rail network.
Assemblywoman Carrie Woerner, a member of the
New York State Assembly from New York’s 113th Assembly District,
encouraged the STB to fairly review the transaction, stating in her
letter: "I support this proposed acquisition and believe my
constituents will benefit from its adoption.”
CSX filed an expanded application with the STB
on July 1, 2021 as part of an agreement to acquire Pan Am Railways
and is awaiting approval.
Copies of the aforementioned support letters and
additional information on the merger can be found by visiting
NEFreightRail.com.
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).
Forward-looking Statements
This information and other statements by the
company may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act with respect to,
among other items: projections and estimates of earnings, revenues,
margins, volumes, rates, cost-savings, expenses, taxes, liquidity,
capital expenditures, dividends, share repurchases or other
financial items, statements of management's plans, strategies and
objectives for future operations, and management's expectations as
to future performance and operations and the time by which
objectives will be achieved, statements concerning proposed new
services, and statements regarding future economic, industry or
market conditions or performance. Forward-looking statements are
typically identified by words or phrases such as “will,” “should,”
“believe,” “expect,” “anticipate,” “project,” “estimate,”
“preliminary” and similar expressions. Forward-looking statements
speak only as of the date they are made, and the company undertakes
no obligation to update or revise any forward-looking statement. If
the company updates any forward-looking statement, no inference
should be drawn that the company will make additional updates with
respect to that statement or any other forward-looking
statements.
Forward-looking statements are subject to a
number of risks and uncertainties, and actual performance or
results could differ materially from that anticipated by any
forward-looking statements. Factors that may cause actual results
to differ materially from those contemplated by any forward-
looking statements include, among others; (i) the company's success
in implementing its financial and operational initiatives; (ii)
changes in domestic or international economic, political or
business conditions, including those affecting the transportation
industry (such as the impact of industry competition, conditions,
performance and consolidation); (iii) legislative or regulatory
changes; (iv) the inherent business risks associated with safety
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affecting the company; (vi) natural events such as severe weather
conditions or pandemic health crises; and (vii) the inherent
uncertainty associated with projecting economic and business
conditions.
Other important assumptions and factors that
could cause actual results to differ materially from those in the
forward-looking statements are specified in the company's SEC
reports, accessible on the SEC's website at www.sec.gov and the
company's website at www.csx.com.
Contact:Bill Slater, Investor
Relations904-359-1334Bryan Tucker, Corporate
Communications855-955-6397
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