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CRTS Update #03-68
Monday, March 13th, 2000 at 18:40 EST

ORBCOMM and GE Harris Railway Electronics to Provide Satellite
Communications Service to Fleet of CSX Locomotives

DULLES, Va., March 13th, 2000 -- ORBCOMM Global, L.P. (ORBCOMM), the
first commercial provider of global low-Earth orbit (LEO) satellite data
communication services, today announced that CSX Transportation Inc. (CSXT) is
planning to equip approximately 2,800 locomotives with the PINPOINT(TM)
Locomotive Tracking System offered by GE Harris Railway Electronics, L.L.C.
(GE Harris). ORBCOMM is the satellite communications provider for the
PINPOINT system. CSXT is already using the PINPOINT system to track a portion
of its locomotive fleet and plans to install the system on the remainder of
its fleet by mid-year.

Following an extensive search of tracking systems last year, CSXT selected
the GE Harris PINPOINT system to improve locomotive utilization and decrease
operating costs. CSXT found that using the PINPOINT system with ORBCOMM's Web-
based satellite communication services resulted in a significant increase in
locomotive utilization and miles traveled per locomotive. The PINPOINT system
enables railroads to determine each locomotive's position within approximately
100 meters. The PINPOINT system also provides fuel-level status and several
other on-board data reporting features critical to locomotive operations.

"We are excited by the potential savings that we expect to achieve as a
result of the project," said Michael Erenberg, AVP Locomotive Operations of
CSXT. "PINPOINT gave us the ability to improve productivity by knowing when
our locomotives were inactive or misused and by giving us real-time
information to make real-time decisions in an industry that requires
quick decision making."

"We are excited about the launch of the PINPOINT system with CSXT, and are
pleased with the level of integration and support we have received from
ORBCOMM," said Greg Herrema, President and CEO of GE Harris Railway Electronics.

"ORBCOMM is pleased to be working with GE Harris to provide innovative
solutions to the railway industry," said Scott L. Webster, Chairman and Chief
Executive Officer of ORBCOMM. "CSXT has demonstrated its industry leadership
as the first U.S. railroad to deploy this exciting technology. The PINPOINT
Locomotive Tracking system, together with ORBCOMM's satellite communication
services, provides CSXT with access to critical data that can substantially
improve operational performance and fleet utilization, resulting in significant cost savings."



CRTS Update #02-97
Friday, February 18th, 2000 at 21:00 EST

Darby mayor blocks tracks again
After a CSX train parked in town, she parked her Dodge on the rails.
It was her second such protest this week.

By Deborah Bolling

DARBY BOROUGH - Mayor Paula M. Brown again parked her car on the tracks
yesterday afternoon, removing it only after a federal judge issued an
injunction threatening to jail her.

Brown parked her rusty green 1980 Dodge Diplomat, disrupting service for
two hours, in protest against CSX Corp., which which runs freight trains
through Darby Borough and Yeadon on a route between Florida and Maine.

Earlier in the day, a CSX freight train stopped in downtown Darby at
Sixth and Main Streets for more than an hour, blocking all vehicular
traffic and Brown said, presenting a danger to the community.

The incident occurred after 3 p.m., as children were leaving three area
schools. Brown said that more than 150 children who were trying to get
home climbed over and under the stopped train.

Brown said the entire Darby Police Department had to patrol the length
of the track to ensure the children's safety.

"You never know when the train will start and one of these kids will get
killed," said Brown. "We are blocking the tracks until CSX rectifies the
situation."

In response to Brown's action, CSX spokesman Bob Sullivan apologized
that the train had blocked the crossings, but he accused Brown of
"endangering public safety.

"The mayor has taken an action which is rash and which endangers the
welfare of not only its residents and our employees," he said.

Yesterday's incident comes amid growing tension between CSX and
officials in Darby and Yeadon because of derailments in the area. Brown
said there have been six derailments so far this month, the last
occurring late Wednesday.

Officials from CSX said this week that there have only been three.

On Sunday, after a CSX trail derailed near an apartment complex, Brown
parked her car on the same tracks for the first time, and then replaced
it with a borough police car, delaying efforts to remove the derailed
freight and shutting down the line for about 12 hours.

In yesterday's incident, Brown again blocked the tracks after CSX
freight train finally moved. She said she was hoping to prevent another
train from passing through.

The mayor was flanked by several members of the community angry with
CSX.

"My son hopped on one of these stopped trains last year and was badly
hurt when he jumped off after it started moving again," said Carla
Stevenson, a resident. "But this kind of thing happens every day."

Borough Solicitor Fincourt B. Shelton served the mayor the injunction,
which was requested by CSX. Shelton negotiated with CSX on Sunday.
Yesterday, he participated in a hearing from the site of the blockade by
cellular phone with U.S. District Court Judge Jan E. DuBois.

DuBois said he understood Brown's position, but warned that it was
illegal.

Shelton said that although he was an officer of the court, he regretted
having to serve the mayor the injunction.

"The judge agreed that it was dangerous, but said we have to move," said
Shelton. "So I will have to serve her, even though I don't like what I
am doing."

Shelton served the injunction at 6:35 p.m., and Brown moved her car 15
minutes later.

"I'm going to move my car on the sole condition that somebody listens to
us," said Brown. "I'm only doing this because I need to stay here and I
can't lose time by going to jail."



CRTS Update #12-06
Wednesday, December 2nd, 1999 at 16:30 EST

OPERATING PLAN CHANGE PROPOSAL
CSX INTERMODAL APL/PLACER NORTHERN PLAN (CHICAGO-EAST)

CSXI HAS SIGNED A CONTRACT WITH APL/PACER, INC. TO HANDLE AMERICAN
PRESIDENT LINES (APL) RAIL TRAFFIC THAT IS CURRENTLY BEING HANDLED OVER
NORFOLK SOUTHERN. UNDER THIS CONTRACT, CSXI EXPECTS TO ADD OVER 254,000
ADDITIONAL LOADS IN 2000 AND WILL HANDLE OVER 95% OF THEIR
TRANSCONTINENTAL BUSINESS EAST OF THE MISSISSIPPI RIVER IN AN 'ALL OR
NOTHING' LONG TERM CONTRACT. THIS VOLUME IS A SIGNIFICANT PORTION OF
THE EXPECTED **21%** INCREASE IN INTERMODAL VOLUME IN 2000 VS. 1999
(NORMALIZED).

TERMINAL IMPACTS WILL BE SIGNIFICANT, THE FOLLOWING TERMINALS WILL SEE
A GREATER THAN 15% INCREASE OVER CURRENT LEVELS:

ATLANTA 43%
BALTIMORE 21%
BUFFALO 103%
CHARLOTTE 110%
PORTSMOUTH 37%
PHILADELPHIA 21%

TO ACCOMODATE THIS SIGNFICANT INCREASE IN VOLUMES REQUIRES MAJOR
CHANGES IN THE INTERMODAL NETWORK. THIS PROPOSAL COVERS TRAIN CHANGES
FOR THE 'NORTHERN' PORTION OF THE CSXT NETWORK (CHICAGO-EAST) WHILE A
SECOND PROPOSAL WILL BE RELEASED WHICH COVERS CHANGES ASSOCIATED WITH
TRAFFIC MOVING THROUGH THE MEMPHIS AND NEW ORLEANS GATEWAYS.
CSX INTERMODAL EXPECTS TO SEE THE FIRST SEGMENT OF NEW BUSINESS MOVING
THROUGH THE GATEWAYS THE FIRST WEEK IN DECEMBER.


