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In 1977, [[Timothy Mellon]] (heir of the wealthy and influental [[Mellon family]]) of [[Guilford, Connecticut]], teamed up with David Fink to form Perma Treat, a railroad tie treatment company. Mellon wanted to acquire a railroad and considered several: [[Illinois Central Railroad]], [[Detroit, Toledo and Ironton Railroad]] and [[Detroit, Toledo and Ironton Railroad]]. None of those ventures panned out, but Mellon's interest in railroads continued.<ref name=drury/> The passage of the [[Staggers Rail Act]] in 1980 allowed Mellon and Fink to execute a business plan unlike those of earlier railroads in thw region, centering on the idea of buying up as many local railroads as possible, to create full [[horizontal integration]] over New England and the northern Mid-Atlantic states, gaining efficiencies of scale.
In 1977, [[Timothy Mellon]] (heir of the wealthy and influental [[Mellon family]]) of [[Guilford, Connecticut]], teamed up with David Fink to form Perma Treat, a railroad tie treatment company. Mellon wanted to acquire a railroad and considered several: [[Illinois Central Railroad]], [[Detroit, Toledo and Ironton Railroad]] and [[Detroit, Toledo and Ironton Railroad]]. None of those ventures panned out, but Mellon's interest in railroads continued.<ref name=drury/> The passage of the [[Staggers Rail Act]] in 1980 allowed Mellon and Fink to execute a business plan unlike those of earlier railroads in thw region, centering on the idea of buying up as many local railroads as possible, to create full [[horizontal integration]] over New England and the northern Mid-Atlantic states, gaining efficiencies of scale.


===Guilford===
[[Image:Guilford transportation industries logo.png|thumb|200px|left|Guilford logo]]
[[Image:Guilford transportation industries logo.png|thumb|200px|left|Guilford logo]]
In June 1981, he purchased MEC and its wholly owned subsidiary [[Portland Terminal Company]] (then owned by U.S. Filter Corporation) through his holding company, Guilford Transportation Industries.<ref name=drury/><ref name="guilfordrail.com">[http://www.guilfordrail.com/xpress/2006Q1.pdf Pan Am company newsletter, January 2006]</ref> In June 1983, the B&M became the second piece of the Guilford system, bringing with it a subsidiary, the {{convert|6.5|mi|adj=on}} Springfield Terminal Railway (ST), a former [[interurban]] line connecting [[Springfield, Vermont]] to [[Charlestown, New Hampshire]].<ref name=drury/><ref>[http://www.vuhs.org/erails/strc/strmap.html Springfield Terminal Railroad map]</ref>
In June 1981, he purchased MEC and its wholly owned subsidiary [[Portland Terminal Company]] (then owned by U.S. Filter Corporation) through his holding company, Guilford Transportation Industries.<ref name=drury/><ref name="guilfordrail.com">[http://www.guilfordrail.com/xpress/2006Q1.pdf Pan Am company newsletter, January 2006]</ref> In June 1983, the B&M became the second piece of the Guilford system, bringing with it a subsidiary, the {{convert|6.5|mi|adj=on}} Springfield Terminal Railway, a former [[interurban]] line connecting [[Springfield, Vermont]] to [[Charlestown, New Hampshire]].<ref name=drury/><ref>[http://www.vuhs.org/erails/strc/strmap.html Springfield Terminal Railroad map]</ref>


