[Federal Register Volume 86, Number 104 (Wednesday, June 2, 2021)]
[Notices]
[Pages 29623-29624]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-11507]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36472; Docket No. FD 36472 (Sub-No. 1); Docket No. FD 
36472 (Sub-No. 2); Docket No. FD 36472 (Sub-No. 3); Docket No. FD 36472 
(Sub-No. 4); Docket No. FD 36472 (Sub-No. 5); Docket No. AB 1312X]


CSX Corporation and CSX Transportation, Inc., et al.--Control and 
Merger--Pan Am Systems, Inc., Pan Am Railways, Inc., Boston and Maine 
Corporation, Maine Central Railroad Company, Northern Railroad, Pan Am 
Southern LLC, Portland Terminal Company, Springfield Terminal Railway 
Company, Stony Brook Railroad Company, and Vermont & Massachusetts 
Railroad Company; Norfolk Southern Railway--Trackage Rights Exemption--
CSX Transportation, Inc.; Norfolk Southern Railway--Trackage Rights 
Exemption--Providence & Worcester Railroad; Norfolk Southern Railway--
Trackage Rights Exemption--Boston & Maine Corp.; Norfolk Southern 
Railway--Trackage Rights Exemption--Pan Am Southern LLC; Pittsburg & 
Shawmut Railroad--Operation Exemption--Pan Am Southern LLC; SMS Rail 
Lines of New York, LLC--Discontinuance Exemption--in Albany County, 
N.Y.

AGENCY: Surface Transportation Board.

ACTION: Decision No. 3 in STB Finance Docket No. 36472 et al.; notice 
of rejection of application.

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SUMMARY: The Board rejects as incomplete an application seeking 
approval for CSX Corporation (CSXC), CSX Transportation, Inc. (CSXT), 
and 747 Merger Sub 2, Inc., to acquire control of seven rail carriers 
owned by Pan Am Systems, Inc. (Systems), and Pan Am Railways, Inc. 
(PAR), and to

[[Page 29624]]

merge six of those railroads into CSXT. The Board finds that the 
application fails to include the information needed to satisfy the 
Market Analysis requirement for a ``significant'' transaction 
application under our regulations. However, the applicants are 
permitted to file a revised application.

DATES: The effective date of the Board's decision is May 26, 2021. 
Applicants may file a revised application at any time after issuance of 
the Board's decision, but no later than August 26, 2021. Applicants are 
directed to file a letter in this docket by June 7, 2021, indicating if 
and when they anticipate filing a revised application.

ADDRESSES: Any filing submitted in these proceedings should be filed 
with the Board via e-filing on the Board's website. In addition, one 
copy of each filing must be sent (and may be sent by email only if 
service by email is acceptable to the recipient) to each of the 
following: (1) Secretary of Transportation, 1200 New Jersey Avenue SE, 
Washington, DC 20590; (2) Attorney General of the United States, c/o 
Assistant Attorney General, Antitrust Division, Room 3109, Department 
of Justice, Washington, DC 20530; (3) CSX's \1\ and 747 Merger Sub 2's 
representative, Anthony J. LaRocca, Steptoe & Johnson LLP, 1330 
Connecticut Ave. NW, Washington, DC 20036; (4) Systems',\2\ PAR's, and 
PAR Railroads' representative, Robert B. Culliford, Pan Am Systems, 
Inc., 1700 Iron Horse Park, North Billerica, MA 01862; and (5) any 
other person designated as a Party of Record on the service list.
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    \1\ CSXT is a wholly owned subsidiary of CSXC. CSXC and CSXT are 
referred to collectively as CSX.
    \2\ Systems directly and wholly owns PAR, which in turn directly 
and wholly owns four rail carriers: Boston & Maine, Maine Central, 
Portland Terminal, and Springfield Terminal. Boston & Maine directly 
and wholly owns Northern and Stony Brook, as well as a 98% interest 
in V&M. These seven rail carriers will be referred to collectively 
as the PAR Railroads.

FOR FURTHER INFORMATION CONTACT: Amy Ziehm at (202) 245-0391. 
Assistance for the hearing impaired is available through the Federal 
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Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: On April 26, 2021, CSX Corporation CSXC, 
CSXT, 747 Merger Sub 2, Inc. (747 Merger Sub 2), Systems, PAR, Boston 
and Maine Corporation (Boston & Maine), Maine Central Railroad Company 
(Maine Central), Northern Railroad (Northern), Portland Terminal 
Company (Portland Terminal), Springfield Terminal Railway Company 
(Springfield Terminal), Stony Brook Railroad Company (Stony Brook), and 
Vermont & Massachusetts Railroad Company (V&M) (collectively, 
Applicants) filed an application (Application) for Board approval for: 
(1) CSXC, CSXT, and 747 Merger Sub 2 to control the seven PAR Railroads 
controlled by Systems and PAR, and (2) CSXT to merge six of the seven 
railroads into CSXT. This proposal is referred to as the Merger 
Transaction. In addition to the Application for the proposed Merger 
Transaction, there are several related filings for transactions related 
to the Merger Transaction: Four notices of exemption for Norfolk 
Southern Railway Company to acquire trackage rights over existing lines 
owned by four separate railroads; a petition for exemption to allow 
Pittsburg & Shawmut Railroad, LLC d/b/a Berkshire & Eastern Railroad, 
to replace Springfield Terminal as the operator of Pan Am Southern LLC; 
and a notice of exemption to allow SMS Rail Lines of New York, LLC to 
discontinue service on and terminate its lease of a rail line known as 
the Voorheesville Running Track.
    The Board finds that the Application fails to include the 
information needed to satisfy the Market Analysis requirement for a 
``significant'' transaction application under 49 CFR 1180.7. 
Accordingly, the Board is rejecting the Application as incomplete. 
However, Applicants are permitted to file a revised application to 
remedy the deficiencies identified in the Board's decision.
    Additional information is contained in the Board's decision served 
on May 26, 2021, which is available at www.stb.gov.

    Decided: May 26, 2021.

    By the Board, Board Members Begeman, Fuchs, Oberman, Primus, and 
Schultz.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2021-11507 Filed 6-1-21; 8:45 am]
BILLING CODE 4915-01-P