MAJOR ADJUSTMENTS CHICAGO-EAST INCLUDE:

A. EXTEND Q130/Q139 TO OPERATE CHICAGO-PORTSMOUTH

B. Q130/Q133 WILL BECOME PURE CHICAGO-BALTIMORE TRAINS

C. ***NEW*** Q152 TO OPERATE CHICAGO-KEARNY 3 DAYS/WEEK ON A MANAULLY
AUTHORIZED BASIS

D. ***NEW*** Q140/Q143 TO OPERATE ONE DAY/WEEK BETWEEN CHICAGO AND
CINCINNATI TO HANDLE TOYOTA-GEORGETOWN, KY CONTAINERS

E. ***NEW*** Q190/Q191 TO OPERATE BETWEEN KEARNY AND
PHILADELPHIA-GREENWICH WITH CONNECTIONS FROM/TO Q156/Q157



CRTS Update #11-30
Wednesday, November 10th, 1999 at 21:30 EST

SELKIRK, NY OPERATING SCHEDULE:

Time    Train Symbol    Frequency                                       Conrail Symbol
01:00   Q-418           Daily                                           CASE
02:30   Q-254           Daily                                           ML-488
03:00   Q-160           Daily                                           TV-8
03:30   Q-161           Daily                                           TV-77
03:30   Q-186           Wednesday through Sunday                        TV-186
03:45   Q-150           Daily                                           TV-10B
03:50   Q-403           As Required                                     SENS
04:00   Q-108           Wednesday through Friday                        Mail-46
04:00   Q-174           Daily                                           TV-174
04:10   Q-164           Daily                                           TV-304
04:15   Q-115           Tuesday through Sunday                          TV-5
04:35   L-108           Saturday through Monday                         Mail-46
04:45   Q-159           Monday through Thursday                         TV-307
04:45   L-159           Friday and Saturday                             TV-307
04:45   Q-264           Daily                                           ML-482
05:00   Q-420           Daily                                           SEBO
05:00   Q-439           Daily                                           SEBU
05:30   Q-117           Tuesday through Sunday                          TV-7
05:40   Q-157           Tuesday through Friday                          TV-301
05:45   Q-110           Wednesday through Friday and Sunday             TV-100
05:45   L-110           Saturday only                                   TV-102
05:45   Q-168           Wednesday through Friday                        Mail-8S
05:45   Q-185           Tuesday through Sunday                          TV-185
05:45   Q-290           Daily                                           ML-430
06:00   Q-232           As Required                                     BUSE
06:10   Q-109           Tuesday through Saturday                        TV-99
06:30   Q-118           Monday through Friday                           Mail-10
06:30   Q-380           Daily                                           IHSE
07:00   Q-116           Wednesday through Monday                        TV-6
07:00   Q-165           Daily                                           TV-261
07:00   L-409           Tuesday/Thursday/Saturday                       SETA
07:30   Q-271           Daily                                           ML-401
07:30   Q-433           Daily                                           SEOI
08:30   Q-113           Tuesday through Saturday                        TV-13
08:30   Q-422           Daily                                           SEPW
09:00   Q-409           Daily                                           SETA
09:15   Q-273           Daily                                           ML-407
10:00   Q-417           Daily                                           SECA
10:30   Q-390           Daily                                           NPSE
10:30   Q-430           Daily                                           OPSE
10:45   Q-158           Friday only                                     TV-90
10:45   Q-170           Friday only                                     TV-80W
11:00   Q-387           Daily                                           SEBB
11:00   Q-620           Daily                                           CNSE
11:15   Q-421           Daily                                           BOSE
11:20   Q-119           Tuesday through Friday                          TV-9
11:20   L-119           Saturday only                                   TV-9
11:30   Q-436           Daily                                           SEFR
12:01   L-158           Sunday only                                     TV-90
12:05   Q-169           Tuesday through Friday                          TVBN
12:05   L-169           Saturday only                                   TVBN
12:45   Q-111           Tuesday through Sunday                          Mail-5
13:00   Q-426           Daily                                           SENE
14:30   Q-628           Daily                                           NFSE
16:00   Q-263           Daily                                           TOMT
16:00   Q-424           Daily                                           SPSE
16:45   Q-432           Daily                                           SABU
17:30   Q-621           Daily                                           SECN
17:45   Q-389           Daily                                           SEBR
18:30   Q-364           Daily                                           INSE
18:45   Q-277           Daily                                           ML-433
18:45   Q-279           Daily                                           new train
18:45   Q-410           Daily                                           RYSE
19:00   Q-629           Daily                                           SENF
20:00   Q-156           Daily                                           TV-302
20:00   Q-404           Daily                                           OISE
20:00   Q-437           Daily                                           PWSE            
20:15   Q-386           Daily                                           CWSE
20:15   Q-423           Daily                                           FRSE
20:30   Q-112           Tuesday through Thursday, Saturday and Sunday   TV-24
20:30   Q-429           Daily                                           SESP
21:30   Q-265           Daily                                           LMSE
21:30   Q-402           As Required                                     NSSE            
21:55   Q-268           Daily                                           ML-268
22:00   Q-367           Monday through Saturday                         SEIN
22:00   Q-427           Daily                                           NESE
22:15   Q-114           Daily                                           TV-14
22:15   Q-235           As Required                                     LMSE
22:30   Q-431           Sunday through Thursday                         SELI
22:40   Q-162           Daily                                           TV-18
23:00   L-112           Friday only                                     TV-24
23:00   Q-374           Daily                                           NLSE
23:00   Q-385           Daily                                           SEBU
23:00   Q-425           Daily                                           LASE
23:00   Q-428           Daily                                           SELA


Information courtesy of: Ben Kron



Saturday, October 23rd, 1999 at 13:20 EDT


 SD70MAC        13/15 units
        739     from    4144    06/23/99 renumbered in error - re-renumbered 789
        775     from    4130    07/12/99
        776     from    4131    08/13/99
        777     from    4132    09/23/99
        778     from    4133    10/07/99
        779     from    4134    07/09/99
        780     from    4135    07/19/99
        781     from    4136    08/31/99
        783     from    4138    08/12/99
        785     from    4140    08/16/99
        786     from    4141    08/10/99
        787     from    4142    08/27/99
        788     from    4143    08/27/99
        789     no details


SD80MAC 13/13 units     renumbering complete            
        800     from    4100    08/05/99
        801     from    4104    07/20/99                CSXT Paint
        802     from    4107    07/19/99
        803     from    4108    07/23/99
        804     from    4110    07/15/99
        805     from    4112    06/23/99
        806     from    4113    09/08/99
        807     from    4116    07/30/99
        808     from    4121    07/07/99
        809     from    4122    08/09/99
        810     from    4124    08/26/99
        811     from    4125    07/20/99
        812     from    4128    08/31/99


MT-4            1/2 units
        1005    from    1018    07/12/99


MT-6            7/13 units
        1010    no details
        1012    no details
        1014    from    1116    08/13/99
        1015    from    1118    06/29/99
        1016    no details
        1017    from    1127    09/23/99
        1018    no details


SW1500          23/32 units
        1070    from    9511    09/28/99
        1071    from    9518    09/09/99
        1072    from    9526    08/09/99
        1073    from    9529    08/16/99
        1074    from    9533    06/29/99
        1075    from    9537    07/28/99
        1076    from    9541    06/29/99
        1077    from    9544    08/06/99
        1078    from    9545    07/14/99
        1081    no details
        1082    from    9559    08/12/99
        1083    from    9561    08/12/99
        1084    from    9563    08/23/99
        1086    from    9570    08/19/99
        1089    from    9583    08/16/99
        1090    from    9584    07/22/99
        1091    from    9585    07/28/99
        1092    from    9593    06/23/99
        1094    from    9597    08/04/99
        1095    from    9599    09/23/99
        1097    from    9610    10/11/99
        1098    from    9613    08/20/99
        1129    from    9504    08/06/99


SW1001          8/9 units       
        1120    from    9401    10/04/99
        1121    no details      
        1122    no details
        1123    no details
        1124    no details
        1125    no details
        1126    no details
        1127    no details


GP15-1          25/42 units
        1525    from    1600    09/07/99
        1532    no details
        1533    from    1611    08/09/99
        1534    from    1616    09/10/99
        1535    from    1617    08/16/99
        1536    from    1618    08/16/99
        1537    no details
        1538    from    1622    08/30/99
        1539    from    1628    06/23/99
        1541    from    1630    07/16/99
        1542    from    1631    08/02/99
        1546    from    1639    07/26/99
        1549    from    1645    10/14/99
        1552    from    1655    08/12/99
        1553    no details
        1554    no details
        1555    no details
        1556    from    1664    08/24/99
        1558    from    1669    09/17/99
        1560    from    1673    07/22/99
        1561    from    1675    08/11/99
        1562    from    1678    07/20/99
        1563    from    1683    08/03/99
        1564    from    1686    08/13/99
        1566    from    1690    09/07/99


