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CSX to buy Pan Am Railways

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CSX to buy Pan Am Railways
Posted by Lithonia Operator on Tuesday, December 1, 2020 10:23 PM

https://www.newscentermaine.com/mobile/article/news/pan-am-railways-to-be-sold-to-florida-based-csx-corp/97-62c3d38f-1318-4773-b64d-0cf81a91d4ce?utm_campaign=snd-autopilot

If this pans out, and I'm guessing it will, this will gloriously end the sad Timothy Mellon era of the former Maine Central and B&M.

Now, I guess I don't know if those lines will "be" CSX; maybe The Pan Am name will remain, only CSX will run it. But I hope it gets fully integrated, and I can see blue and yellow engines up here. Pan Am has been mostly a pretty scuzzie operation. And although better in recent years, for a long time their public image was way beyond bad.

Still in training.


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Posted by Fred M Cain on Wednesday, December 2, 2020 5:57 AM

This is somewhat of a puzzle to me.  This would effectively add a second, parallel line from upstate NY to the Boston area through Hoosac Tunnel.  Doesn't NS have trackage rights over that line?  I wonder if they would issue a protest to the STB about this.

Personally, I'm against this.  Sounds like just another move to add what would effectively become a "redundent" route then "rationalize".

Regards,

Fred M. Cain

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Posted by kgbw49 on Wednesday, December 2, 2020 9:30 AM

One plausible scenario is that Pan Am Southern will go to Norfolk Southern.

One potential factor is Port St John in New Brunswick. Pan Am interchanges with the Easten Maine Railway-New Brunswick Southern Railway system at Mattawamkeag. Port St John is undergoing a $200+ million expansion that will allow it to berth 360 meter container ships in the 8,500-10,000 TEU size. The port throughput will go from about 75,000 TEU annually to about 330,000 TEU annually. That is about 900 containers per day in and out on average, which would be 4.5 trains per day of 100 wells each if they all go be rail.

With the shift of manufacturing out of China to South Asia, more trade will be coming via the Suez Canal and Mediterranean Sea. Port St John is the second closest port to the Strait of Gibraltar after Halifax.

It would take some clearance improvements and upgrading some line to 286,000-lbs from Bangor to Mattawamkeag, but there is the future potential for container service from Port St John to the Northeast and Midwest. It would be CSX's longest container route.

CP also accesses Port St John via the Eastern Maine Railway-New Brunswick Southern at Brownville Junction.

The port expansion is one reason - not the only reason, but one reason - that they purchased Central Maine & Quebec.

Time will tell but it will be interesting to watch.

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Posted by Flintlock76 on Wednesday, December 2, 2020 10:13 AM

Lithonia Operator
Pan Am has been mostly a pretty scuzzie operation. And although better in recent years, for a long time their public image was way beyond bad.

Honestly, I've always been puzzled why they called it "Pan Am."  If you're in a certain age bracket when you hear "Pan Am" the first thing you think of isn't railroading.  

And if you're in a really  special age bracket you might even think of this:  https://flyingcloudschinaclippers.blogspot.com/2016/08/china-clipper-calling-alameda-china.html

They might have been more popular if they said "Let's call it the Boston & Maine!  Why the hell not?"  Proud people, those New Englanders, they'd have loved it.

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Posted by BaltACD on Wednesday, December 2, 2020 10:41 AM

Flintlock76
 
Lithonia Operator
Pan Am has been mostly a pretty scuzzie operation. And although better in recent years, for a long time their public image was way beyond bad. 

Honestly, I've always been puzzled why they called it "Pan Am."  If you're in a certain age bracket when you hear "Pan Am" the first thing you think of isn't railroading.  

And if you're in a really  special age bracket you might even think of this:  https://flyingcloudschinaclippers.blogspot.com/2016/08/china-clipper-calling-alameda-china.html

 

They might have been more popular if they said "Let's call it the Boston & Maine!  Why the hell not?"  Proud people, those New Englanders, they'd have loved it.

I think at the time it became Pan Am, the thought was just name it anything but Guilford.

