Pan Am Railways and Norfolk Southern Receive Approval to Improve Rail Service In New York and New England

Pan Am Railways and Norfolk Southern Receive Approval to Improve Rail Service In New York and New England:

"On May 15, 2008, PAR and NS announced an agreement to improve freight rail service and increase track and yard capacity in upstate New York and New England through a newly formed railroad company, Pan Am Southern. The focus of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass. (approximately 30 miles west of Boston). PAR will transfer to the joint venture this trackage, along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS will transfer cash and other property valued at $137.5 million to the joint venture, $87.5 million of which will be invested within a three-year period in capital improvements on the Patriot Corridor. Included in this investment is a new intermodal and automotive terminal in Saratoga County, N.Y., a new automotive terminal in Ayer, expansion of the existing intermodal terminal in Ayer, as well as track and signal upgrades on the Patriot Corridor. These improvements will be implemented as expeditiously as possible, and will comply with certain conditions imposed as part of the Federal regulatory approval process."