GP38            48/57 units
        1943    no details
        1944    from    7670    10/11/99
        1945    from    7671    09/13/99
        1946    from    7672    09/17/99
        1947    from    7673    08/24/99
        1948    from    7674    08/06/99
        1949    from    7677    09/22/99
        1950    from    7678    08/10/99
        1951    from    7680    08/02/99
        1952    from    7682    08/09/99
        1953    no details
        1954    no details
        1955    no details
        1956    from    7688    08/19/99
        1957    from    7689    08/23/99
        1958    from    7690    10/04/99
        1959    from    7713    08/16/99
        1960    from    7715    08/30/99
        1961    no details
        1962    from    7718    10/07/99
        1963    from    7719    07/07/99
        1967    from    7729    10/11/99
        1968    no details
        1969    from    7735    09/22/99
        1973    no details
        1974    from    7875    09/28/99
        1975    no details
        1976    from    7885    08/17/99
        1977    from    7892    10/04/99
        1980    from    7905    09/13/99
        1981    from    7907    08/24/99
        1982    from    7912    07/29/99
        1983    from    7915    09/02/99
        1984    from    7919    08/18/99
        1985    from    7920    08/11/99
        1986    from    7921    08/23/99
        1987    from    7922    09/13/99
        1988    from    7923    10/04/99
        1989    from    7925    10/05/99
        1990    from    7926    09/07/99
        1991    from    7927    08/09/99
        1992    no details
        1993    from    7931    08/26/99
        1995    from    7933    09/28/99
        1996    from    7935    09/17/99
        1997    no details
        1998    from    7938    08/13/99
        1999    no details


SD38            8/14 units
        2455    no details
        2460    from    6940    08/30/99
        2461    from    6942    06/29/99
        2463    from    6948    09/23/99
        2464    from    6953    07/12/99
        2465    no details
        2466    from    6957    08/13/99
        2467    no details


GP38-2          79/98 units
        2717    no details
        2718    from    8045    08/10/99 
        2719    from    8050    10/04/99   
        2720    from    8051    08/10/99
        2721    from    8053    09/09/99
        2722    from    8055    07/28/99
        2725    from    8065    09/21/99
        2726    from    8068    08/09/99
        2727    from    8072    08/06/99
        2728    from    8074    07/21/99
        2729    from    8075    08/16/99
        2730    from    8076    10/15/99
        2731    from    8082    08/30/99
        2732    from    8087    07/13/99
        2733    no details
        2736    from    8095    09/24/99
        2737    from    8098    08/30/99
        2738    from    8103    09/17/99
        2739    no details
        2741    from    8108    08/18/99
        2742    from    8109    07/29/99
        2744    from    8115    07/01/99
        2748    from    8130    09/20/99
        2751    from    8137    06/23/99
        2752    from    8140    07/28/99
        2753    from    8144    09/01/99
        2754    from    8145    09/20/99
        2755    from    8146    06/23/99
        2757    from    8150    09/13/99
        2759    from    8162    08/30/99
        2760    from    8163    08/24/99
        2761    from    8164    08/30/99
        2762    from    8169    09/17/99
        2763    from    8174    08/02/99
        2765    no details
        2766    from    8177    08/16/99
        2767    from    8178    09/10/99
        2768    from    8179    10/07/99
        2769    from    8183    07/20/99
        2771    from    8189    06/18/99
        2772    from    8190    10/05/90
        2774    from    8195    08/16/99
        2775    from    8197    07/22/99
        2777    from    8199    07/16/99
        2778    from    8200    08/09/99
        2779    from    8201    09/28/99
        2780    from    8204    07/20/99
        2781    from    8205    09/17/99
        2782    from    8206    08/13/99
        2783    from    8210    10/05/99
        2784    from    8215    08/05/99
        2785    from    8216    07/12/99
        2786    from    8217    10/07/99
        2787    from    8218    08/16/99
        2788    from    8219    10/07/99
        2789    from    8220    08/19/99
        2790    from    8222    10/04/99
        2792    from    8225    08/23/99
        2793    from    8226    08/30/99
        2794    from    8228    07/29/99
        2795    from    8234    07/26/99
        2796    from    8236    07/30/99
        2797    from    8237    07/29/99
        2799    from    8241    08/27/99
        2800    from    8246    07/20/99
        2801    from    8249    10/05/99
        2802    from    8250    08/17/99
        2803    from    8251    09/13/99
        2804    from    8260    08/23/99
        2805    from    8261    06/24/99
        2806    from    8265    07/13/99
        2807    from    8266    06/30/99
        2808    from    8268    07/07/99
        2809    from    8273    07/07/99
        2810    from    8274    07/07/99
        2811    from    8275    09/17/99
        2812    from    8278    08/23/99
        2813    from    8279    06/29/99


B23-7           37/42 units
        3145    from    1916    07/07/99
        3146    from    1919    07/27/99
        3147    from    1920    06/23/99
        3148    from    1922    06/24/99
        3149    from    1923    07/26/99
        3150    from    1925    08/31/99
        3151    from    1926    06/23/99
        3152    from    1931    07/15/99
        3154    from    1936    06/29/99
        3155    from    1937    07/08/99
        3156    from    1938    10/04/99
        3157    from    1939    08/02/99
        3158    from    1940    08/03/99
        3159    from    1943    08/09/99
        3160    no details
        3161    from    1954    09/07/99
        3163    from    1957    08/30/99
        3165    from    1964    09/17/99
        3167    from    1992    09/13/99
        3168    from    1994    07/14/99
        3169    from    1995    08/30/99
        3170    from    1996    08/17/99
        3171    from    1999    06/18/99
        3172    from    2001    07/19/99
        3173    from    2006    07/14/99
        3174    from    2007    06/15/99
        3175    from    2014    08/23/99
        3176    from    2017    07/19/99
        3177    from    2019    06/29/99
        3178    from    2021    07/07/99
        3179    from    2023    07/02/99
        3180    from    2801    07/12/99
        3181    from    2802    07/02/99
        3182    from    2806    07/30/99
        3183    from    2813    08/11/99
        3184    from    2816    08/23/99
        3189    from    1980    09/20/99
        

B23-7 Super 7   4/4 units               renumbering complete
        3185    from    2030    07/15/99
        3186    no details
        3187    from    2036    08/20/99
        3188    from    2039    08/09/99


GP40-2          46/53 units
        4401    from    3277    09/17/99
        4402    from    3284    09/17/99
        4403    from    3286    07/26/99
        4404    no details
        4405    from    3293    07/27/99
        4406    from    3295    07/28/99
        4408    from    3297    07/20/99
        4409    from    3299    07/21/99
        4410    from    3301          ?
        4411    no details
        4412    from    3306    10/12/99
        4413    from    3308    06/24/99
        4415    from    3314    07/26/99
        4416    from    3318    07/13/99
        4417    from    3320    06/23/99
        4418    from    3321    08/16/99
        4420    from    3325    08/16/99
        4421    from    3331    10/04/99
        4422    from    3336    10/04/99
        4424    from    3339    09/28/99
        4425    from    3340    09/13/99
        4426    from    3342    09/29/99
        4427    from    3343    09/17/99
        4428    from    3345    09/21/99
        4429    from    3346    08/27/99
        4430    from    3354    08/27/99
        4431    from    3356    07/19/99
        4432    from    3357    07/30/99
        4433    from    3358    06/23/99
        4434    from    3359    06/24/99
        4435    from    3361    07/20/99
        4436    from    3363    07/22/99
        4437    from    3365    08/09/99
        4438    from    3366    07/15/99
        4439    from    3368    10/05/99
        4440    from    3369    10/11/99
        4441    from    3373    08/17/99
        4443    from    3375    06/23/99
        4444    from    3379    10/05/99
        4445    from    3380    08/11/99
        4446    no details
        4447    from    3390    10/14/99
        4449    from    3393    10/07/99
        4450    from    3396    08/20/99
        4451    from    3398    08/16/99
        4452    from    3403    08/06/99


