Pan Am Railways, For Sale/Acquisition/Merger?

Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.

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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby CN9634 » Sun Sep 18, 2016 2:41 pm

Fortress was a bidder.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby gokeefe » Sun Sep 18, 2016 5:57 pm

I'm very curious if Pan Am was ... and/or CSX/NS.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby newpylong » Sun Sep 18, 2016 7:36 pm

Not a shot CSX or NS was.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby F-line to Dudley via Park » Sun Sep 18, 2016 10:04 pm

gokeefe wrote:I'm very curious if Pan Am was ... and/or CSX/NS.


I doubt PAR the incorporated company and any sub-companies under its umbrella have anywhere close to the cumulative cash on-hand to have swallowed P&W whole. That would've taken Mellon dipping into his personal fortune via other holdings to come up with the funds to hold off the likes of Fortress, G&W, and others of that ilk. Something he certainly has more than enough resources to do, but at his age and with no railroader heirs in the family it's extremely improbable he'd have any interest in swinging for the fences like he did 3 decades ago when Guilford bought the MEC, B&M, and D&H in a 4-year acquisition blitz.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby bostontrainguy » Sat Oct 01, 2016 9:05 am

Late news that St. John is making big plans to expand its container facilities and is seeking better rail service. Now would NS consider acquiring all of Pan Am? What would it take? How much business would make it worthwhile?
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby F-line to Dudley via Park » Sat Oct 01, 2016 9:45 am

Expanded St. John still isn't within orders-of-magnitude large enough to stimulate any NS interest. The step-downs in freight traffic east of Ayer and north of Portland are still very steep despite prospects of more Irving action in the far north. Worcester County is still the easternmost extent where the Class I's see maximal profit margins. Projected Ayer growth is still going to outstrip the tippy-top growth that an expanded St. John port could ever throw down the coast, so nothing changes about the Class I calculus. The most we're talking is flushing a very sad-looking D1 with some very modest recovery via Irving. It breathes new life into 'Keag, which is unequivocally a very good thing. But breathing new life into 'Keag is still microscopic potatoes compared to Ayer, Portland, and Waterville IM and future traffic prospects coming up from the south, not north.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby newpylong » Sat Oct 01, 2016 1:21 pm

bostontrainguy wrote:Late news that St. John is making big plans to expand its container facilities and is seeking better rail service. Now would NS consider acquiring all of Pan Am? What would it take? How much business would make it worthwhile?


Never. That's a lot of mileage (and terrible physical plant) for one terminal.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby BostonUrbEx » Sat Oct 01, 2016 4:04 pm

If anything, I think St John panning out would mean NBSR being more interested in the old MEC. NBSR is probably the most qualified and likely railroad around to get Portland to Mattawamkeag back in shape and running well.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby CN9634 » Sat Oct 01, 2016 6:14 pm

F-line to Dudley via Park wrote:Expanded St. John still isn't within orders-of-magnitude large enough to stimulate any NS interest. The step-downs in freight traffic east of Ayer and north of Portland are still very steep despite prospects of more Irving action in the far north. Worcester County is still the easternmost extent where the Class I's see maximal profit margins. Projected Ayer growth is still going to outstrip the tippy-top growth that an expanded St. John port could ever throw down the coast, so nothing changes about the Class I calculus. The most we're talking is flushing a very sad-looking D1 with some very modest recovery via Irving. It breathes new life into 'Keag, which is unequivocally a very good thing. But breathing new life into 'Keag is still microscopic potatoes compared to Ayer, Portland, and Waterville IM and future traffic prospects coming up from the south, not north.


I'm doubtful on a full scale NS takeover but the Saint John expansion is leaps and bounds beyond anything close to Portland. As a comparison, Portland right now can handle one 1200 TEU ship at the berth and could at most handle two of those a week if they sparked some magical traffic.

http://www.joc.com/port-news/internatio ... 60922.html
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby F-line to Dudley via Park » Sun Oct 02, 2016 3:56 pm

BostonUrbEx wrote:If anything, I think St John panning out would mean NBSR being more interested in the old MEC. NBSR is probably the most qualified and likely railroad around to get Portland to Mattawamkeag back in shape and running well.


Fortress too. They bid on P&W, so you know they're going to be in the mix for a PAR bid. They've got the cash, Irving's got the cash, G&W's got the cash (though a much harder antritust case now that probably makes them non-preferred). And undoubtedly some out-of-region dark horse we never expected has the cash and the burning desire to make a play for it. All depends on who can fashion the best deals to hook themselves into first- or second-degree Class I traffic. PAR's got the direct hookup to NS and CSX in Worcester County, so that's a known-known big advantage. Value-for-bid $$$ amongst the acquisition players will ultimately come down to who's got the best chance to worm their way into CN or CP action, directly or through a friendly intermediary.

Irving certainly gets in much stronger position with St. John expansion, but be-all/end-all is still about who can best leverage synergies with multiples of the Big 4 Class I's surrounding the Northern New England perimeter.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby newpylong » Mon Oct 03, 2016 9:06 am

I wouldn't be so sure anyone is chomping at the bit to take over that trackage.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby johnpbarlow » Wed Oct 12, 2016 3:47 am

Pan Am has weighed in at the STB with a filing of support of the GWI acquisition of P&W given that Springfield Terminal and GWI have negotiated that ST/PAR's interchange with CSX at Barber's will be preserved:

Genesee & Wyoming Inc. ("GWl") and the Springfield Terminal Railway Company
("ST") have been engaged in discussions regarding the potential impacts of GWI' s acquisition of
the Providence and Worcester Railroad Company ("P&W'') in the above-referenced proceeding.
In order to resolve ST's concerns with such potential impacts, GWI has agreed that it will not
take or fail to take any actions that would adversely impact the ability of ST to interchange
traffic with CSX Transportation, Inc. at Barbers Station in Worcester, Massachusetts in violation
of: (a) the Providence and Worcester Railroad Company Grant of Trackage Rights, as amended,
dated June 30, 1989; or (b) applicable law. In addition, GWI has agreed to have any exemption
authority or Board approval of this transaction conditioned upon GWI's commitment reflected in
this letter. GWi's recognition of this condition is memorialized by the signature below.


I am puzzled about the grammatical nuance of the "...fail to take..." part of the sentence "...GWI has agreed that it will not
take or fail to take any actions that would adversely impact the ability of ST to interchange traffic with CSX Transportation..." but I think ST is saying CSX interchange will be business as usual if G&W takes over P&W.

Does this support letter also imply that PAS/PAR and NECR/GWI are reaching a meeting of the minds wrt Conn River trackage rights fees and Ts & Cs?

https://www.stb.gov/filings/all.nsf/ba7f93537688b8e5852573210004b318/4ba4c31ca6e5eadf852580490073fce5/$FILE/241736.pdf
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby Cowford » Wed Oct 12, 2016 12:43 pm

"take... any actions..." should be pretty obvious.

"fail to take any actions..." would cover such things as track maintenance, e.g., failure to maintain the track to the point that would trigger cargo restrictions or condemnation.
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby johnpbarlow » Wed Oct 12, 2016 2:52 pm

That makes sense! I don't know why but I just couldn't parse that sentence the first ten times I read it. Thanks!
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Re: Pan Am Railways, For Sale/Acquisition/Merger?

Postby YamaOfParadise » Wed Oct 12, 2016 2:57 pm

Basically, PAR/ST doesn't want them to do something PAR/ST would do themselves. :wink:
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