CSX Acquisition of Pan Am Railways

newpylong wrote: ↑Fri Jan 07, 2022 8:37 am My personal opinion of the outfit aside, the whole notion is rather irrelevant. If the VRS wanted that, and believed it was their best option, that would likely have been what the STB is reviewing, not rights to Deerfield.

Reading through the briefs that were filed earlier this week, it looks like what VRS wants are two things:
1) The right to connect Bellows Falls to White River Jct for overhead traffic without being dependent on NECR/B&E haulage, and
2) The right to come and get cars at East Deerfield that have been delayed beyond a couple of days or to deliver cars to East Deerfield that haven't been picked up in a couple of days.

That way they're not stuck waiting on someone else's short crews or slow service. Clearly CSX and (possibly after being strongly encouraged) GWI feel that's reasonable. It's possible that represents a fallback position for VRS from their initial ask in negotiations, but it seems to have been accepted as a reasonable compromise by all concerned.

Here are the details of the CSX-MWRA agreement: https://dcms-external.s3.amazonaws.com/ ... 303489.pdf

A couple of excerpts:

Track Upgrade. CSXT shall provide all labor, materials, design and other services, and all else necessary to upgrade, and shall upgrade, the Worcester Main Line tracks and track structures located within the Wachusett Reservoir Watershed from Milepost 6 to Milepost 13.58 (the "Reservoir Segment") so that track conditions satisfy or exceed the minimum requirements to permit the Reservoir Segment to be classified at all times as Federal Railroad Administration Class 3 ("FRA Class 3") track. Such upgrade work shall also include, without limitation:
(i) furnishing and installing new continuous welded rail of 1151b or greater section weight, sufficiently ballasted and anchored to prevent buckling;
(ii) replacing necessary ties and roadbed resurfacing;
(iii) furnishing and installing dragging equipment and hot bearing detectors (collectively, "defect detectors") at locations on the Worcester Main Line at or proximate to either end of the Reservoir Segment sufficient to detect irregularities and allow a train to safely stop; and
(iv) furnishing and installing new guard rails at the locations within the Reservoir Segment where guard rails are currently installed. (All requirements under this Paragraph 1 ( a) shall collectively be referred to as the "Upgrade Work".) The Upgrade Work shall be performed in a good and workmanlike manner, in accordance with all applicable laws and regulations and industry standards, and at CSXT' s sole cost and expense. Upon Consummation of the Transaction and CSXT' s final inspection of the Worcester Main Line track, the latter of which will be completed no more than two months after such Consummation of the Transaction, CSXT shall provide the Parties with a detailed schedule for the Upgrade Work. The Upgrade Work shall begin within six (6) months of Consummation of the Transaction, and CSXT intends to complete such work within one (1) year after commencement.

and

Speed. Subsequent to completion of the Upgrade Work, CSXT agrees that all trains, locomotives, self-propelled, on-track repair or construction equipment, and hi-rail vehicles shall operate at speeds at or below 25 miles per hour within the Reservoir Segment. CSXT shall ensure compliance with this requirement by all trains, locomotives and hi-rail vehicles operating over the Reservoir Segment.

and

Monthly Report. On the 15th day of each month, beginning 90 days after the Consummation of the Transaction, CSXT shall provide via email a Monthly Report to MWRA disclosing and describing the type and quantity of all items, materials and commodities, including but not limited to pollutants and hazardous materials, that were transported through the Reservoir Segment during the prior month.

Questions: how will CSX (and NS) handle 4 daily road freight movements on this single track 30 mile line that has no passing sidings of sufficient length? I don't know if Ayer or Worcester has spare capacity to hold a 9,000 foot train while waiting for an opposing move. Also I'd guess NS has to share info re: any hazardous material transported by 22K/23K through the reservoir area?

That segment saw up to 10 trains per day back in the 90's so there must be a way to handle the additional traffic.

It was 30 MPH then and the Clinton siding was used daily. I suspect both will become a reality again...with Clinton being extended, and either a CTC or PTC implementation to replace TWC.

Track speeds make a big difference in capacity. What takes nearly 3 hours to traverse at 10mph today will likely be cut down to a single hour. Even if you allow for crew changes and congestion at either Ayer or Worcester, and say a total of 3 hours of occupancy on the line, that allows for 8 trains a day without a siding - assuming no overlapping occupancy (following moves). If they fleet trains and/or improve capacity with signals that capacity grows.

MWRA is shooting the Commonwealth in the foot by requiring all trains to go 25 mph. If passenger rail ever happens I hope they refile to upgrade the speeds for the passenger side.

jamoldover wrote: ↑Fri Jan 07, 2022 9:01 am

newpylong wrote: ↑Fri Jan 07, 2022 8:37 am My personal opinion of the outfit aside, the whole notion is rather irrelevant. If the VRS wanted that, and believed it was their best option, that would likely have been what the STB is reviewing, not rights to Deerfield.