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Posted by NKP guy on Wednesday, December 2, 2020 11:20 AM

   It's worth remembering that Guilford/Pan Am fought tooth & nail to keep Amtrak's Downeaster from using their tracks.  For long years readers of railroad news in Trains and elsewhere marvelled at the stubbornness and opposition of this company and their complete disregard of good public relations.

   I'm not privy to the actual numbers, but I'll venture that of the total cost to rehabilitate this line for passenger service, very little came from the company that owned it and afterwards could profit from it itself.  At the least, it's a very uncreative company.

   I'll also note that having the Downeaster serve Maine has been a success that's benefitted many people and helped boost the state's economy.

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Posted by MMLDelete on Wednesday, December 2, 2020 11:29 AM

The Pan Am trade name and logo were available, I guess from whatever paper entity of the airline still existed. Guilford bought that identity. I'm pretty sure that Balt is correct; the name "Guilford" had become, a least here in Maine, pretty much the same as "$#!t." So they bought his respected name. I thought was quite silly at the time, but I guess it did help them change their image somewhat.

I also immediately wondered about the northern (Hoosac Tunnel) line, which seems in some ways to now become uselessly redundant. I cannot remember from the last time (many years ago) I followed those tracks, how much online business there is; I don't think there's a lot.

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Posted by MMLDelete on Wednesday, December 2, 2020 11:40 AM

NKP guy

   It's worth remembering that Guilford/Pan Am fought tooth & nail to keep Amtrak's Downeaster from using their tracks.  For long years readers of railroad news in Trains and elsewhere marvelled at the stubbornness and opposition of this company and their complete disregard of good public relations.

   I'm not privy to the actual numbers, but I'll venture that of the total cost to rehabilitate this line for passenger service, very little came from the company that owned it and afterwards could profit from it itself.  At the least, it's a very uncreative company.

   I'll also note that having the Downeaster serve Maine has been a success that's benefitted many people and helped boost the state's economy.

 

Every word you said is true.

I should mention, though, that relations with the Downeaster eventually improved. I did a lot of work for the Downeaster, and at one point, when the extension to Freeport was christened, I found myself riding in the Pan Am executive car, on the end of the Amtrak train. David Fink Jr. was there, as was Patricia Quinn, the head of NNEPRA, who manages the Downeaster); those two seemed to get along very well, and I was told by her that they did. His father (then retired) was the grinch who stole Christmas.

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Posted by MarknLisa on Wednesday, December 2, 2020 12:28 PM

I'm thinking CSX will "demarket" most of the small and mid-sized customers and "rationalize" most lines leaving only a couple higher-volume lanes.  Like CN did with the Wisconsin Central aquisition. 

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Posted by MMLDelete on Wednesday, December 2, 2020 1:15 PM

To me the big questions are whether they'll retain much of the B&M east-west main; and how much of what all they acquire will be bought by shortlines, and how much will be abandoned.

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Posted by CSSHEGEWISCH on Wednesday, December 2, 2020 1:55 PM

Since CSX already has the Boston & Albany, I wouldn't be too surprised if the STB orders that the other 50% interest in the B&M east-west main be sold to NS.

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 MidlandMike on Wednesday, December 2, 2020 9:19 PM

There is a Trains Blog topic on this, and in it a clearance map was referenced.  It shows that most of the line thru NH and Maine is plate F, 17' clearance.  

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Posted by MMLDelete on Wednesday, December 2, 2020 11:41 PM
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Posted by samfp1943 on Thursday, December 3, 2020 10:38 AM

[quote user="Lithonia Operator"]

https://www.railwayage.com/regulatory/definitive-csx-acquiring-pan-am-railways/

 [/quote]
Note: From the linked site, provided by Lithonia Operator: FTL: "....Railway Age reported that NS has a $140 million joint venture with Pan Am called PAS, which gives the former access to New England via trackage rights on the former Boston & Maine Mechanicville, N.Y.-Ayer, Mass., main line. In its STB filing, NS noted that “one of the main benefits of … joint control and ownership of PAS was to strengthen competition with CSX Transportation. Any CSXT effort to acquire Pan Am would threaten to materially undermine this existing competition, thus impacting not only NS, but also rail shippers and other railroads. NS is concerned with CSXT’s potential acquisition of Pan Am, specifically its interest in PAS, and is further concerned with CSXT’s potential use of a voting trust to acquire Pan Am,” which NS said would create “competitive harm...”
 
