Pan Am Systems was a

privately held A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...

Portsmouth, New Hampshire Portsmouth is a city in Rockingham County, New Hampshire, United States. At the 2020 census it had a population of 21,956. A historic seaport and popular summer tourist destination on the Piscataqua River bordering the state of Maine, Portsm ...

-based

Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and ...

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...

composed of

rail transport Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a prep ...

, manufacturing and energy, transportation related brands, and

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...

divisions. It formerly held a now-defunct

airline An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...

division. Pan Am Systems was put up for sale in July 2020. On November 30, 2020,

CSX Corporation CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. The company was established in 1980 as part of the Chessie System and Seaboard Coast Line Industries merger ...

announced that it had signed a definitive agreement to purchase Pan Am Systems. The sale of Pan Am Systems to CSX underwent regulatory review by the

Surface Transportation Board The Surface Transportation Board (STB) of the United States is a federal, bipartisan, independent adjudicatory board. The STB was established on January 1, 1996, to assume some of the regulatory functions that had been administered by the Interstat ...

, which approved the sale on April 14, 2022. At midnight on June 1, 2022, CSX began operating Pan Am Systems and its

Pan Am Railways Pan Am Railways, Inc. (PAR) is a subsidiary of CSX Corporation that operates Class II regional railroads covering northern New England from Mattawamkeag, Maine, to Rotterdam Junction, New York. Pan Am Railways is primarily made up of former Cla ...

, Pan Am Systems was merged into a temporary subsidiary of CSX which will eventually merge into CSX.

History

1981–2020

Guilford Transportation Industries (GTI) was formed in 1981. GTI entered the railroad business in 1981 with its purchase of the

Maine Central Railroad Company The Maine Central Railroad Company was a United States, U. S. Class I railroad in central and southern Maine. It was chartered in 1856 and began operations in 1862. By 1884, Maine Central was the longest railroad in New England. Maine Central had ...

from U.S. Filter Corporation. This was followed by its 1983 purchase of the

Boston & Maine Railroad The Boston and Maine Railroad was a U.S. Class I railroad in northern New England. Originally chartered in 1835, it became part of what was the Pan Am Railways network in 1983 (most of which was purchased by CSX in 2022). At the end of 1970 ...

, and in 1984 it purchased the

Delaware and Hudson Railway The Delaware and Hudson Railway (D&H) is a railroad that operates in the Northeastern United States. In 1991, after more than 150 years as an independent railroad, the D&H was purchased by the Canadian Pacific Railway (CP). CP operates D&H ...

(D&H). In 1988, GTI declared D&H bankrupt. D&H employees took it over, with the New York, Susquehanna & Western Railway managing it. The employees then sold out in 1991 to the

Canadian Pacific Railway The Canadian Pacific Railway (french: Chemin de fer Canadien Pacifique) , also known simply as CPR or Canadian Pacific and formerly as CP Rail (1968–1996), is a Canadian Class I railway incorporated in 1881. The railway is owned by Canad ...

. GTI purchased the name, colors, and logo of

Pan American World Airways Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United State ...

in 1998 and Pan Am Systems was established that same year. In March 2006, GTI changed its name to Pan Am Railways. The company is privately owned by

Timothy Mellon Timothy Mellon (born July 22, 1942) is an American businessman, and the chairman and majority owner of Pan Am Systems, a Portsmouth, New Hampshire-based transportation holding company. He is a grandson of Andrew W. Mellon and an heir to the Mell ...

, an heir to the Mellon banking fortune, and several other stakeholders including former

Penn Central The Penn Central Transportation Company, commonly abbreviated to Penn Central, was an American class I railroad that operated from 1968 to 1976. Penn Central combined three traditional corporate rivals (the Pennsylvania, New York Central and th ...

employee David Fink and son David A. Fink.

CSX acquisition

In July 2020, Pan Am Systems was put up for sale. On November 30, 2020, an agreement was announced for

(parent company for

CSX Transportation CSX Transportation , known colloquially as simply CSX, is a Class I freight railroad operating in the Eastern United States and the Canadian provinces of Ontario and Quebec. The railroad operates approximately 21,000 route miles () of track. ...

