Pan Am Systems
| Company type | Private |
|---|---|
| Industry | Rail transportation, manufacturing, energy, real estate |
| Founded | 1998 |
| Founder | Timothy Mellon |
| Defunct | 2022 |
| Fate | Acquired by CSX Corporation |
| Headquarters | Portsmouth, New Hampshire , United States |
Area served | Northeastern United States |
Key people | Timothy Mellon (founder) |
| Products | Rail transportation, aircraft spare parts, railroad ties, electricity generation, real estate development |
| Parent | CSX Corporation (since 2022) |
Pan Am Systems was a privately owned enterprise based in Portsmouth, New Hampshire, with operations spanning rail transportation, manufacturing and energy sectors, transportation-related brands, and real estate holdings. Established in 1998 by entrepreneur Timothy Mellon, the company previously included an airline division.
In July 2020, Pan Am Systems was placed on the market. On November 30, 2020, CSX Corporation announced a definitive agreement to purchase the company. After undergoing regulatory scrutiny by the Surface Transportation Board, the transaction received approval on April 14, 2022. CSX officially took over Pan Am Systems and its subsidiary Pan Am Railways on June 1, 2022, integrating Pan Am into a temporary CSX subsidiary as part of its corporate consolidation plan.
1981–2020
Guilford Transportation Industries (GTI) was formed in 1981, marking its entry into the railroad sector by acquiring the Maine Central Railroad Company from U.S. Filter Corporation. The company expanded further by purchasing the Boston & Maine Railroad in 1983 and the Delaware and Hudson Railway (D&H) in 1984. Following D&H's bankruptcy declaration in 1988, control shifted from the New York, Susquehanna & Western Railway to direct trustee management until its sale to Canadian Pacific Railway in 1991.
In 1998, GTI acquired the brand rights of Pan American World Airways, leading to the creation of Pan Am Systems. The railroad operations were rebranded as Pan Am Railways in March 2006. The company remained privately held with principal investors including Timothy Mellon—descendant of the Mellon banking dynasty—and David Fink along with his son David A. Fink, both former Penn Central employees.
CSX acquisition
Pan Am Systems was offered for sale in July 2020. On November 30, 2020, an acquisition agreement was announced whereby CSX Corporation, parent company of CSX Transportation, would purchase Pan Am Systems. Under this arrangement, CSX would operate rail service between Mattawamkeag, Maine and Ayer, Massachusetts; Genesee and Wyoming Rail would manage operations from Ayer to Rotterdam, New York; meanwhile, Norfolk Southern retained a 49% ownership interest in Pan Am Southern (PAS). Plans included rerouting intermodal traffic via the B&A line to Worcester, Massachusetts.
On March 25, 2021, due to concerns raised by various state agencies and regional stakeholders, the Surface Transportation Board (STB) classified the acquisition as "Significant," initiating an extended review process. CSX responded on April 30 with a detailed 478-page submission outlining plans for track improvements, addressing disputes over intermodal routing, and proposing fleet upgrades involving multiple locomotive types.
However, on May 26, 2021, the STB deemed CSX’s application "incomplete," citing conflicting information and gaps in data. CSX expressed its intention to amend and resubmit the proposal.
The STB accepted an updated merger filing on July 30, 2021, waiving requirements for environmental and historic assessments while establishing deadlines for additional documentation and public commentary.
The STB granted approval for CSX’s $600 million acquisition of Pan Am Systems on April 14, 2022. CSX commenced operations of Pan Am Railways at midnight on June 1, 2022. Following this transition, Pan Am Systems was merged into a temporary CSX holding company named 747 Merger Sub 2; both organizations are planned to be fully consolidated into CSX.
Air
- Pan American Airways (1998–2004), a U.S.-based airline that provided scheduled flights across the eastern United States under the Pan Am brand, also offering charter services to Puerto Rico and the Dominican Republic. Operations concluded on November 1, 2004, with activities transitioning to its subsidiary Boston-Maine Airways, which flew under the name Pan Am Clipper Connection.
- Boston-Maine Airways (operating as Pan Am Clipper Connection), conducted both charter and scheduled passenger flights connecting the northeastern United States, Florida, and the Caribbean region. In February 2008, the U.S. Department of Transportation moved to revoke its air carrier certificate citing financial instability and management issues. The airline ceased operations on February 29, 2008.
- Pan Am Services, originally established as an aircraft maintenance center, has evolved into a supplier of aircraft spare parts with operational bases in Dover, New Hampshire and Portsmouth, New Hampshire.
Manufacturing and energy
- Perma Treat Corporation, a manufacturer specializing in railroad ties and pressure-treated wood products, operating facilities located in Mattawamkeag, Maine and Durham, Connecticut.
- Aroostook & Bangor Resources, Inc., engaged in recycling used railroad ties to produce electrical power at its facility in Mattawamkeag, Maine.
Rail
- Pan Am Railways (previously known as Guilford Transportation Industries), a regional freight rail network serving northern New England, which includes the following subsidiaries:
- Boston and Maine Corporation
- Maine Central Railroad Company
- Portland Terminal Company
- Springfield Terminal Railway Company
- Holds a 50% stake in Pan Am Southern, a joint venture operated with Norfolk Southern Railway.
- Guilford Motor Express, provides services such as intermodal loading and unloading along with warehousing solutions.
Real estate
- NorthPoint, a mixed-use property development situated in Cambridge, Massachusetts.
- Pan Am Brands, manages distribution and licensing for consumer products featuring the Pan Am logo. This entity licenses the brand to various collaborators, including Sony Pictures Television for the Pan Am television series.