CSX Corp. (NASDAQ: CSX) today announced that it submitted an
amended and supplemented application to the Surface Transportation
Board (STB) as part of the previously announced agreement to
acquire New England’s Pan Am Railway’s Inc. (Pan Am). The amended
application provides all of the additional details of the proposed
transaction requested by the STB in their May 26, 2021 ruling.
James M. Foote, president and chief executive
officer of CSX said: “CSX is pleased to submit an expanded
application for the acquisition of Pan Am Railways, which explains
the tremendous benefits of the proposed transaction for
stakeholders in New England and beyond.
“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. This will provide substantial benefits to
shippers with low-cost, environmentally-friendly rail service with
truck-like reliability.
“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 capitalize on a robust pipeline of growth
opportunities to move freight to, from and within New England.”
David A. Fink, president of Pan Am Railways
said: “Pan Am remains excited about this merger with CSX, a North
American leader in rail-based freight transportation. We have
continued to receive support from our customers about the
transaction as they know that CSX’s investment in the region will
benefit not only New England shippers but also those who will have
new access to their goods and products through the direct
connection into CSX’s national rail network.”
The combination of CSX and Pan Am provides
benefits to many stakeholders in New England, as evidenced by the
over 80 letters of support that shippers, elected officials and
business organizations have submitted to the STB. CSX has also
worked to reach agreements with other rail operators and
organizations in the region to ensure that the transaction results
in enhanced competition and a strengthened rail network in the
Northeast.
The proposed transaction would result in
significant investments in the region’s rail infrastructure. Over
the next five years, CSX would invest to upgrade and modernize the
Pan Am system, which will make the New England rail network more
efficient and safer for operations, communities and passenger
rail.
New England will also benefit from CSX’s track
record as leader in environmental performance. CSX will operate Pan
Am with a smaller, more reliable and more fuel-efficient fleet,
significantly reducing fuel consumption and improving rail’s
environmental footprint in the region.
CSX’s operating model will benefit passenger and
commuter carriers in New England as well as shippers as the company
commits to maintaining or improving existing passenger service that
operates on Pan Am. CSX has a long-standing history of working
cooperatively with Amtrak and other passenger rail partners as
evidenced by the significant improvement in contractual on-time
performance with Amtrak since CSX has implemented its new operating
model.
Headquartered in North Billerica, Massachusetts,
Pan Am owns and operates a highly integrated, nearly 1,200-mile
rail network and has a partial interest in the more than 600-mile
Pan Am Southern system. Pan Am’s network across New England has
access to multiple ports and large-scale commodity producers. The
transaction will expand CSX’s reach in Connecticut, New York and
Massachusetts while adding Vermont, New Hampshire and Maine to its
existing 23-state network.
Terms of the transaction were not disclosed. The
transaction is subject to regulatory review and approval by the
Surface Transportation Board.
Goldman Sachs & Co. LLC is acting as
financial advisor and Davis Polk & Wardwell LLP is acting as
legal advisor to CSX in connection with the transaction.
Information on the transaction, along with
supporters across the region, can be found at
www.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
and security; (v) the outcome of claims and litigation involving or
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
Relations904-359-1334
Bryan Tucker, Corporate Communications855-955-6397
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