The formation of [[Penn Central Transportation Company|Penn Central]] (PC) in 1968 and its takeover of the [[New York, New Haven and Hartford Railroad]] at year's end had left New England with only one non-PC connection to the rest of the country: B&M's interchange with D&H at [[Mechanicville, New York]]. The D&H made a logical extension to the the Guilford system — and a necessary one if Guilford was to be something more than a [[Switching and terminal railroad|terminal company]] for [[Conrail]] traffic moving into New England. D&H was surrounded by Conrail and not doing well. The state of New York, which had financed much of D&H's rehabilitation program, approached Guilford about acquuring the railroad. In October 1981, the [[Norfolk and Western Railway]], which owned D&H through a subsidiary holding company, agreed to sell it to Guilford. he purchase was completed at the beginning of 1984.<ref name=drury/>
The formation of [[Penn Central Transportation Company|Penn Central]] (PC) in 1968 and its takeover of the [[New York, New Haven and Hartford Railroad]] at year's end had left New England with only one non-PC connection to the rest of the country: B&M's interchange with D&H at [[Mechanicville, New York]]. The D&H made a logical extension to the the Guilford system — and a necessary one if Guilford was to be something more than a [[Switching and terminal railroad|terminal company]] for [[Conrail]] traffic moving into New England. D&H was surrounded by Conrail and not doing well. The state of New York, which had financed much of D&H's rehabilitation program, approached Guilford about acquuring the railroad. In October 1981, the [[Norfolk and Western Railway]], which owned D&H through a subsidiary holding company, agreed to sell it to Guilford. he purchase was completed at the beginning of 1984.<ref name=drury/>
Line 42: Line 43:
By the time the Guilford system was formed, the one-time multiplicity of connecting railroads had beomce a single, healthy, well-managed railroad: Conrail. Any New England-bound traffic Conrail originated would move as far as possible on Conrail beofre being handed over to Guilford (e.g. to [[Springfield, Massachusetts]] rather than [[Buffalo, New York]]), and it would move faster. the Guilford remained a short-haul, terminating railroad.<ref name=drury/>
By the time the Guilford system was formed, the one-time multiplicity of connecting railroads had beomce a single, healthy, well-managed railroad: Conrail. Any New England-bound traffic Conrail originated would move as far as possible on Conrail beofre being handed over to Guilford (e.g. to [[Springfield, Massachusetts]] rather than [[Buffalo, New York]]), and it would move faster. the Guilford remained a short-haul, terminating railroad.<ref name=drury/>


===Abandonments===
Guilford struggled financially to turn a profit, and soon learned that another way to earn a quick buck — at least for a while — is to cut costs. Guilford then began to shrink its system by eliminating marginal low-density routes. MEC's [[Mountain Division]] from [[Portland, Maine]] to [[St. Johnsbury, Vermont]] carried almost no local traffic and served only to give MEC a connection with a railroad other than B&M. With the formation of the Guilford system it was deemed redundant; B&M was now part of the family, and interchanging traffic with the [[Canadian Pacific Railway]] (CP Rail) at [[Mattawamkeag, Maine]], was easier than battling the grades of [[Crawford Notch]] in [[New Hampshire]]. Similarly, the only business on MEC's [[Calais Branch]] from [[Bangor, Maine|Bangor]] to [[Calais, Maine]], was at the extreme eastern end, which could be reached by CP Rail. Service on most of the branch was discontinued, and the line was sold to the state of [[Maine]].<ref name=drury/> The remaining service was in Calais, serving a [[pulp mill]] in [[Woodland, Washington County, Maine|Woodland]]. The current Calais service is operated by ST, which has more advantageous labor agreements. The state leases the western portion of the branch to the [[Downeast Scenic Railroad]], who operate a {{convert|4|mi|adj=on}} segment between [[Brewer, Maine|Brewer]] and Washington Junction in [[Ellsworth, Maine]].
Guilford's first few years were defined by abandonments, labor unrest and stikes, and a [[Draco (lawgiver)|draconian]] management style that damaged the company's reputation for some time. The railroad struggled financially to turn a profit, and soon learned that another way to earn a quick buck — at least for a while — is to cut costs. Guilford then began to shrink its system by eliminating marginal low-density routes. MEC's [[Mountain Division]] from [[Portland, Maine]] to [[St. Johnsbury, Vermont]] carried almost no local traffic and served only to give MEC a connection with a railroad other than B&M. With the formation of the Guilford system it was deemed redundant; B&M was now part of the family, and interchanging traffic with the [[Canadian Pacific Railway]] (CP Rail) at [[Mattawamkeag, Maine]], was easier than battling the grades of [[Crawford Notch]] in [[New Hampshire]]. Similarly, the only business on MEC's [[Calais Branch]] from [[Bangor, Maine|Bangor]] to [[Calais, Maine]], was at the extreme eastern end, which could be reached by CP Rail. Service on most of the branch was discontinued, and the line was sold to the state of [[Maine]].<ref name=drury/> The remaining service was in Calais, serving a [[pulp mill]] in [[Woodland, Washington County, Maine|Woodland]]. The current Calais service is operated by ST, which has more advantageous labor agreements. The state leases the western portion of the branch to the [[Downeast Scenic Railroad]], who operate a {{convert|4|mi|adj=on}} segment between [[Brewer, Maine|Brewer]] and Washington Junction in [[Ellsworth, Maine]].