B36-7           18/23 units
        5783    from    5001    09/01/99
        5784    from    5002    09/21/99
        5787    from    5009    07/26/99
        5788    from    5011    08/13/99
        5789    from    5013    07/07/99
        5790    from    5015    09/13/99
        5791    from    5018    09/28/99
        5793    from    5024    09/02/99
        5794    from    5025    08/18/99
        5795    from    5029    10/15/99
        5797    from    5033    09/13/99
        5798    from    5034    07/15/99
        5799    from    5038    09/17/99
        5800    from    5041    08/30/99
        5802    from    5046    08/02/99         
        5803    from    5049    08/18/99
        5804    from    5050    07/23/99
        5805    from    5052    07/02/99


B40-8           11/12 units
        5950    from    5060    08/02/99
        5951    from    5061    06/29/99
        5952    from    5062    09/20/99
        5953    from    5065    09/01/99
        5954    no details
        5955    from    5071    07/12/99
        5956    from    5074    10/11/99
        5958    from    5076    10/04/99
        5959    from    5080    07/20/99
        5960    from    5086    08/12/99
        5961    from    5087    06/23/99


C30-7A          19/21 units
        7095    from    6551    06/29/99
        7097    from    6558    08/20/99
        7098    from    6560    06/15/99
        7099    from    6564    06/18/99
        7100    from    6565    08/20/99
        7101    no details
        7102    from    6571    06/23/99
        7103    from    6572    07/26/99        
        7105    from    6575    09/07/99
        7106    from    6576    08/11/99
        7107    from    6577    07/07/99
        7108    from    6578    06/25/99
        7109    from    6579    07/09/99
        7110    from    6581    09/13/99
        7111    from    6583    10/04/99
        7112    from    6586    08/02/99
        7113    from    6587    09/02/99
        7114    from    6588    06/25/99
        7115    from    6594    09/01/99


C36-7           11/11 units     renumbering complete
        7116    from    6622    06/23/99
        7117    from    6626    06/18/99
        7118    from    6628    10/04/99
        7119    from    6629    08/17/99
        7120    from    6630    08/06/99
        7121    from    6633    09/13/99
        7122    from    6634    10/04/99
        7123    from    6635    07/12/99
        7124    from    6638    08/06/99
        7125    from    6640    07/12/99
        7126    from    6642    07/27/99


C40-8W          86/98 units
        7300    from    6050    08/11/99
        7301    from    6052    08/20/99
        7302    from    6054    07/15/99
        7303    from    6055    07/19/99
        7304    from    6059    10/11/99
        7305    from    6063    08/13/99
        7306    from    6066    09/23/99
        7307    from    6067    08/30/99
        7308    from    6072    09/07/99
        7309    from    6075    08/02/99
        7310    no details
        7312    no details
        7313    from    6084    06/23/99
        7314    from    6085    08/13/99
        7316    from    6089    08/16/99
        7317    from    6090    09/03/99
        7318    from    6093    07/30/99
        7319    from    6095    07/15/99
        7320    from    6100    07/26/99
        7321    from    6104    07/28/99
        7322    no details
        7324    from    6115    08/13/99
        7326    from    6119    08/04/99
        7328    from    6122    06/18/99                CSXT Paint
        7329    from    6126    09/13/99
        7330    from    6128    08/02/99
        7331    from    6129    08/04/99
        7332    from    6132    06/23/99                CSXT Paint
        7333    from    6134    07/22/99
        7334    from    6138    09/07/99
        7335    from    6139    07/26/99
        7336    from    6142    06/24/99
        7337    from    6143    10/12/99
        7338    from    6146    07/30/99
        7339    from    6147    06/24/99                CSXT Paint
        7340    from    6148    08/19/99
        7341    from    6151    08/31/99
        7342    from    6154    06/29/99        
        7343    from    6156    08/06/99
        7344    from    6161    08/11/99                CSXT Paint
        7345    from    6162    07/29/99
        7346    from    6163    09/22/99        
        7347    from    6164    06/18/99                CSXT Paint
        7348    from    6167    07/22/99
        7349    from    6169    08/23/99
        7350    from    6172    08/16/99
        7351    from    6177    09/09/99
        7352    from    6179    07/12/99                CSXT Paint
        7353    from    6181    08/06/99
        7354    from    6183    08/19/99
        7355    from    6186    08/02/99
        7356    from    6190    06/23/99
        7357    from    6192    08/02/99
        7358    from    6193    10/14/99
        7359    from    6194    08/03/99
        7360    from    6198    08/20/99
        7361    from    6201    07/26/99
        7362    from    6203    07/12/99
        7363    from    6204    08/12/99
        7365    from    6208    07/22/99
        7366    from    6213    08/02/99
        7367    from    6215    08/02/99
        7368    from    6217    09/28/99
        7369    from    6219    08/23/99
        7370    from    6223    07/16/99
        7371    from    6224    06/29/99
        7372    from    6227    08/09/99
        7373    from    6229    09/28/99
        7374    from    6232    08/11/99
        7375    from    6233    07/07/99
        7376    from    6238    07/16/99
        7378    from    6242    07/28/99
        7379    from    6244    08/20/99
        7380    from    6246    08/18/99
        7381    from    6247    07/22/99
        7382    from    6249    07/21/99
        7384    from    6255    08/03/99
        7385    from    6258    09/03/99
        7387    from    6263    09/24/99
        7388    from    6265    08/13/99
        7390    from    6270    08/05/99
        7391    from    6272    08/30/99
        7393    from    6277    06/23/99
        7394    from    6280    06/29/99
        7395    from    6282    07/12/99
        7396    from    6284    06/23/99


C32-8           3/4 units
        7476    from    6610    09/03/99
        7477    from    6612    06/23/99
        7479    from    6618    07/20/99


C39-8           9/9 units               renumbering complete
        7480    from    6001    09/02/99
        7481    from    6002    07/13/99
        7482    from    6005    07/20/99
        7483    from    6008    09/09/99
        7484    from    6009    08/27/99
        7485    from    6013    09/28/99
        7486    from    6018    08/05/99
        7487    from    6019    09/23/99
        7488    from    6020    07/07/99        


C40-8           10/11 units
        7489    from    6025    07/13/99
        7490    from    6033    07/13/99
        7491    from    6036    08/16/99
        7492    no details
        7493    from    6038    08/03/99
        7494    from    6039    07/21/99
        7495    from    6040    08/04/99
        7496    from    6042    07/19/99
        7497    from    6044    08/06/99
        7498    from    6049    08/02/99


SD50            53/57 units
        8499    from    6701    08/03/99
        8644    from    6703    08/12/99
        8645    from    6704    08/09/99
        8646    from    6705    07/20/99
        8647    from    6709    07/12/99
        8648    from    6711    07/21/99
        8649    from    6718    07/19/99
        8650    from    6719    07/12/99
        8652    no details
        8653    from    6726    07/23/99
        8654    from    6728    08/16/99
        8655    from    6731    07/19/99
        8656    from    6732    09/13/99
        8657    from    6736    09/07/99
        8658    from    6738    08/23/99
        8659    from    6739    09/07/99
        8660    from    6740    10/05/99
        8661    from    6741    07/13/99
        8662    from    6744    07/13/99
        8663    from    6746    08/16/99
        8664    from    6747    06/25/99
        8665    from    6751    07/29/99
        8666    from    6756    07/20/99
        8667    from    6757    08/16/99
        8668    from    6758    06/15/99
        8669    from    6759    09/17/99
        8670    from    6760    08/20/99
        8671    from    6763    07/19/99
        8672    from    6764    09/23/99
        8674    from    6768    07/22/99
        8675    from    6771    07/08/99
        8677    from    6781    06/30/99
        8678    from    6784    08/31/99
        8679    from    6786    09/17/99
        8680    from    6788    08/17/99
        8681    from    6790    07/22/99
        8682    from    6791    08/27/99
        8683    from    6795    08/24/99
        8684    from    6800    08/03/99
        8685    from    6801    08/16/99
        8686    from    6803    09/23/99
        8687    from    6806    08/27/99
        8688    from    6807    10/07/99
        8689    from    6813    08/12/99
        8690    from    6814    07/14/99
        8691    from    6815    09/07/99
        8692    from    6816    08/11/99
        8693    from    6818    10/07/99
        8694    from    6819    09/24/99
        8695    from    6823    08/09/99
        8696    from    6825    08/24/99
        8697    from    6826    08/12/99
        8699    from    6834    07/13/99


