CSX Acquisition of Pan Am Railways

I guess it all started with Prince Rupert, right? A tiny remote port that has developed into a west coast mini powerhouse. Why not do it on the east coast too? Maine is perfect for this. Prince Rupert was nothing much a while ago either and look at it now.

As far as Boston goes, there actually is a bunch of space just being wasted. Moran and the piers all along the Charlestown branch are vacant, in disrepair or grossly underutilized. And a direct connection to a Class 1 would be there if NS or similar buys Pan Am. Is that huge windmill dream project doing anything???

And on the south side there of course is Conley tantalizingly close to Track 61 and there was the large vacant MMT (Massport Marine Terminal) property that had a project planned including a new rail line that never got off the ground. They both could have been connected to CSX for Class 1 connections.

Just imagine a thriving Port of Boston with NS serving the north side and CSX serving the south side!

Let's face the reality that Massport loves Logan but not so much the Port and couldn't care less for reviving rail access at this point. It's a real lost opportunity.

Could NS get as excited about Charlestown as CP is about Searsport? Since they already have other east coast ports on their map probably not. I have mixed feelings about this Class 1 thing. Maybe if Pan Am is not sold to a Class 1 but another option like a Fortress they may be more aggressive in exploring the possibilities that a large Class 1 could care less about.

Build it up and expand it and then sell it to a Class 1 in a few years.

newpylong wrote: ↑Thu Sep 03, 2020 9:06 pm Except, no one in their right mind would sell it to them without an agreement to being the sole freight carrier in perpetuity until self releasing those rights.

And that right there, is why I don't think the state would ever be interested in owning the NH mainline. The state would want and should want full control, over who operates their rail line.

But isn't this a unique point in time where the rail line actually IS for sale, and the current owner has no interest in retaining freight rights? Pan Am is (apparently) selling; lock stock and freight rights; if the state of NH or any buyer buys they get it all.

Aside from twenty six miles of the (former) CV over which "The Vermonter" operates, the twenty some miles of the (former) B&M over which the "Downeaster" trains operate, the tourist roads - CSR and MWCR, what have passenger trains in New Hampshire have to do with who acquires Pan Am?

If some legislator, or passenger train advocacy group, thinks they can pre-condition the sale of Pan Am to satisfy their interests, I "wish I knew where they are coming from".

All Mellon cares is that he has enough "loose loot" to buy himself the "Ambassadorship of his choice" or a "Cabinet seat" (SecTrans, huh?) in a Trump Second Term. What I would think is paramount is that the buyer is prepared to commit the funds to build an at least an FRA Class3, and maybe even a 4, road, so that the shipping facilities God gave the region (primarily within Maine and the Atlantics) can be competitive handling goods to Midwest and beyond markets.

It also means good-paying Union jobs in a region that badly needs such - COVID notwithstanding.

In theory yes, NH could make an offer for the NH mainline since the railroad is up for sale but I don't see the state making an offer. Besides I think they are looking to sell the railroad as a whole, at least that's what it appears to be on the surface. I'm still not 100% convinced this railroad will be sold but if it does, I think it will be on the investor front, with the physical railroad being largely unchanged, time will tell.

Yes, the only right of ways the state of NH are going to obtain are those already petitioned for abandonement. They will not pay asking price for an active line.

Mr. Newpy, I would guess those lines to be sold include the likes of that from Concord to Laconia, along the West side of Lake Winnipesaukee (needed help from spell check on that), through Meredith and on to Plymouth. That's a line I knew from summer camp in Moultonborough '52-'55.

BTW, in order "to get to go home", you had to learn how to spell that aforementioned lake.

Pan Am, ownership goes up to Concord. The states ownership starts at the switch to the White Mountain Branch and goes Lincoln. Pan Am's ownership continues up the Northern to the Concord/Boscawen town line.

Regarding Searsport, CP seems serious about investing in the former BAR and turning Searsport into a substantial export point for Potash and Grain. I wonder if this potential is the basis for the rumor that NS is interested in the entire PAR mainline. Moving Midwestern grain closer to export markets than their competitor (and potentially gain a piece of the Potash market?) via PAS to Searsport could be quite lucrative for them.

Isn't there a pretty good grade descending from Rte. 1 down to the port?

Sob, Sob,

Wouldn't it be wonderful if the same cars used for the agricultural and chemical products we sell to Europe could be used to handle the "Beetles, Bennies, and Bimmers" they sell to us?

"Bring back the Boxcar"

But then, what else in new in railroading.

With regards to my previous question, "Why Maine?" it appears that we are collectively dumbfounded.

Lower labor costs and more available land were mentioned but these are factors that have always been true relative to Boston or New York. Not sure how the labor rates compare to Saint John or Halifax. Position closer to Europe is likewise unchanged from years ago.

I believe that something truly fundamental about the industry has changed. Panama Canal improvements are significant but perhaps there is something else. I wonder if free trade and electronic customs clearance have made cross border logistics easier. Problems with customs clearance (freight not passenger) might have been an issue that lead CP to divest the line across Maine.

Trade flows seem to have changed. Commerce with Europe is probably higher than it was years ago.

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gokeefe wrote: ↑Sat Sep 05, 2020 7:52 pm
Trade flows seem to have changed. Commerce with Europe is probably higher than it was years ago.

And as more trade moves further west from China to India, Thailand, Taiwan and Vietnam, the shipping lanes via the Suez Canal are the shortest routes to North American markets. That means eastern ports are the better option and of course the Northeast is the closest region as the shipping lanes go. Interesting how things are changing.

Very true. And in this case it seems as though the industry understands something that is fundamentally lost to us in this forum ... That is unusual for railroad.net. Although we certainly aren't the "leading edge" in general this place always seems to come up with the answer eventually.

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Mr. O'Keefe, you live up there; wouldn't it be great to have more good paying Union jobs for Longshoremen up your way?

That is why I hold if Searsport is to become "a player" amongst Atlantic maritime ports, there need be roads with FRA Class 3 trackage to serve such - and whoever gets Pan Am should be granted access to Searsport and in turn SOO/CP same to Portland. By access I mean to make rates and market services from each as a single line (Local).

And to have a chance of geting there that is why I hold:

"Topper=Authentic"