[[File:ST621.jpeg|thumb|right|Springfield Terminal locomotive #621 at [[Westford, Massachusetts]], 2007]]
[[File:ST621.jpeg|thumb|right|Springfield Terminal locomotive #621 at [[Westford, Massachusetts]], 2007]]
Line 48: Line 50:


==Amtrak conflict==
==Amtrak conflict==
Guiford proved to be an unwilling participant in assisting [[Amtrak]] on several occassions, forcing the U.S. federal government to get involved. The company had two north-south routes to [[Canada]], the D&H line north from [[Albany, New York|Albany]] and B&M's Connecticut River Line. The D&H line was in better shape, so Guiford downgraded the B&M route, reducing maintenance. Complications arose, however. B&M and the [[Central Vermont Railway]] (CV) each owned a portion of the route. South of [[Brattleboro, Vermont|Brattleboro]] and north of [[Windsor, Vermont]], CV maintained its track so that good speeds were possible, but between those two points was a {{convert|50|mi|adj=on}} stretch pf B&M track, much of it limited to {{convert|10|mph|abbr=on}}. Amtrak, whose ''[[Montrealer (Amtrak)#Montrealer|Montrealer]]'' used the route, found the slow running intolerable. The train was suspended in 1987, and the ICC ordered B&M to sell the Windsor-Brattleboro segment to Amtrak, which immediately resold it to CV, who rehabilitated the track. The ''Montrealer'' was restored in 1989 on a new route: CV all the way to [[New London, Connecticut]] to [[Lacolle, Quebec|Cantic, Quebec]], bypassing B&M entirely.
Guiford proved to be an unwilling participant in assisting [[Amtrak]] on several occassions, forcing the U.S. federal government to get involved. The company had two north-south routes to [[Canada]], the D&H line north from [[Albany, New York|Albany]] and B&M's Connecticut River Line. The D&H line was in better shape, so Guiford downgraded the B&M route, reducing maintenance. Complications arose, however. B&M and the [[Central Vermont Railway]] (CV) each owned a portion of the route. South of [[Brattleboro, Vermont|Brattleboro]] and north of [[Windsor, Vermont]], CV maintained its track so that good speeds were possible, but between those two points was a {{convert|50|mi|adj=on}} stretch pf B&M track, much of it limited to {{convert|10|mph|abbr=on}}. Amtrak, whose ''[[Montrealer (Amtrak)#Montrealer|Montrealer]]'' used the route, found the slow running intolerable. The train was suspended in 1987, and the ICC ordered B&M to sell the Windsor-Brattleboro segment to Amtrak, which immediately resold it to CV, who rehabilitated the track. The ''Montrealer'' was restored in 1989 on a new route: CV all the way to [[New London, Connecticut]] to [[Lacolle, Quebec|Cantic, Quebec]], bypassing B&M entirely.<ref name=drury/>

