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STB: CSX acquisition of Pan Am is "Significant" transaction
Hat tip, JPB, at Trainorders
Eastern Railroad Discussion > STB: CSX acquisition of Pan Am is "Significant" transaction
Date: 03/25/21 02:28
STB: CSX acquisition of Pan Am is "Significant" transaction
Author: JPB
Excerpt from document published by the STB on the Federal Register late on 3/24/21:
"...Applicants’ submission asserts that there are anticipated benefits associated with the transaction. Based on the information the Board has about the possible competitive impacts today, the Board is unable to conclude at this stage that any anticompetitive impacts would clearly be outweighed by the potential contribution to the public interest in meeting significant transportation needs. However, the classification of this transaction as “significant” should not be read as any indication of how the Board might ultimately assess and weigh the benefits and any impacts on competition after development of a more complete record.
The Board finds the Proposed Transaction to be “significant” and is therefore unable to accept the February 25, 2021 submission as an application...."
https://public-inspection.federalregister.gov/2021-06211.pdf
Vermont Rail System raised the sole claim of anti-competitiveness as it perceived that the NS / CSX proposed appointment of G&W (owner of competitor New England Central RR) as Pan Am Southern operator might result in a loss of business through its current interchange points with PAS as PAS would be operated by a VRS competitor. And a bunch of Massachusetts and Vermont politicians weighed in with their concerns and recommendations to process the transaction as "significant" . So, despite an overwhelming # of shipper support statements for the acquisition of the beleaguered Pan Am property and operations by a much better run class 1 RR, STB decided to slow the process down.
It will be interesting to see how CSX, NS, and G&W, as well as supporting New England shippers, respond to this turn of events.
Date: 03/25/21 02:28
STB: CSX acquisition of Pan Am is "Significant" transaction
Author: JPB
Excerpt from document published by the STB on the Federal Register late on 3/24/21:
"...Applicants’ submission asserts that there are anticipated benefits associated with the transaction. Based on the information the Board has about the possible competitive impacts today, the Board is unable to conclude at this stage that any anticompetitive impacts would clearly be outweighed by the potential contribution to the public interest in meeting significant transportation needs. However, the classification of this transaction as “significant” should not be read as any indication of how the Board might ultimately assess and weigh the benefits and any impacts on competition after development of a more complete record.
The Board finds the Proposed Transaction to be “significant” and is therefore unable to accept the February 25, 2021 submission as an application...."
https://public-inspection.federalregister.gov/2021-06211.pdf
Vermont Rail System raised the sole claim of anti-competitiveness as it perceived that the NS / CSX proposed appointment of G&W (owner of competitor New England Central RR) as Pan Am Southern operator might result in a loss of business through its current interchange points with PAS as PAS would be operated by a VRS competitor. And a bunch of Massachusetts and Vermont politicians weighed in with their concerns and recommendations to process the transaction as "significant" . So, despite an overwhelming # of shipper support statements for the acquisition of the beleaguered Pan Am property and operations by a much better run class 1 RR, STB decided to slow the process down.
It will be interesting to see how CSX, NS, and G&W, as well as supporting New England shippers, respond to this turn of events.
