CSX Receives Approval From Surface Transportation Board to Acquire Pan Am Railways
April 14 2022 - 6:52PM
CSX Corp. (NASDAQ: CSX) today announced that the Surface
Transportation Board (STB) approved CSX’s application to acquire
Pan Am Railways, Inc. (Pan Am). CSX will move forward with the
acquisition with a planned closing date of June 1, 2022, at which
time CSX will acquire control of Pan Am.
“CSX is pleased that the STB approved the proposed acquisition
of Pan Am and has recognized the significant benefits this
transaction will bring to shippers and other New England
stakeholders,” said president and chief executive officer, James M.
Foote. “We look forward to integrating Pan Am, their employees and
the rail-served industries of the Northeast into CSX and to working
in partnership with connecting railroads to provide exceptional
supply chain solutions to New England and beyond.”David A. Fink,
president of Pan Am Railways said: “This much anticipated decision
paves the way for an exciting new chapter for Pan Am customers and
our employees as we begin our transition to the CSX team.”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.
With this transaction, New England will benefit from CSX’s track
record as a leader in environmental performance. CSX will operate
Pan Am with a more reliable and more fuel-efficient fleet,
significantly reducing fuel consumption and improving rail’s
environmental footprint in the region.
Passenger and commuter carriers in New England will benefit as
the company is committed 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.
Goldman Sachs & Co. LLC acted as financial advisor and Davis
Polk & Wardwell LLP acted as legal advisor to CSX in connection
with the transaction.
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:Matthew Korn, CFA, Head of Investor
Relations, Service Measures & Pension904-366-4515
Bryan Tucker, Corporate Communications855-955-6397
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