⚫
====Labor disputes and mismanagement====
Guilford announced layoffs, shop closings, and pay cuts. MEC's maintenance workers went on strike in March 1986, and the strike spread to B&M and D&H. To take advantage of a lower wage scale and the more flexible work rules that apply to [[Shortline railroad|shortline railroads]], Guilford began leasing portions of the MEC and B&M to B&M subsidiary Springfield Terminal (ST) for operation. This saved money for Guilford, but angered labor, resulting in another, more lengthy strike in 1987. In 1988 an arbitrator on behalf of the ICC ruled that Guilford could not lease D&H to ST and had to abide by pre-ST labor agreements. The ruling precipitated D&H into bankruptcy. Guilford withdrew from D&H and the [[New York, Susquehanna and Western Railway]] managed it. The employees then sold out in 1991 to the CP Rail.


==== Expansion attempt ====
==== Expansion attempt ====
In 1985, Guilford entered into an agreement with [[Norfolk Southern Railway]] (NS) to run trains to [[St. Louis, Missouri|St. Louis]]. NS was attempting to win approval of a plan to purchase Conrail from the United States government and proposed allowing Guilford to lease Conrail lines to St. Louis in order to restore competition that would be lost in the merger. The plan would have allowed Guilford to use the Conrail mainline from [[Toledo, Ohio|Toledo]] to [[Ridgeway, Ohio]] and from [[Crestline, Ohio]] to St. Louis. Guilford would also purchase other Conrail track for $35 million.<ref>Behr, Peter. "Norfolk Southern Moves To Erase Antitrust Issue." ''Washington Post,'' September 26, 1985.</ref> NS did not prevail in its attempt to purchase Conrail in 1985, and the Guilford plan was dropped.
In 1985, Guilford entered into an agreement with [[Norfolk Southern Railway]] (NS) to run trains to [[St. Louis, Missouri|St. Louis]]. NS was attempting to win approval of a plan to purchase Conrail from the United States government and proposed allowing Guilford to lease Conrail lines to St. Louis in order to restore competition that would be lost in the merger. The plan would have allowed Guilford to use the Conrail mainline from [[Toledo, Ohio|Toledo]] to [[Ridgeway, Ohio]] and from [[Crestline, Ohio]] to St. Louis. Guilford would also purchase other Conrail track for $35 million.<ref>Behr, Peter. "Norfolk Southern Moves To Erase Antitrust Issue." ''Washington Post,'' September 26, 1985.</ref> NS did not prevail in its attempt to purchase Conrail in 1985, and the Guilford plan was dropped.

⚫
==== Labor disputes and contraction ====
More branch lines were subsequently leased to Springfield Terminal, and eventually all of the B*M and MEC were operated by ST. This saved Guilford money, but angered labor. In 1986, Guilford endured a lengthy and extremely bitter strike by its workforce, which required the intervention of President [[Ronald Reagan]]'s administration. In 1988, Guilford declared the Delaware and Hudson Railway bankrupt. D&H employees took it over, with the [[New York, Susquehanna and Western Railway]] managing it. The employees then sold out in 1991 to the CP Rail.

In the years that followed, Guilford forced many management and salary changes, resulting in other strikes over wages and work rules.{{Citation needed|date=May 2008}}


[[Image:EMD GP40 B&M 339 Wells Maine.jpg|thumb|right|Boston & Maine locomotive #339 at [[Wells, Maine]], 1999]]
[[Image:EMD GP40 B&M 339 Wells Maine.jpg|thumb|right|Boston & Maine locomotive #339 at [[Wells, Maine]], 1999]]

Revision as of 21:51, 9 November 2012

Pan Am Railways, Inc.
Company typePrivate
IndustryRail transport
Founded1981 (as rail division of Guilford Transportation Industries)
2006 (name changed from Guilford Rail System to Pan Am Railways)
FounderTimothy Mellon
Headquarters
North Billerica, Massachusetts
,
United States of America
Area served
Northeast
Key people
Timothy Mellon
David Fink
David A. Fink
Number of employees
750 (2011)
ParentPan Am Systems
SubsidiariesBoston and Maine Corporation
Maine Central Railroad Company
Portland Terminal Company
Springfield Terminal Railway Company
Websitepanamrailways.com

