Losses Seen for Conrail Competitors
If Congress allows Norfolk Southern to buy Conrail, the resulting railroad’s competitors may lose “a substantial amount” of rail traffic, an Interstate Commerce Commission study said Tuesday.
The freight most likely to be affected by such a merger would be coal, auto parts and grain, said the 106-page study, which was requested by Rep. James Florio (D-N.J.), a foe of the proposed sale and chairman of the House subcommittee on commerce, transportation and tourism.
Transportation Secretary Elizabeth Hanford Dole has stuck by her view that Norfolk Southern’s bid for the government’s 85% stake in Conrail offers the best hope for the freight carrier’s future because of Norfolk Southern’s stability and experience.
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