SD60            11/12 units
        8710    from    6841    09/28/99
        8711    from    6842    07/26/99
        8712    from    6844    09/22/99
        8713    from    6847    08/16/99
        8714    from    6850    07/21/99
        8715    from    6851    06/23/99
        8716    from    6856    07/30/99
        8717    from    6860    08/12/99
        8718    from    6863    08/09/99
        8719    from    6864    08/09/99
        8720    from    6865    07/01/99


SD60I           34/34 units     renumbering complete    
        8722    from    5575    08/02/99
        8723    from    5576    08/27/99
        8724    from    5579    09/17/99
        8725    from    5583    08/18/99
        8726    from    5585    09/07/99
        8727    from    5588    08/04/99
        8728    from    5589    08/27/99
        8729    from    5591    08/27/99
        8730    from    5594    09/22/99
        8731    from    5597    09/29/99
        8732    from    5599    09/10/99
        8733    from    5601    09/07/99
        8734    from    5604    08/02/99
        8735    from    5609    09/17/99
        8736    no details
        8737    from    5614    07/13/99
        8738    from    5615    08/17/99
        8739    from    5616    07/22/99
        8740    from    5619    07/09/99
        8741    from    5627    10/04/99
        8742    from    5628    08/05/99                CSXT Paint      
        8743    from    5630    07/12/99
        8744    from    5631    07/15/99
        8745    from    5633    07/16/99
        8746    from    5634    08/18/99
        8747    from    5635    06/23/99
        8748    from    5637    09/13/99
        8749    from    5639    07/28/99
        8750    from    5642    08/24/99
        8751    from    5645    07/22/99
        8752    from    5647    07/28/99
        8753    from    5649    08/02/99
        8754    from    5652    07/22/99
        8755    from    5654    10/11/99


SD60M           30/31 units
        8756    from    5500    08/06/99
        8757    from    5502    08/03/99
        8758    from    5505    07/16/99
        8759    from    5508    06/28/99                CSXT Paint
        8760    from    5509    10/04/99
        8761    no details
        8762    from    5514    06/23/99                CSXT Paint
        8763    from    5516    07/22/99                CSXT Paint
        8764    from    5518    08/27/99
        8765    from    5521    08/23/99
        8766    from    5524    10/07/99
        8767    from    5525    06/11/99                CSXT Paint
        8768    from    5528    06/18/99                CSXT Paint
        8769    from    5534    06/18/99                CSXT Paint
        8770    from    5535    07/16/99
        8771    from    5536    09/09/99
        8772    from    5540    09/07/99
        8773    from    5543    09/10/99
        8774    from    5544    08/27/99
        8775    from    5545    06/23/99
        8776    from    5547    09/17/99
        8777    from    5549    07/28/99
        8778    from    5551    09/28/99
        8779    from    5555    08/16/99
        8781    from    5561    08/31/99
        8782    from    5562    07/16/99
        8783    from    5566    08/03/99
        8784    from    5567    09/13/99
        8785    from    5569    07/26/99
        8786    from    5573    10/08/99


SD40-2          83/90 units
        8801    from    6370    08/26/99
        8802    from    6372    08/04/99
        8803    from    6373    07/20/99
        8804    from    6375    08/06/99
        8806    from    6378    07/20/99
        8807    from    6379    09/07/99
        8808    from    6382    08/23/99
        8809    from    6383    09/23/99
        8810    from    6386    08/05/99
        8811    from    6388    06/29/99
        8812    from    6391    07/12/99
        8813    from    6392    08/02/99
        8814    from    6393    10/11/99
        8815    from    6396    08/09/99
        8817    from    6401    07/13/99
        8818    from    6402    07/22/99
        8819    from    6405    08/23/99
        8820    from    6408    09/23/99
        8821    from    6411    08/17/99
        8822    from    6413    08/19/99
        8823    from    6420    07/20/99
        8824    from    6425    07/28/99
        8825    from    6426    07/29/99
        8826    no details
        8827    from    6430    07/19/99
        8828    from    6431    08/16/99
        8829    from    6433    07/21/99
        8830    from    6435    08/10/99
        8831    from    6439    08/09/99
        8832    from    6440    10/04/99
        8833    from    6442    08/31/99
        8834    from    6443    07/23/99
        8835    from    6452    08/09/99
        8836    from    6460    09/28/99
        8837    from    6461    07/21/99
        8838    from    6462    08/16/99
        8839    from    6463    07/23/99
        8840    from    6465    08/23/99
        8841    no details
        8842    from    6473    08/16/99
        8843    from    6477    10/12/99
        8844    from    6480    08/13/99
        8845    from    6481    09/13/99
        8846    from    6482    10/07/99
        8847    from    6484    09/23/99
        8848    from    6485    07/07/99
        8849    no details
        8850    from    6490    08/27/99
        8851    from    6492    08/13/99
        8853    from    6494    08/12/99
        8854    from    6496    08/02/99
        8855    from    6497    07/26/99
        8856    from    6498    08/06/99
        8857    from    6500    07/19/99
        8858    from    6502    09/08/99
        8859    from    6508    08/24/99
        8860    from    6509    08/11/99
        8861    from    6511    08/31/99
        8862    from    6513    07/28/99
        8863    from    6517    07/23/99
        8864    from    6518    07/26/99
        8865    from    6521    07/23/99
        8866    from    6522    07/21/99
        8868    from    6524    09/20/99
        8869    from    6960    08/16/99
        8870    from    6963    08/23/99
        8871    from    6968    07/27/99
        8872    from    6969    06/23/99
        8873    from    6971    06/24/99
        8875    from    6974    08/27/99
        8876    from    6975    10/11/99
        8877    from    6980    06/23/99
        8878    from    6981    09/01/99
        8879    from    6983    08/03/99
        8880    from    6989    07/30/99
        8881    from    6991    09/20/99
        8882    from    6992    07/14/99
        8883    from    6994    09/13/99
        8884    from    6995    10/04/99
        8885    from    6999    09/01/99
        8886    from    6661    08/04/99
        8887    no details
        8888    from    6410    08/05/99
        8889    from    6663    08/04/99


SD45-2          3/3 units
        8973    from    6657    10/14/99
        8974    from    6658    08/16/99
        8976    from    6665    10/14/99



693/812 units as of 10/19/99




CRTS Update #09-101
Friday, September 10th, 1999 at 11:00 EDT

RINGLING BROTHERS & BARNUM BAILEY BLUE UNIT COMING:
The Ringling Brothers & Barnum Bailey blue unit circus train will
arrive in former Conrail territory early next week. It will travel over
former Conrail trackage now owned by both CSXT and Norfolk Southern. A
schedule of upcoming engagements is as follows:

Kemper Arena, Kansas City, MO
Friday, September 10th, 1999 through Sunday, September 12th, 1999

Market Square Arena, Indianapolis, IN:
Wednesday, September 15th, 1999 through Sunday, September 19, 1999

Van Andel Arena, Grand Rapids, MI:
Wednesday, September 22nd, 1999 through Sunday, September 26th, 1999

Marine Midland Arena, Buffalo, NY:
Thursday, September 30th, 1999 through Sunday, October 3rd, 1999

Joe Louis Arena, Detroit, MI:
Thursday, October 7th, 1999 through Sunday, October 10th, 1999

FleetCenter, Boston, MA:
Friday, October 15th, 1999 through Sunday, October 24th, 1999

Civic Arena, Pittsburgh, PA:
Wednesday, October 27th, 1999 through Sunday, October 31st, 1999



CRTS Update #10-39
Saturday, October 10th, 1998 at 22:00 EDT

Rail Freight Traffic Rises During Quarter

WASHINGTON, October 8th, 1998 - Freight traffic on U.S. railroads rose
both during the month of September and during the third quarter in
comparison with the same periods last year, the Association of American
Railroads (AAR) reported today.

Carload freight increased 3.8 percent during the month and 1.9 percent
for the quarter, said AAR Senior Assistant Vice President Craig F.
Rockey. "Automotive traffic has recovered from the General Motors strike
earlier this summer, with volume up 22.9 percent for the month and 11.9
percent for the quarter."

"Coal traffic was especially strong during September, registering a 5.5
percent gain over September 1997, Mr. Rockey said. "For the quarter,
coal loadings rose 4.0 percent. Grain traffic also began to show some
signs of recovery, with volume up 7.0 percent for the month and 1.6
percent for the quarter."

