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STB hearing on CSX/PanAm on live right now

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STB hearing on CSX/PanAm on live right now
Posted by Lithonia Operator on Thursday, January 13, 2022 9:24 AM

Still in training.


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Posted by Lithonia Operator on Thursday, January 13, 2022 8:00 PM

I watched a few hours of it. It was quite interesting.

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Posted by Convicted One on Thursday, January 13, 2022 11:55 PM

What did you learn? Hmm

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Posted by Lithonia Operator on Friday, January 14, 2022 8:30 AM

One thing I learned is that the STB chairman is not convinced that the proposed operation of Pan Am Southern by Genessee & Wyoming's Berkshire & Eastern is really a hands-off situation in regard to PAS equal-owners CSX and NS. CSX and NS will still own the line, and they two alone picked G & W; and it was not put out to bid.

It also became clear that CSX has no interest in spending $ to raise the clearance in the Hoosac Tunnel (which is on the PAS line).

My impression is that NS will have the right to run one double-stack train of up to 9000 feet per day over CSX's existing Boston & Albany line. The chairman raised the concern about what happens if in the future NS needs to run more trains than that; this question did not get answered, at least while I was watching.

I also learned that a MA legislator from North Adams really hates the Pan Am management! From what I know, it's with good reason.

My overall impression so far, though, is that the deal will probably be allowed to go through. I had a sense that some STB members were just sorta going through the motions of being diligent, but were already inclined to vote yes.

CSX plans to begin work on $100mil in upgrades right off the bat if the deal goes through.

No shippers at all oppose the deal. And CSX has satisfied the concerns of Amtrak.

The hearing continues today. Check it out. (BTW, some of the CSX responses are wrapped in BS, but one would expect that.)

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Posted by Lithonia Operator on Friday, January 14, 2022 8:41 AM

The link for today's part of the hearing is this:

https://www.youtube.com/watch?v=L4CgAk8VLfo

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Posted by Convicted One on Friday, January 14, 2022 9:41 AM

Sincerely, thanks for the detailed reply!!  Wink

I guess I was out of step? For whatever reason I thought that NS had just worked out some kind of arrangememt with PanAm, similar in scope to what they had with KCS on the Meridian speedway.

 

It was a surprise to me to see CSX even brought up.

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Posted by CSSHEGEWISCH on Friday, January 14, 2022 10:03 AM

One interesting question concerns the half interest in Pan Am Southern that CSX would get in the merger.  If CSX is forced to divest, who else would be interested in picking it up?

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by Lithonia Operator on Friday, January 14, 2022 11:15 AM

Convicted One

Sincerely, thanks for the detailed reply!!  Wink

I guess I was out of step? For whatever reason I thought that NS had just worked out some kind of arrangememt with PanAm, similar in scope to what they had with KCS on the Meridian speedway.

 

It was a surprise to me to see CSX even brought up.

 

As it stands now, NS and PanAm jointly own PanAm SOUTHERN. If the  acquisition happens, CSX will be NS's new equal partner in PanAm Southern, which will operated by G&W's Berkshire and Eastern. PanAm will become a part of CSX, and AFAIK will lose its name, just be CSX.

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Posted by Convicted One on Friday, January 14, 2022 11:35 AM

So, would it be fair to say this entire undertaking is mostly a ploy to prevent NS  from acquiring the whole enchilada?

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Posted by Lithonia Operator on Friday, January 14, 2022 5:45 PM

Convicted One

So, would it be fair to say this entire undertaking is mostly a ploy to prevent NS  from acquiring the whole enchilada?

I guess the PanAm Southern brouhaha may come down to that. I dunno.

But the CSX bid to acquire PanAm seems to be its own thing, aimed at tapping into northern NewEngland traffic, and reach the ports of Portsmouth NH, Portland ME and (eventually) St. John NB.

 

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Posted by MidlandMike on Friday, January 14, 2022 9:03 PM

Lithonia Operator
My impression is that NS will have the right to run one double-stack train of up to 9000 feet per day over CSX's existing Boston & Albany line. The chairman raised the concern about what happens if in the future NS needs to run more trains than that; this question did not get answered, at least while I was watching.

In NewsWire today they said the extra double-stack cars could be single stacked as they are presently doing at Mechanicsville to go thru Hoosac Tunnel route.

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Posted by Lithonia Operator on Saturday, January 15, 2022 8:04 AM

The hearing is over. The "record remains open" for another week. How long is it likely to be now for the Board to make its decision?

 

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Posted by taracer71 on Saturday, January 15, 2022 10:49 AM

Convicted One

So, would it be fair to say this entire undertaking is mostly a ploy to prevent NS  from acquiring the whole enchilada?

 

PanAm Railways was put up for public bid by its owner, you can be sure that PAR went to NS before that. I'm sure they thought NS would buy due to their investment and partnership in PAS. So not a ploy on CSX's part.

NS, still in the cut cut cut phase of PSR, declined to buy and allowed CSX to win a decent prize.

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Posted by Lithonia Operator on Tuesday, January 18, 2022 9:01 PM

Still in training.


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