WORCESTER, Mass. - Federal regulators have approved CSX's purchase of Pan Am Systems, a regional railroad in the northeastern United States that will expand CSX’s network in New England.

Regulators said the deal should improve Pan Am's rail network because CSX has more capital to invest in the tracks, and customers will benefit from being able to ship their goods across the region on a single railroad. There may also be environmental benefits from the deal because CSX uses newer, more efficient locomotives.

CSX operates a large intermodal facility in Worcester and president and CEO of the chamber of commerce Tim Murray said the facility is a critical piece for the local economy.

“We testified before the surface transportation board because the movement of people and goods is really important to the economic well being of an economy in a region and CSX has made major investments in Worcester and in the Commonwealth to be more efficient,  more cost effective transportation modes available for businesses as they move products and goods and that's good for Central Mass,” Murray said. “It's good for all of New England. And for Central Mass. Nearly 30% of all freight rail that goes throughout New England passes through Central Massachusetts and Worcester.”

Pan Am, which is based in North Billerica, is expected to become part of CSX on June 1.