Intermodal traffic, which is not included in the carload data, was not
as strong as carload freight, he noted. Volume was off 1.4 percent for
September and 0.5 percent for the quarter. "That decline was due to
lower trailer volume, as container traffic was up both for the quarter
and for September itself."

Canadian railroads experienced the reverse of the U.S. situation, with
carload freight down and intermodal traffic up during both the third
quarter and September. Carload traffic was down 4.1 percent for the
month and 9.1 percent for the quarter, while intermodal registered a 2.3
percent rise for the month and 4.4 percent gain for the quarter.

"Canadian carload freight was especially hard hit by the weak demand for
export grain," Mr. Rockey said, with grain off 27.8 percent for the
month and 36.1 percent for the quarter. For just the week ended October
3, the AAR reported the following figures for U.S. railroads: 367,323
carloads, up 3.1 percent from the corresponding week last year; 183,728
trailers and containers, down 2.0 percent from last year; and total
volume of an estimated 27.7 billion ton-miles, up 4.1 percent from the
comparable 1997 week.

The AAR also reported the following cumulative U.S. totals for the first
39 weeks of 1998: 13,653,019 carloads, up 2.1 percent from 1997;
6,573,388 trailers and containers, up 0.4 percent; and total volume of
an estimated 1,026.3 billion ton-miles, up 1.3 percent from last year.

On Canadian railroads, volume during the week ended October 3 totaled
55,861 carloads, down 1.0 percent from the comparable 1997 week; and
29,894 trailers and containers, up 7.1 percent from last year. The
cumulative volume for the first 39 weeks of 1998 was 2,017,163 carloads,
down 3.5 percent from 1997, and 1,011,760 trailers and containers, up
4.5 percent from last year.

The AAR also reported the following combined U.S.-Canadian cumulative
totals for 19 reporting U.S. and Canadian railroads: 15,670,182
carloads, up 1.4 percent from last year; and 7,585,148 trailers and
containers, up 0.9 percent from 1997.

AAR is the world's leading railroad policy, research and technology
organization focusing on increasing the safety and productivity of rail
carriers.



CRTS Update #06-65
Saturday, June 19th, 1999 at 12:30 EDT

2 Rail Lines Inch Toward Stable Service
Some Trains Still Run Late For CSX, Norfolk Southern
By Don Phillips

Norfolk Southern Corp. and CSX Corp. yesterday limped to the end of a
third week of congestion and service breakdowns growing out of the
complicated merger with Conrail, but there were signs the problems may
be stabilizing.

Some customers of both Norfolk Southern and CSX reported improved
service, while others reported continued deterioration, including the
railroads' single largest customer, United Parcel Service of America
Inc.

Customer reports come in varying shades of alarm or ease. UPS, which not
only is the railroads' largest customer but the most demanding, said
both railroads were running hot UPS trains three to 13 hours late,
threatening to shred UPS's customer guarantees.

"For us, that is just unacceptable," said UPS spokesman Norman Black,
who said the company has crammed as many of its brown trucks as possible
back onto the highway. He estimated that perhaps half the UPS trucks
that were on rail cars before the June 1 merger -- mostly on CSX -- are
back on the road.

Black said service is not in a meltdown. "We do view this as a temporary
problem. We are upset it happened. We did not expect it to happen this
way."

However, Ford Motor Co., one of Norfolk Southern's largest customers,
said that while service is still a problem and some plant overtime work
has been cut back for lack of supplies, there have been no plant
shutdowns. "We don't consider any of this important at this point," Ford
spokesman Ron Iori said.

A snapshot of system statistics, while inconclusive in the short run,
indicates that things are not getting worse. A key measure of
congestion, the number of cars on each railroad that have not been
delivered to customers, stabilized over the past few days. But some key
yards remain congested on both railroads, and freight train crews are
sometimes unable to complete trips before they reach the maximum 12
hours on duty under federal law.

In an effort to assure that exhausted crews work through the weekend to
whittle down a backlog of traffic, both railroads have called on their
unions for help.

Norfolk Southern, which traditionally has had a less friendly
relationship with national rail unions than CSX, has asked for help and
has offered a bonus of up to double pay for any union member who works
through the weekend to help clear the traffic backlog.

"We're seeing the beginnings of change over there [at Norfolk
Southern]," said Charles Little, president of the United Transportation
Union, who said the union is doing everything possible to help the
railroads.

Both railroads, which split the eastern railroad Conrail between them on
June 1, have made headway in fixing dumbfounding computer problems that
have sent thousands of freight cars astray. This included an odd quirk
on Norfolk Southern called the "ping-pong effect," in which a computer
declares a loaded car suddenly empty and orders the car returned to its
original terminal.

On CSX, computer systems that had seemed to be operating properly last
week suddenly spent a couple of days selectively misrouting hundreds of
cars.

Norfolk Southern still appears to be in worse shape than CSX, but
Richmond-based CSX also suffers congestion problems that have resulted
in deteriorated service.

Ronald Conway, CSX executive vice president for operations, said
customers on former Conrail lines are not getting the service they
received under Conrail. "I can't say when we will get back up to Conrail
service," he said. However, "we're going back in the right direction."

The railroads have invested in hurried construction projects to relieve
seriously congested yards. And they have shifted large volumes of
freight to alternate routes on smaller railroads, effectively
reactivating former main lines that were declared surplus.

"There's a lot of track still out there," said James W. McClellan,
Norfolk Southern senior vice president. McClellan said formerly excess
infrastructure in the East may be one of several important reasons that
it will be spared the fate of service meltdown that hit the West after
the Union Pacific's 1996 merger with Southern Pacific.

Alan W. Maples, president of the Everett Railroad Co. of Duncansville,
Pa., one of many short-line railroads that have suffered serious service
disruptions, said Norfolk Southern computer systems can at least now
tell him the location of almost all of his incoming cars. "I'm feeling
better today," Maples said. "I hope I'll feel much better next week."



CRTS Update #06-61
Friday, June 18th, 1999 at 23:35 EDT

Conrail still exists

Conrail still exists, as a terminal operator for owners Norfolk Southern
and CSX in three "shared assets areas" in Michigan, Pennsylvania, and
New Jersey, and sent out this summary of its role.

Conrail's heritage of providing safe and efficient rail service
continues today for many local rail freight customers in Detroit, New
Jersey, and Philadelphia. As of June 1, Conrail owners CSX
Transportation and Norfolk Southern absorbed most of Conrail's former
operations in 12 Northeastern and Midwestern states, so today Conrail's
role is to provide customers along its remaining lines with access to
CSX, NS and, through them, to the nation's rail network.

Although Conrail no longer handles most commercial matters for
customers, it plays a critical role in serving shippers and receivers as
agent for its owners. As agent, it's Conrail's job as local rail service
provider to make sure that customers' freight shipments are safely and
efficiently moved between their sidings and the long distance freight
trains operated by CSX and NS. In addition, CSX and NS operate trains
over Conrail tracks to reach major yards, terminals, and distribution
facilities located in Detroit, New Jersey, and Philadelphia.

In the Detroit area, Conrail operations over nearly 90 miles of railroad
are focused in the north-south corridor connecting Trenton, Detroit, and
Sterling Heights/Utica, Mich. Major yards served by Conrail include
Livernois, North, River Rouge, and Sterling yards. Geographic limits
include Trenton on the south, Carleton on the southwest, and CP Townline
in Dearborn on the west.

In northern New Jersey, Conrail operates nearly 200 miles of railroad
concentrated in Essex, Hudson, Middlesex, Monmouth, Ocean, and Union
counties. The hub of CR activities is Oak Island Yard in Newark, with
smaller yards in Bayonne, Greenville (Jersey City), Linden, Manville,
Metuchen, Newark, Old Bridge, Port Reading (Woodbridge), and Red Bank.
Conrail also operates new automobile distribution facilities in the area
on behalf of its owners, and provides local freight service along
Amtrak's Northeast Corridor between Newark and Trenton.

In the Philadelphia/southern New Jersey area, Conrail operates about 250
miles of railroad, providing local freight service on virtually all
lines south of Trenton, and provides connections with the short lines
serving the remainder of the region.