) to acquire Pan Am Systems.

Norfolk Southern The Norfolk Southern Railway is a Class I freight railroad in the United States formed in 1982 with the merger of Norfolk and Western Railway and Southern Railway. With headquarters in Atlanta, the company operates 19,420 route miles (31, ...

has expressed concern about possible impacts on competition. The sale was proposed as follows: CSX will own and operate between Mattawamkeag, ME and Ayer, MA. Between Ayer and Rotterdam, NY, Genesee and Wyoming Rail will be the operating party. This means the track will be owned by CSX but CSX will not dispatch it. Also, Norfolk Southern will keep its 49% stake in Pan Am Southern (PAS). With the sale, the intermodal traffic between Mechanicville and Ayer will be re-routed over the B&A to Worcester, MA. From there the traffic will come up the Worcester main and into Ayer Yard. On March 25, 2021, after numerous letters questioning CSX's acquisition of Pan Am Railways parent Pan Am Systems from the Massachusetts Bay Transportation Authority, the Massachusetts Department of Transportation, the Commonwealth of Massachusetts, Vermont Rail System, as well as many other local political figures and community leaders from other New England states, the Surface Transportation Board ruled the acquisition as "Significant" meaning that a more rigorous review process would be necessary. On April 30, 2021, CSX submitted a 478-page plan of purchase outlining a broad range of topics, from implementations of track upgrades to the controversial issue of Norfolk Southern intermodal routing, as well as the fate of Pan Am's hodgepodge fleet of aging motive power, which is made up of EMD and GE locomotives from railroads such as Conrail, NS, CSX, the Milwaukee Road, and Kansas City Southern. On May 26, 2021, the federal regulators of the Surface Transportation Board rejected CSX's purchase application, deeming it "incomplete." The board cited "contradictions" and "lack of necessary information" to properly judge the acquisition, and therefore could not rule on the matter. While CSX has the option of re-submitting a revised application, which it has motioned toward in its official statement, the transaction stands on uncertain ground. On July 30, 2021, the Surface Transportation Board accepted a revised merger application for consideration, allowing CSX to move forward with the acquisition on Pan Am Systems. The decision determined that an environmental and historic review are unnecessary and establishes criteria for additional filings, public comments, and a deadline for a final Surface Transportation Board decision. The STB approved the sale of Pan Am Systems to CSX on April 14, 2022. At midnight on June 1, 2022, CSX began operating Pan Am Railways and Pan Am Systems was merged into a temporary subsidiary of CSX called 747 Merger Sub 2 which will become the new Pan Am Systems, the new Pan Am Systems and Pan Am Railways will eventually merge into CSX.

Divisions

Air

* Pan American Airways (1998–2004), a United States airline that operated scheduled services in the eastern USA under the purchased "Pan American Airways" brand, as well as charters for tour operators and services to the Dominican Republic and Puerto Rico. Operations ceased on November 1, 2004, and were transferred to the subsidiary

Boston-Maine Airways Boston-Maine Airways was an American airline headquartered in Portsmouth, New Hampshire, United States. It operated scheduled commuter services as well as Boeing 727 jet flights under the Pan Am Clipper Connection name. Its main base was Pease ...

, which resumed service as the ''Pan Am Clipper Connection'' brand. *

(Pan Am Clipper Connection), the formerly certified airline, which operated

charter A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified. It is implicit that the granter retains superiority (or sovereignty), and that the re ...

and scheduled passenger airline services between the northeastern United States and

and the

Caribbean The Caribbean (, ) ( es, El Caribe; french: la Caraïbe; ht, Karayib; nl, De Caraïben) is a region of the Americas that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean ...

under the ''Pan Am Clipper Connection'' brand. In February 2008 the U.S. Department of Transportation proposed the revocation of Boston-Maine's air carrier certification, as it ''"is not financially fit and does not possess the managerial competence to conduct any air transportation operations and has failed to comply with the regulations governing its operations."'' Services ended on February 29, 2008. *Pan Am Services, originally an aircraft service and support center, now a dealer of aircraft spare parts. **Facilities in