From the outside looking in; My guess, would be that the lion's share of the aforementoned $140 M was from the NS; and PAS  was the beneficiary(?) for the partial 'buy-in" of NS on the PAS line?
CSXT picks up Pan Am, and The PAS for 'a song' (?) and leaves NS Corporately. with 'bupkus'... Pirate
 
The end play for CSXT is they are eventually able to access in the future(?) 
A possible 'win'  for CSXT is the proposal made earlier in this Thread: by kgbw49
 
Posted by kgbw49 on Wednesday, December 2, 2020 9:30 AM

One plausible scenario is that Pan Am Southern will go to Norfolk Southern.

One potential factor is Port St John in New Brunswick. Pan Am interchanges with the Easten Maine Railway-New Brunswick Southern Railway system at Mattawamkeag.   Port St John is undergoing a $200+ million expansion that will allow it to berth 360 meter container ships in the 8,500-10,000 TEU size. The port throughput will go from about 75,000 TEU annually to about 330,000 TEU annually. That is about 900 containers per day in and out on average, which would be 4.5 trains per day of 100 wells each if they all go be rail.

With the shift of manufacturing out of China to South Asia, more trade will be coming via the Suez Canal and Mediterranean Sea. Port St John is the second closest port to the Strait of Gibraltar after Halifax.

It would take some clearance improvements and upgrading some line to 286,000-lbs from Bangor to Mattawamkeag, but there is the future potential for container service from Port St John to the Northeast and Midwest.      It would be CSXT's longest container route.

CP also accesses Port St John via the Eastern Maine Railway-New Brunswick Southern at Brownville Junction.

The port expansion is one reason - not the only reason, but one reason - that they purchased Central Maine & Quebec.

Time will tell but it will be interesting to watch.  

NOW, Where is that popcorn machine when you need it? SighWhistling

P.S. To add a thought on this deal:   Re: Hoosac Tunnel (?)

Note(#1) "...In 2009, ownership of the tunnel was transferred to Pan Am Southern, a 50-50 joint venture of Pan Am Railways and Norfolk Southern Railway. Freight trains through the tunnel are operated by Springfield Terminal Railway, the train operating subsidiary of Pan Am Railways.   

Crying NS might be 'a reluctant bride' at the shotgun wedding of CSXT and PAS (?)

Some more on the Hoosac Tunnel @ https://en.wikipedia.org/wiki/Hoosac Tunnel

 

 


 

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Posted by MidlandMike on Thursday, December 3, 2020 7:32 PM

First, in the agreement that NS signed with Pan Am to create PAS, didn't they have any language to protect themselves in the event of these commonplace mergers?

Second, didn't NS have the chance to bid on Pan Am, or otherwise influence the outcome?  Why are they complaining now when they passed up the opportunity?

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Posted by MMLDelete on Thursday, December 3, 2020 11:25 PM

Because that's what you do.

EDIT: By that I meant "one does." Not Midland Mike does!

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Posted by kgbw49 on Friday, December 4, 2020 8:30 AM

In looking via Google Msps at potential doublestack routes west from Port Saint John through Massachusetts, it appears that the one logical route may be Pan Am to East Deerfield then down to Springfield to jump on the Boston & Albany. 

At the risk of sounding overly simplistic, it looks like clearances could be increased for doublestacks by lowering the track beneath highway overpasses. Here is a PAR clearance map.

https://static1.squarespace.com/static/5a3d34cbf09ca44c384dd0f4/t/5a43e42cf9619a2bb2ceafac/1514398765171/Clearances.jpg

There might be some upgrading to 286K needed on some stretches of track. While living in southern WI for a period of time, I was able to "watch from close up" as WIsconsin & Southern did that. It consisted mainly of strengthening bridges and then, where there was very old light rail, replacing it with 115 lb welded rail.