In Pennsylvania, Conrail lines serve many customers in Philadelphia, and
along or near the Delaware River in Chester and lower Bucks counties.
Conrail also provides local service for customers along Amtrak's
Northeast Corridor between Philadelphia and Trenton.

The hub of Conrail operations in the region is Pavonia Yard in Camden,
N.J., with local yards in Chester, Morrisville, and the Midvale, Port
Richmond, and South Philadelphia areas of Philadelphia. In New Jersey,
local yards are at Burlington City, Mount Holly, Paulsboro, and
Woodbury.

Conrail's company headquarters are located at 2 Commerce Square,
Philadelphia. In addition to the company's office of the president,
other functions located in the Center City headquarters include
community relations, employee and corporate communications, finance and
administration, human resources, labor relations, and law. Conrail's
Mount Laurel (N.J.) office houses Conrail's operations functions,
including engineering, mechanical, police, and transportation, including
a computer-assisted train dispatching facility. A customer service
office will be transferred to Mount Laurel from Pittsburgh later in
1999.



CRTS Update #06-60

Friday, June 18th, 1999 at 23:30 EDT

AAR reports on Conrail break up

The first substantive, systemwide data that tracks the breakup of
Conrail Inc. confirm shipper reports about delays and congestion since
CSX Corp. and Norfolk Southern Corp. took over on June 1, the Journal of
Commerce reported today.

Though information about systemwide operations remains sketchy,
statistical data and shipper reports point to weak carloadings, sluggish
train operations and bloated terminals.

Specific comparisons to past performance aren't available for some
operational indicators because the carriers chose not to disclose
historical information.

The subpar performance comes despite optimistic projections about smooth
operations and traffic increases that both companies delivered right up
until June 1.

Shippers, regulators and industry analysts are monitoring the
performance of NS and CSX because of the post-merger problems on Western
railroads over the past three years.

Union Pacific Railroad's problems were severe enough that the company
was required to provide detailed weekly reports to the Surface
Transportation Board so that regulators could gauge how much progress
had been made in restoring normal operations.
The total business volume of NS, CSX and the surviving remnant of
Conrail last week trailed 1998 levels for those three railroads by 8%.

Last week was the first week when meaningful comparisons could be drawn.
Traffic declined by 15% in the week ending June 5, but that comparison
was skewed because the Memorial Day holiday fell in different weeks
during 1999 and 1998.

The traffic numbers, compiled and released by the Association of
American Railroads, included a note saying "carload figures reported by
CSXT and NS are preliminary and will be revised upwards as the
integration is completed."

Early traffic numbers don't support post-Conrail expectations on revenue
and traffic growth by both railroads.

The latest reports show a substantial spike in the number of freight
cars on the NS system from week to week.

The freight car count is widely used in the rail industry to measure
whether a system is becoming clogged or more fluid.

NS last week had more than 240,000 freight cars on its system, 7.5% more
than the week before. By comparison, CSX's car count increased by 1%
from week to week to more than 245,000.

At the height of its service disaster, the extent of Union Pacific
Railroad's gridlock was reflected in a car count that was about 15%
higher than optimum levels.

CSX and NS train operations over the past two weeks can't be compared
with operations on the stand-alone Conrail system before June 1, because
Conrail never publicly disclosed its car count, train speeds or yard
performance.

NS and CSX removed pre-June 1 data about their operations, making
month-to-month comparisons impossible.

Both railroads claimed the Conrail acquisition triggered enough changes
to make comparisons impossible.

Train operations in northern New Jersey, the Philadelphia area and
Detroit are sluggish, with more than a third of departures from some
major terminals six or more hours behind schedule.

Only 25% of the trains in areas where NS and CSX have operations left on
time. There was no significant change in on-time service from week to
week.

Those regions, called shared-asset areas, appeared to be in some
trouble, as "terminal dwell time" -- the period needed to process
freight cars -- doubled.
In Detroit, it took three times as long to sort cars between trains.

Service performance at major intermodal terminals in New Jersey was not
released, but some customers have reported problems.

Terminal operations slowed from week to week at almost every other major
freight yard previously operated by Conrail.

In Buffalo, dwell time at CSX facilities once owned by Conrail increased
50%. Indianapolis dwell time rose 25%, on CSX, and Albany, N.Y., area
yards were running 15% slower.

Yards in Pittsburgh, Columbus, Ohio, and Elkhart, Ind., that once were
Conrail's and now are owned by NS were running slower.

Only Harrisburg, Pa., cited by some in anecdotal reports as a trouble
spot, processed cars faster last week than the week before.

The Oak Island yard in Newark, N.J., was as much as 40% above capacity
during some of last week.

Train speeds were slowing as well.

The average NS train ran 6% slower last week than the week before. All
types of traffic were affected. CSX speeds dropped 2% to 18.8 mph. The
only area of improvement was grain trains.
NS and CSX also file confidential reports at the Surface Transportation
Board with detailed on-time performance, interchange and terminal
efficiency.



CRTS Update #06-42
Monday, June 14th, 1999 at 18:50 EDT


Norfolk Southern, CSX Struggle
With Ex-Conrail's Freight Delays
By DANIEL MACHALABA

Trouble spots have broken out on the former Conrail Inc. rail system
recently divided between Norfolk Southern Corp. and CSX Corp.,
causing freight tie-ups and service failures for railroad customers.

Norfolk Southern acknowledged that computer foul-ups have led to
misrouted shipments and backups at major freight yards in the Northeast
and Midwest. Industry officials said that in some cases, Norfolk Southern
computers were misclassifying railroad cars as empty, when in fact they
were loaded. The result is that some cars were sent to the wrong place.

CSX also cited some computer problems and freight delays at facilities
in Cleveland, Indianapolis and Albany, N.Y.

Problems Worsen

The latest reports indicate that instead of getting better, problems that
were reported in the first week after the June 1 Conrail carve-up are
persisting, and may even be getting worse.

The railroads said they are taking remedial action and expect to have the
former Conrail routes running smoothly in two to three weeks. But some
people said that the railroads are in a critical stage when they must
demonstrate they are in control or in danger of being overwhelmed by the
problems. Already, the railroads have parked some trains on sidings and
have run short of crews because of congestion. If left unchecked, such
problems can have a ripple effect.

"It's either going to peak and boil over, or they will fix the fires," said
Gary Landrio, a vice president of Stone Consulting & Design Inc., Warren, Pa.

Ford Shutdowns

Last week, Ford Motor Co. shut down some production briefly at its
plants in Buffalo, N.Y., and Oakville, Ontario, because rail shipments of
critical materials arrived late. Ford spokesman Ron Iori said the company
is closely monitoring rail shipments to avoid outages at Ford plants in
Ohio and Michigan.

J.B. Hunt Transport Services Inc., a Lowell, Ark., trucking company that
uses rail for many of its long-distance deliveries, said some Norfolk
Southern trains between Chicago and northern New Jersey have been as
much as eight hours late. As a result, J.B. Hunt has had to reschedule
delivery appointments with its customers. J.B. Hunt and United Parcel
Service of America Inc., another big rail user, said they will wait
until the middle of the week to decide if rail service is improving or
they need to divert shipments to the highways.

Even Amtrak, the national passenger railroad, reported that some of its
trains that operate over former Conrail tracks are running late due to
freight congestion.

At least so far, the rail problems in the East aren't anywhere near as severe
as those in the West in 1997 and 1998 after Union Pacific Corp. took over
Southern Pacific Rail Corp. Those problems led to rail gridlock, massive
freight backups and higher costs for rail users. The Union Pacific problems
also made rail customers nervous about the planned $10 billion takeover
and carve-up of Conrail.

Norfolk Southern, Norfolk, Va., said computer foul-ups have caused
some of its freight yards to fall behind. The company said it has identified
the cause of the problem and is implementing a solution. Meanwhile, it is
making sure that some processes continue to function on a manual basis.

"We've experienced some difficulties, and we are working arduously to
resolve those issues," said Steve Tobias, Norfolk Southern's chief
operating officer. "We are extremely regretful of any inconvenience or
disappointment we have caused in our customer-service package."