Reading through the briefs that were filed earlier this week, it looks like what VRS wants are two things:
1) The right to connect Bellows Falls to White River Jct for overhead traffic without being dependent on NECR/B&E haulage, and
2) The right to come and get cars at East Deerfield that have been delayed beyond a couple of days or to deliver cars to East Deerfield that haven't been picked up in a couple of days.

That way they're not stuck waiting on someone else's short crews or slow service. Clearly CSX and (possibly after being strongly encouraged) GWI feel that's reasonable. It's possible that represents a fallback position for VRS from their initial ask in negotiations, but it seems to have been accepted as a reasonable compromise by all concerned.

Hit the nail on the head here. VRS was in a tight position with customers including OMYA, Margis, and even the feed mills, on why traffic wasn't being moved. Currently, most CSXT traffic, if not all, is going via Whitehall, NY to CPRS, and then to Kenwood to CSXT, just to bypass the Pan Am issue. Traffic bound for both CSXT and NS has sat up to two weeks if not more, at Hoosick Jct, not being picked up by Pan Am.
This is a good thing for the VRS to be able to haul their own traffic between Bellows Falls and White River as needed, and limited times to do so between Bellows Falls and East Deerfield. Whether it pans out or not with the buyout, time will tell, but it would be nice to see rather than be at the strangle hold of two other railroads that don't want to move traffic. Though, to be fair, NECR is still miles ahead of Pan Am when it comes to that. (And I've personally dealt with Pan Am in several locations in my career, absolutely isn't the fault of the train crews, at all!).

It's for those exact reasons why everyone thought it was ridiculous that the VRS was an opponent of this transaction. I rather take the chance of possibly losing a routing option as long as my freight continues to move.

The objection was nothing more than a ploy to gain long desired concessions (trackage rights to connect the WACR and GMRC). Having the option to go to Deerfield directly was a bonus. Shrewd but well played.

I don't think CSX should agree to a 25mph speed limit in the Reservoir segment. Perhaps for trains with 1 or more hazmat cars. Why limit a hirail truck to 25? Even if a locomotive went in the drink the diesel spill would be contained before it became a drink.

If I were the MWRA I would have aksed for non-toxic ties and prohibition of pesticides and herbicides in the Reservoir watershed.

Albert Bros scrap metal processor of Waterbury CT has offered its support of the acquisition but with two "concerns" (they look like conditions to me).

First, we need assurance and a guarantee that CSXT will maintain service to Albert Bros. facility. We have heard from other rail shippers whose service was cut off by the acquiring Class 1 rail line because of low volume. We are interested in growing our rail volume but we need to see service improvements in order to make that commitment. As a point of reference, Albert Bros. currently owns and leases over 20 railcars and we are willing to make additional investments along with additional business.

Second, we need to know that the CSXT will be responsible for the rail line and rail bridge that crosses the Naugatuck River before entering our facility. Pan Am currently has the responsibility to maintain them. Without that commitment, we would effectively be out of business.

Note that Albert Bros is somewhat disenchanted with Pan Am's current service level:

The Pan Am has historically had below par service both in the number of available switches and the extended time taken to move the cars to their switching yard and then switch them over to the CSX or Norfolk Southern.

It doesn't appear though that Albert Bros understands that B&E/PAS will be directly servicing their facility instead of CSX.

https://dcms-external.s3.amazonaws.com/ ... 303493.pdf

Nor that they can simply look at the easements/deeds on their property to see who owns the tracks on top of the land in regards to maintenance. In most cases, yes the railroad does.

The other condition seems reasonable.

Regarding the Reservoir; what would have happened "back in my day", i.e. 70 years ago, when riding the Camp Special (Pullmans added to the State of Maine) up to Meredith NH, if I, or one of my "camper colleagues", had to "take a tinkle" while passing through this watershed?

Riding same in line space to Portland, circa '59, I do not recall the Porter saying not to use the "facility" in a 14-4 "--Point" until, say, a half hour after leaving Worcester.

Attitudes about drinking water and sewage management were, shall we say, a bit different back then. It was widely accepted that "dilution is the solution" and municipalities thought nothing of discharging raw sewage directly into bodies of water. In the town where I grew up, they discharged into the ocean. My mom remembers seeing all sorts of nasty things coming out of the discharge pipe and floating in the water when she went to the beach as a kid, and people just accepted it and swam in the water and presumably got the water in their mouths occasionally... so perhaps the water authority in Massachusetts figured a little tinkle here and there was no big deal.

Maine Central's Mountain Division ran along the shore of Sebago Lake. That lake supplies drinking water to most of the greater Portland area. I imagine passenger trains on that line might've added the occasional dose of yellow liquid to the lake, too.

None of the billions of tons of biomass (fish, birds, animals, and yes humans) in the watershed ever defecate into the reservoir's waters, you know. And there is never any potentially harmful discharge of salt, fuel, oil, trash, and other materials into the water from the many roads and highways that parallel and cross the reservoir. Nope, it's those big bad trains that are the threat. Uh huh.