Pan Am Railways, Inc. (PAR), known as Guilford Rail System (GRS) before March 2006, is a holding company that owns and operates Class II regional railroads covering northern New England from Mattawamkeag, Maine to Rotterdam Junction, New York. The primary subsidiaries of Pan Am Railways are Boston and Maine Corporation (reporting mark BM), Maine Central Railroad Company (reporting mark MEC), Portland Terminal Company (reporting mark PTM), and Springfield Terminal Railway Company (reporting mark ST); BM and MEC are operated under lease by ST.

Pan Am Railways is headquartered in North Billerica, Massachusetts.[1][2] It is a subsidiary of Portsmouth, New Hampshire-based Pan Am Systems, formerly known as Guilford Transportation Industries (GTI). Guilford bought the name, colors and logo of Pan American World Airways in 1998.

History

Early years

Pan Am Railways headquarters

During much of the twentieth century the trend has been for heavy manufacturing industry to move out of New England, making the region primarily a receiver of freight traffic rather than an originator. The ways to make money in the railroad business are to orginiate freight or carry it a long distance. New England's railroads have long been handicapped by a traffic flow that makes them delivery agents for other railroads and by short distances. Practically the longest one-railroad haul in New England was Boston and Maine's (B&M) route from the Hudson River to Portland, Maine, 267 miles — less than one-eighth of the distance from Seattle to Chicago on the BNSF Railway[3]

A merger consisting of the B&M, Maine Central Railroad Company (MEC), and the Delaware and Hudson Railway (D&H) along with one or more other New England railroads was proposed as long ago as 1929 by the Interstate Commerce Commission as part of its nationwide merger proposal. Frederic C. Dumaine, Jr., president at various times of the New York, New Haven & Hartford Railroad, the Bangor and Aroostook Railroad, and D&H, proffered much the same idea. The benefits of such a merger would include economies of scale and longer hauls.[3]

In 1977, Timothy Mellon (heir of the wealthy and influental Mellon family) of Guilford, Connecticut, teamed up with David Fink to form Perma Treat, a railroad tie treatment company. Mellon wanted to acquire a railroad and considered several: Illinois Central Railroad, Detroit, Toledo and Ironton Railroad and Detroit, Toledo and Ironton Railroad. None of those ventures panned out, but Mellon's interest in railroads continued.[3] The passage of the Staggers Rail Act in 1980 allowed Mellon and Fink to execute a business plan unlike those of earlier railroads in thw region, centering on the idea of buying up as many local railroads as possible, to create full horizontal integration over New England and the northern Mid-Atlantic states, gaining efficiencies of scale.

Guilford

Guilford logo

In June 1981, he purchased MEC and its wholly owned subsidiary Portland Terminal Company (then owned by U.S. Filter Corporation) through his holding company, Guilford Transportation Industries.[3][4] In June 1983, the B&M became the second piece of the Guilford system, bringing with it a subsidiary, the 6.5-mile (10.5 km) Springfield Terminal Railway, a former interurban line connecting Springfield, Vermont to Charlestown, New Hampshire.[3][5]

The formation of Penn Central (PC) in 1968 and its takeover of the New York, New Haven and Hartford Railroad at year's end had left New England with only one non-PC connection to the rest of the country: B&M's interchange with D&H at Mechanicville, New York. The D&H made a logical extension to the the Guilford system — and a necessary one if Guilford was to be something more than a terminal company for Conrail traffic moving into New England. D&H was surrounded by Conrail and not doing well. The state of New York, which had financed much of D&H's rehabilitation program, approached Guilford about acquuring the railroad. In October 1981, the Norfolk and Western Railway, which owned D&H through a subsidiary holding company, agreed to sell it to Guilford. he purchase was completed at the beginning of 1984.[3]