Here is a PAR weight map.

https://static1.squarespace.com/static/5a3d34cbf09ca44c384dd0f4/t/5f9afcf02ed77a33adff5434/1603992817866/weight.jpg

All in all, it seems plausible that CSX may be able to run doublestacks from Port Saint John to the midwest in the future. It is about 1,000 miles to Cleveland and 1,300 miles to Chicago, making it CSX's longest intermodal lane. If it happens.

Port Saint John is expanding with a $200+ million expansion to berth two container ships simultaneously of up to 360 meters each, which depending on the beam of the ship puts them in the 8,500-10,000 TEU range.

https://www.craneandhoistcanada.com/port-of-saint-john-expansion-underway-1348/

https://www.joc.com/port-news/international-ports/port-saint-john/dp-world-aims-make-canada-saint-john-gateway-us-imports_20160922.html

It will be interesting to watch, for sure.

 

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Posted by CMStPnP on Friday, December 4, 2020 9:14 AM

kgbw49
. While living in southern WI for a period of time, I was able to "watch from close up" as WIsconsin & Southern did that. It consisted mainly of strengthening bridges and then, where there was very old light rail, replacing it with 115 lb welded rail.

So the success of Wisconsin and Southern was tied directly to Randy Gardner whom before he was convicted was a successful highway contractor and lobbyist prior to his involvement with WSOR.   He knew how to grease the skids as they say to get state funding for highway projects.    He used the same techniques with Wisconsin and Southern and eventually got caught because he made the mistake of telling his girlfriend who ran off to the authorities and snitched after some argument they had.    Broke the first rule of Highway Contractors, never tell someone outside the family about the family business.

He knew how to schmooze state officials by putting them on special passenger trains with himself narrating the route, wining and dining them, etc.   I was impressed watching from afar because that is very similar to what large IT consulting companies due when they persue an IT contract from a company.   Take the client on the tour of their software labs, courtesy a flight in the business jet, some nice hotel time and dinners with booze.     So if you ever wonder why highways always get the money and rails are starved.    Pretty sure it is the highway lobby.

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Posted by kgbw49 on Friday, December 4, 2020 10:11 AM

I have to admit I don't know the back story in depth on Wisconsin & Southern that you refer to. What they physically they did to get to 286K on the roadbed is what I was referencing.

WAMX is the operator of all those State-owned lines now so hopefully the communities that still have their rail service are glad to have it.

I do think CSX has the financial horsepower to do their own upgrading for clearances and 286K on PAR if they decide that is the way to go.

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Posted by beaulieu on Friday, December 4, 2020 9:24 PM

I don't know if CSXT has any interest in the Port of Saint John, NB but CP definately does. CP has a contract to haul Hapag-Lloyd containers from the Port of Montreal to the US Midwest and Western Canada, this business originates in Europe. Hapag-Lloyd is having problems due to strikes at Montreal. CP and Hapag-Lloyd have announced a new service for the same markets operating via the Port of Saint John, NB

CP and Hapag-Lloyd agreement

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Posted by kgbw49 on Saturday, December 5, 2020 11:07 AM

A couple of interesting links about the Port of Saint John expansion project.

This link notes that after the project is completed the port will be able to handle New Panamax ships.

https://www.dillon.ca/projects/project-details/west-side-terminals-modernization---saint-john-nb

This link indicates that New Panamax ships can be up to 366 meters in length with a beam of up to 49 meters, and can handle up to 12,500 TEUs.

https://transportgeography.org/?page_id=2232

This link has a detailed diagram of the finished port expansion project.

https://www.sjport.com/modernize/project-overview/

 

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Posted by BaltACD on Saturday, December 5, 2020 11:34 AM

kgbw49
A couple of interesting links about the Port of Saint John expansion project.