Dover, New Hampshire Dover is a city in Strafford County, New Hampshire, United States. The population was 32,741 at the 2020 census, making it the largest city in the New Hampshire Seacoast region and the fifth largest municipality in the state. It is the county se ...

and

Manufacturing and energy

*Perma Treat Corporation, manufacturer of

railroad tie A railroad tie, crosstie (American English), railway tie ( Canadian English) or railway sleeper ( Australian and British English) is a rectangular support for the rails in railroad tracks. Generally laid perpendicular to the rails, ties tran ...

s and other pressure-treated wood products.Pan Am company newsletter, January 2006
/ref> **Facilities in Mattawamkeag, Maine and

Durham, Connecticut Durham is a town in Middlesex County, Connecticut, United States. Durham is a former farming village on the Coginchaug River in central Connecticut. The population was 7,152 at the 2020 census. Every autumn, the town hosts the Durham Fair, the ...

. *Aroostook & Bangor Resources, Inc., recycles used railroad ties to generate electricity. **Facilities in Mattawamkeag, Maine.

Rail

(formerly Guilford Transportation Industries), a regional freight

railroad Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a prep ...

network that covers most of northern

New England New England is a region comprising six states in the Northeastern United States: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. It is bordered by the state of New York to the west and by the Canadian provinces ...

. Subsidiaries that make up the Pan Am Railways network: **

Boston and Maine Corporation The Boston and Maine Railroad was a U.S. Class I railroad in northern New England. Originally chartered in 1835, it became part of what was the Pan Am Railways network in 1983 (most of which was purchased by CSX in 2022). At the end of 1970, ...

Portland Terminal Company The Portland Terminal Company was a terminal railroad notable for its control of switching (shunting) activity for the Maine Central Railroad (MEC) and Boston & Maine (B&M) railroads in the Maine cities of Portland, South Portland, and Westbro ...

** Springfield Terminal Railway Company **Pan Am Systems also owns 50% of Pan Am Southern, a joint venture of Pan Am Railways and

Norfolk Southern Railway The Norfolk Southern Railway is a Class I freight railroad in the United States formed in 1982 with the merger of Norfolk and Western Railway and Southern Railway. With headquarters in Atlanta, the company operates 19,420 route miles (31 ...

. *Guilford Motor Express, providing intermodal loading/unloading/warehousing services.

Real estate

* NorthPoint, a

mixed-use development Mixed-use is a kind of urban development, urban design, urban planning and/or a zoning type that blends multiple uses, such as residential, commercial, cultural, institutional, or entertainment, into one space, where those functions are to ...

Cambridge, Massachusetts Cambridge ( ) is a city in Middlesex County, Massachusetts, United States. As part of the Boston metropolitan area, the cities population of the 2020 U.S. census was 118,403, making it the fourth most populous city in the state, behind Boston, ...

Transportation-related brands

*Pan Am Brands, distributor of consumer goods bearing the Pan Am logo. **Pan Am Brands

licenses A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...

the name and logos to other companies for certain purposes. An example is

Sony Pictures Television Sony Pictures Television Inc. (abbreviated as SPT) is an American television production and distribution studio. Based at the Sony Pictures Studios complex in Culver City, it is a division of Sony Entertainment's unit Sony Pictures Entertainme ...

, which licensed the brand for the short-lived ''

Pan Am Pan American World Airways, originally founded as Pan American Airways and commonly known as Pan Am, was an American airline that was the principal and largest international air carrier and unofficial overseas flag carrier of the United State ...

'' TV series.

References

External links

Pan Am Brands Licensing

Pan Am Charter services

Pan Am Services
{{Airline holding companies of the United States, state=collapsed Pan Am Transportation companies of the United States Airline holding companies of the United States Companies based in Strafford County, New Hampshire American companies established in 2006 Transport companies established in 2006 2006 establishments in New Hampshire Privately held companies based in New Hampshire Companies based in Portsmouth, New Hampshire Transportation companies based in New Hampshire