By the time the Guilford system was formed, the one-time multiplicity of connecting railroads had beomce a single, healthy, well-managed railroad: Conrail. Any New England-bound traffic Conrail originated would move as far as possible on Conrail beofre being handed over to Guilford (e.g. to Springfield, Massachusetts rather than Buffalo, New York), and it would move faster. the Guilford remained a short-haul, terminating railroad.[3]

Abandonments

Guilford's first few years were defined by abandonments, labor unrest and stikes, and a draconian management style that damaged the company's reputation for some time. The railroad struggled financially to turn a profit, and soon learned that another way to earn a quick buck — at least for a while — is to cut costs. Guilford then began to shrink its system by eliminating marginal low-density routes. MEC's Mountain Division from Portland, Maine to St. Johnsbury, Vermont carried almost no local traffic and served only to give MEC a connection with a railroad other than B&M. With the formation of the Guilford system it was deemed redundant; B&M was now part of the family, and interchanging traffic with the Canadian Pacific Railway (CP Rail) at Mattawamkeag, Maine, was easier than battling the grades of Crawford Notch in New Hampshire. Similarly, the only business on MEC's Calais Branch from Bangor to Calais, Maine, was at the extreme eastern end, which could be reached by CP Rail. Service on most of the branch was discontinued, and the line was sold to the state of Maine.[3] The remaining service was in Calais, serving a pulp mill in Woodland. The current Calais service is operated by ST, which has more advantageous labor agreements. The state leases the western portion of the branch to the Downeast Scenic Railroad, who operate a 4-mile (6.4 km) segment between Brewer and Washington Junction in Ellsworth, Maine.

Springfield Terminal locomotive #621 at Westford, Massachusetts, 2007

MEC's Rockland Branch from Brunswick to Rockland, Maine was also on the chopping block, and it now part of the Maine Coast Railroad, as was part of the Lower Road, the Portland-Waterville route via Augusta, Maine.[3]

Amtrak conflict

Guiford proved to be an unwilling participant in assisting Amtrak on several occassions, forcing the U.S. federal government to get involved. The company had two north-south routes to Canada, the D&H line north from Albany and B&M's Connecticut River Line. The D&H line was in better shape, so Guiford downgraded the B&M route, reducing maintenance. Complications arose, however. B&M and the Central Vermont Railway (CV) each owned a portion of the route. South of Brattleboro and north of Windsor, Vermont, CV maintained its track so that good speeds were possible, but between those two points was a 50-mile (80 km) stretch pf B&M track, much of it limited to 10 mph (16 km/h). Amtrak, whose Montrealer used the route, found the slow running intolerable. The train was suspended in 1987, and the ICC ordered B&M to sell the Windsor-Brattleboro segment to Amtrak, which immediately resold it to CV, who rehabilitated the track. The Montrealer was restored in 1989 on a new route: CV all the way to New London, Connecticut to Cantic, Quebec, bypassing B&M entirely.[3]

Labor disputes and mismanagement

Guilford announced layoffs, shop closings, and pay cuts. MEC's maintenance workers went on strike in March 1986, and the strike spread to B&M and D&H. To take advantage of a lower wage scale and the more flexible work rules that apply to shortline railroads, Guilford began leasing portions of the MEC and B&M to B&M subsidiary Springfield Terminal (ST) for operation. This saved money for Guilford, but angered labor, resulting in another, more lengthy strike in 1987. In 1988 an arbitrator on behalf of the ICC ruled that Guilford could not lease D&H to ST and had to abide by pre-ST labor agreements. The ruling precipitated D&H into bankruptcy. Guilford withdrew from D&H and the New York, Susquehanna and Western Railway managed it. The employees then sold out in 1991 to the CP Rail.