This link notes that after the project is completed the port will be able to handle New Panamax ships.

https://www.dillon.ca/projects/project-details/west-side-terminals-modernization---saint-john-nb

This link indicates that New Panamax ships can be up to 366 meters in length with a beam of up to 49 meters, and can handle up to 12,500 TEUs.

https://transportgeography.org/?page_id=2232

This link has a detailed diagram of the finished port expansion project.

https://www.sjport.com/modernize/project-overview/

Low tide channel depth is rather lacking at 9.5 meters - today's vessels in addition to being long and wide are also deep draft.

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Posted by kgbw49 on Saturday, December 5, 2020 1:07 PM

Yes indeed. There is a chart out there of the widening and deepening of the ship channel and the harbor itself to handle the larger ships.

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Posted by BaltACD on Saturday, December 5, 2020 1:40 PM

kgbw49
Yes indeed. There is a chart out there of the widening and deepening of the ship channel and the harbor itself to handle the larger ships.

The maritime industry view ports based on their low tide draft, not high tide.

Port of Baltimore loaded coal carrying vessels to their Baltimore maximum draft of 39 feet.  The vessels would sail down the Chesapeake Bay to be 'topped off' at Newport News with their draft of 56 feet.  Vessels would get 60K tons in Baltimore and another 100K tons at Newport News to take across the pond to destination.

If you send a vessel into a port with a draft of somewhere between the low tide and high tide figures - at low tide the vessel will be sitting on the bottom - which does no good to the hull structure.

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Posted by kgbw49 on Saturday, December 5, 2020 2:32 PM

Yes, I understand. Articles quoting the port manager indicate they expect to berth ships primarily in the 8,500 TEU range. A robust dredging regimen will likely be necessary as the berths are literally in the river as well as subject to the tides.

The container ship table linked above shows that 8,500 TEU vessels have drafts of between 14 and 15 meters.

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Posted by blue streak 1 on Monday, December 7, 2020 12:21 AM

Removed and moved to Passenger thread

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Posted by kgbw49 on Wednesday, December 9, 2020 8:00 PM

Per the Port of Saint John web site, the berths for container ships will be 17.1 meters deep at low tide. This will still accomodate New Panamax ships with 15.2 meters of draft.

Clearly the berths will be dredged down to form a "tub" for continued flotation at low tide.

They will have to arrive and depart at high tide.

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Posted by MidlandMike on Wednesday, December 9, 2020 8:52 PM

kgbw49

Per the Port of Saint John web site, the berths for container ships will be 17.1 meters deep at low tide. This will still accomodate New Panamax ships with 15.2 meters of draft.

Clearly the berths will be dredged down to form a "tub" for continued flotatiom at low tide.

They will have to arrive and depart at high tide.

 

Not a great incentive to shipping, to have to wait up to 12 hours to enter and exit the port.  The port has about a 26 foot tidal range.

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Posted by SD70Dude on Thursday, December 10, 2020 10:04 AM

MidlandMike
kgbw49

Per the Port of Saint John web site, the berths for container ships will be 17.1 meters deep at low tide. This will still accomodate New Panamax ships with 15.2 meters of draft.

Clearly the berths will be dredged down to form a "tub" for continued flotatiom at low tide.

They will have to arrive and depart at high tide.

Not a great incentive to shipping, to have to wait up to 12 hours to enter and exit the port.  The port has about a 26 foot tidal range.

The Bay of Fundy is well known for its enormous tides.

Saint John is the site of the famous 'Reversing Falls', where the rising tide overcomes the downstream flow of the Saint John River:

https://en.m.wikipedia.org/wiki/Reversing_Falls

Greetings from Alberta

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Posted by Overmod on Thursday, December 10, 2020 11:03 AM

MidlandMike
Not a great incentive to shipping, to have to wait up to 12 hours to enter and exit the port.

But let's be honest: if you're a ship's master so incompetent as to miss arriving during the required window in transit across the Atlantic -- I see very little point in routing much traffic coming north up the coast as far as St. John or Halifax after transiting the Pacific and the Canal or Tehuantepec -- I don't feel particularly sorry for your wait.

I also doubt that 12-odd hours max delay constitutes a major critical delay in overall delivery time for most , if anyone sensible planned the schedule.

At least nobody said "It was such a bore to make them wait that long" Mischief

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