Expansion attempt

In 1985, Guilford entered into an agreement with Norfolk Southern Railway (NS) to run trains to St. Louis. NS was attempting to win approval of a plan to purchase Conrail from the United States government and proposed allowing Guilford to lease Conrail lines to St. Louis in order to restore competition that would be lost in the merger. The plan would have allowed Guilford to use the Conrail mainline from Toledo to Ridgeway, Ohio and from Crestline, Ohio to St. Louis. Guilford would also purchase other Conrail track for $35 million.[6] NS did not prevail in its attempt to purchase Conrail in 1985, and the Guilford plan was dropped.

Boston & Maine locomotive #339 at Wells, Maine, 1999

The paper industry provides the largest source of business, both inbound chemicals, clay and pulp (although Pan Am has lost a lot of that business to trucks), and outbound paper. Rail had[when?] a slightly more than 50% market share for outbound paper shipments from Maine, most of which used Pan Am (truck and boat carry the balance).[citation needed] By comparison, rail has a better than 80% market share from mills in Wisconsin (primarily served by Wisconsin Central Transportation).[citation needed] A 2008 report issued by the American Society of Civil Engineers rated Maine at 48th of the 50 states in volume of freight traffic that moves by rail.[7] The Maine Motor Transport Association web page reports that trucks transport 94% of total manufactured tonnage in Maine.[8]

In some years,[when?] Pan Am rail traffic had trended up somewhat, following national rail industry trends.[citation needed] However, as of recent times,[when?] Pan Am rail traffic has dropped considerably.[citation needed] A report issued by the Maine Department of Transportation listed rail traffic on the Maine Central Railroad as being 162,658 loads in 1972.[9] As of 2008, Pan Am rail traffic over the remaining portions of the MEC was estimated to be no more than 69,000 loads.[10] Interestingly, in this same time period, the Association of American Railroads estimates that rail traffic in the United States has more than doubled.[11]

Pan Am Railways

A Maine Central boxcar in Pan Am livery at Rigby Yard in South Portland, Maine, 2006

In 1998, Guilford bought the name, colors and logo of Pan American World Airways. In March 2006, Guilford Transportation Industries changed its name to Pan Am Systems, and Guilford Rail System was rebranded as Pan Am Railways. Then problems occurred. In March 2009, Pan Am was ordered to pay the largest corporate criminal fine in Massachusetts history — $500,000 — due to the company's violation of state and federal environmental laws and regulations.[12]

As of 2011, Pan Am employs 750 people and has a $40 million payroll.[13]

Norfolk Southern

On May 15, 2008, NS announced that it had come to an agreement with Pan Am Railways to "create an improved rail route between Albany, New York, and the Boston, Massachusetts area called the 'Patriot Corridor'." [14][15][16] The Surface Transportation Board approved the deal on March 12, 2009.[17] Each of the two companies own 50% of a new company known as Pan Am Southern (PAS). PAR's trackage between Ayer, Massachusetts and Mechanicville, New York was transferred to PAS and continues to be operated and maintained by PAR's Springfield Terminal Railway subsidiary. NS transferred to PAS cash and property valued at $140 million.

Improvements to the route include track and signal upgrades, and expansion of terminals, including construction of new automotive and intermodal terminals in Ayer and Mechanicville[18] In March 2012, the Federal Railroad Administration awarded a $2 million grant to the Massachusetts Department of Transportation for preliminary engineering on removing 19 obstacles to allow double stack container trains to use the Patriot Corridor route. The project includes raising clearance by two feet in the 4.75 mile Hoosac Tunnel.[19]

Routes

Maine Central locomotive #603 passing through Portland, Maine, 2010.

The main line runs from Mattawamkeag, Maine, to Mechanicville, New York, via the lines of the following former companies:

Locomotive fleet

Maine Central locomotives wearing the Pan Am Railways "Phase II" paint scheme at Rigby Yard, 2009.
Maine Central locomotives wearing the Pan Am Railways "Phase I" and Guilford Rail System "Phase III" paint schemes at Rigby Yard, 2009.
Numbers Reporting
marks		 Type Total
007 MEC EMD SW1 1
1, 2 PAR GMD FP9 2
45, 51, 52, 54,
62, 71, 72, 77		 ST EMD GP9 8
209, 210 ST EMD GP35 2
300-303, 305-310,
312-321		 MEC EMD GP40 20
326-328, 330,
332-335, 337,
340, 342		 BM EMD GP40 11
343-354, 370, 371,
373, 374, 376-382		 MEC EMD GP40 23
500-508 MEC GMD GP40-2L(W) 9
509-519 MEC GMD GP40-2(W) 11
600-619 MEC EMD SD40-2 20
690 BM EMD SD39 1
Fleet Total: 108

"Heritage" locomotives

In summer 2011, Pan Am Railways repainted an EMD GP9 locomotive (Springfield Terminal #77) into the maroon and gold "Minuteman" paint scheme used on Boston & Maine locomotives in the 1950s.[20] In December 2011, Springfield Terminal #52 (also a GP9) was repainted into Maine Central's 1950s-era "Pine Tree Route" green and gold paint scheme.[21]

References

Wikimedia Commons has media related to Pan Am Railways.
  1. ^ "Billerica town, Massachusetts." U.S. Census Bureau. Retrieved on August 27, 2009.
  2. ^ "Table of Contents Page." Pan Am Railways. Retrieved on August 27, 2009.
  3. ^ a b c d e f g h i j Drury, George H. (1992). The Train-Watcher's Guide to North American Railroads: A Contemporary Reference to the Major railroads of the U.S., Canada and Mexico. Waukesha, Wisconsin: Kalmbach Publishing. pp. 123–125. ISBN 0-89024-131-7. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  4. ^ Pan Am company newsletter, January 2006
  5. ^ Springfield Terminal Railroad map
  6. ^ Behr, Peter. "Norfolk Southern Moves To Erase Antitrust Issue." Washington Post, September 26, 1985.
  7. ^ http://www.maineasce.org/MaineASCEInfrastructureReportCard2008.htm
  8. ^ http://www.mmta.com/public/index.cfm?fuseaction=articles.view&id=4842
  9. ^ Mountain Division Rail Study; Maine Department of Transportation, December 2007
  10. ^ Atlantic Northeast Rails and Ports, 08#02A
  11. ^ http://www.aar.org/~/media/AAR/BackgroundPapers/775.ashx
  12. ^ Arata, Mary E. (12 October 2011). "Ayer may weigh injunctive relief against Pan Am". Nashoba Publishing. Retrieved 13 October 2011.
  13. ^ Billings, Randy (19 May 2011). "On the right track? Rail officials, South Portland residents hope to forge solution to idling trains". The Forecaster. Retrieved 21 May 2011.
  14. ^ "Pan Am Railways and Norfolk Southern Create the Patriot Corridor to Improve Rail Service and Expand Capacity in New York and New England" (Press release). Norfolk Southern Corp. 2008-05-15. Retrieved 2008-05-15.
  15. ^ "Introducing the Patriot Corridor" (PDF). Norfolk Southern Corp. 2008-05-16. Retrieved 2008-05-16. {{cite web}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
  16. ^ The Associated Press (2008-05-15). "2 railroad freight companies combine effort". AP Business News. Worcester Telegram & Gazette. Retrieved 2008-05-16. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  17. ^ US Board Approves Joint Ownership Of Pan Am Southern LLC, CNN Money, http://money.cnn.com/news/newsfeeds/articles/djf500/200903102012DOWJONESDJONLINE000756_FORTUNE5.htm, 3/12/09
  18. ^ "Pan Am's second takeoff". Trains Magazine. Kalmbach Publishing. January 2010.
  19. ^ Massachusetts Awarded $2 Million to Initiate Improvements Needed to Expand Freight Rail Service Into New England
  20. ^ Sprague, Bob (14 August 2011). "ST 77". Railroad Picture Archives. Retrieved 10 October 2011.
  21. ^ Smith, Kevin. "ST 52". Railroad Picture Archives. Retrieved 16 December 2011.
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