Michael Ward, an executive vice president at CSX's rail unit, said
Cleveland has become a bottleneck for its new operation. Richmond,
Va.-based CSX is shifting some fueling operations to other locations,
rescheduling trains to arrive at different times and accelerating construction
of additional tracks. He said a "minor mismatch between [computer] files at
CSX and Conrail" caused a backup of 800 freight cars at the company's
yard near Albany, but a change in procedure is eliminating the backup.

"We aren't ready to declare victory," Mr. Ward said. "Things won't be
running as well as we would like until the end of this month."



CRTS Update #06-37
Saturday, June 12th, 1999 at 14:20 EDT


CONRAIL ALPHA SYSTEM CONVERSION LIST: PART ONE

 
ALBU            NS      41A     Allentown - Harrisburg - Buffalo 
ALCA            NS      48G     Allentown - Camden 
ALCS            NS      43A     Allentown - Philadelphia/Park Jct 
ALED            NS      45A     Allentown - Edge Moor/Bell DE
ALHB            NS      49A     Allentown - Enola 
ALLI            NS      457     Allentown - Hagerstown - Linwood NC
ALPI-F          NS      11A     Allentown - Conway 
ARIN            CSX     Q234    Salem/UP IL - Indianapolis/Avon 
ASIN            CSX     Q282    E.St.Louis - Indianapolis/Avon 
ATPI            NS      41E     Altoona - Conway 
BAPI            NS      13A     Baltimore/Sparrow's Point - Conway 
BBBU            CSX     Q386    Willard - Buffalo/Frontier 
BHEL            NS      40G     Burns Harbor - Elkhart 
BHIN            NS      48M     Burns Harbor - Anderson IN
BIBV            NS      11T     Binghamton - Vermillion - Bellevue 
BNST            NS      18Q     E.St.Louis - Warren/Sterling 
BOSE            CSX     Q421    Boston/Beacon Park - Selkirk 
BREL            NS      44G     Chicago/BRC - Elkhart 
BRPI            NS      16E     Chicago/BRC - Conway 
BUAL            NS      40A     Buffalo - Harrisburg - Allentown 
BUCI            CSX     Q365    Buffalo/Frontier - Cincinnati/Queensgate 
BUCU            CSX     Q641    Buffalo/Frontier - Cumberland 
BUCW            CSX     Q357    Buffalo/Frontier - Chicago 
BUEL            NS      13M     Buffalo - Ashtabula - Elkhart 
BUHE            NS      15J     Buffalo - Ashtabula - Hennepin 
BUIN            CSX     Q363    Buffalo/Frontier - Indianapolis/Avon 
BUOI            NS      46G     Buffalo - Oak Island/Newark 
BURX            CSX     Q393    Buffalo/Frontier - Willard West 
BUSY            CSX     Q624    Buffalo/Frontier - Dewitt 
BUUP            CSX     Q351    Buffalo/Frontier - Chicago/UP 
BVBI            NS      12T     Bellevue - Vermillion - Binghamton 
BVMF            NS      13K     Bellevue - Mansfield 
BVMR            NS      49N     Bellevue - Moraine 
BVPI            NS      12K     Bellevue - Conway
CAAL            NS      49G     Camden - Allentown 
CAPI            NS      19E     Camden - Conway 
CASE            CSX     Q418    Camden - Selkirk 
CCAL            NS      15A     South Amboy/Brown's - Allentown 
CHPI            NS      180     Chattanooga - Cincinnati - Conway 
CIBU            CSX     Q366    Cincinnati/Queensgate - Buffalo/Frontier 
CIIN            CSX     Q361    Cincinnati/Queensgate - Indianapolis/Avon
CNSE            CSX     Q620    Massena - Selkirk 
COCS            NS      43N     Columbus/Buckeye - Cincinnati/CSX 
CODI            NS      44N     Columbus/Buckeye - Dickinson WV
COEL            NS      11M     Columbus/Buckeye - Elkhart 
COIH            CSX     K521    Columbus/CSX - Indiana Harbor/IHB
COIN            CSX     Q311    Columbus/CSX - Indianapolis/Avon 
COLO            NS      405     Columbus/Buckeye - Lordstown 
COLT            NS      18J     Columbus/Buckeye - Lordstown 
COMR-A          NS      47N     Columbus/Buckeye - Moraine 
COMR-B          NS      49N     Columbus/Buckeye - Moraine 
CONS            NS      117     Columbus/Buckeye - Cincinnati 
COPI            NS      12V     Columbus/Buckeye - Conway 
CORO            NS      148     Columbus/Buckeye - Watkins OH - Roanoke
COST            NS      19M     Columbus/Buckeye - Warren/Sterling 
COTO            CSX     Q636    Columbus/CSX - Toledo/Stanley
CSAL            NS      42A     Philadelphia/Park Jct - Allentown 
CSCO            NS      40N     Cincinnati/CSX - Columbus/Buckeye 
CTSE            CSX     K276    Baltimore/Bay View - Selkirk 
CUBU            CSX     Q640    Cumberland - Lordstown - Buffalo/Frontier
CWBU            CSX     Q356    Chicago - Buffalo/Frontier 
CWIN            CSX     Q643    Chicago - Lafayette - Indianapolis/Avon
CWTO            CSX     Q509    Chicago - Willard - Toledo/Stanley 
DECI            CSX     Q503    Detroit/CSX - Lima - Cincinnati/Queensgate
DEIN            CSX     Q594    Decatur - Terre Haute - Indianapolis/Avon
DICO            NS      45N     Dickinson WV - Columbus/Buckeye 
DREL            NS      43J     Detroit/River Rouge - Elkhart 
ELBH            NS      41G     Elkhart - Burns Harbor 
ELBN            NS      43G     Elkhart - Cicero/BNSF
ELBR            NS      45G     Elkhart - Chicago/BRC 
ELBU            NS      12M     Elkhart - Ashtabula - Buffalo  
ELCH            NS      143     Elkhart - Cincinnati - Chattanooga  
ELCO            NS      10M     Elkhart - Columbus/Buckeye 
ELDL            NS      42J     Elkhart - Detroit/Livernois 
ELGR            NS      46E     Elkhart - Grand Rapids 
ELIH            NS      45J     Elkhart - Boone-IHB 
ELJA            NS      48J     Elkhart - Jackson MI
ELKA            NS      47J     Elkhart - Kankakee 
ELNP            NS      43E     Elkhart - Ogden Ave - North Platte 
ELPI-A          NS      14N     Elkhart - Conway 
ELPI-B          NS      16N     Elkhart - Conway 
ELPR            NS      45E     Elkhart - Ogden Ave - Proviso 
ELSF-A          NS      41K     Elkhart - Streator 
ELSO            NS      47M     Elkhart - Chicago/BRC 
ELST            NS      48E     Elkhart - Warren/Sterling 
ELTO            NS      46M     Elkhart - Toledo 
ENAL            NS      48A     Enola - Allentown 
ESPI            NS      13G     Harrington DE - Conway 
FRSE            CSX     Q423    Framingham - Selkirk 
HEBU            NS      14J     Hennepin - Ashtabula - Buffalo
HMOI            CSX     Q412    Hamlet - Baltimore/Bay View - Oak Island
GREL            NS      47E     Grand Rapids - Elkhart 
GRTO            CSX     Q334    Grand Rapids - Toledo/Stanley
ICIN            CSX     Q639    Effingham - Indianapolis/Avon 
ICPI            NS      16K     Tolono - Vermillion  - Conway 
IHCO            CSX     K520    Toledo/Stanley - Columbus/CSX 
IHDL            NS      46A     Indiana Harbor-IHB - Detroit-Livernois 
IHEL            NS      44J     Boone-IHB - Elkhart 
IHSE            CSX     Q380    Indiana Harbor-IHB - Selkirk 
INAS            CSX     Q281    Indianapolis-Avon - E.St.Louis 
INBU            CSX     Q362    Indianapolis-Avon - Buffalo-Frontier 
INCI            CSX     Q360    Indianapolis/Avon - Cincinnati/Queensgate
INCO            CSX     Q310    Indianapolis/Avon - Columbus/CSX 
INCW            CSX     Q642    Indianapolis/Avon - Lafayette - Chicago
INDE            CSX     Q593    Indianapolis/Avon - Terre Haute - Decatur
INFW            CSX     Q379    Indianapolis/Avon - Salem - Fort Worth 
INNA            CSX     Q651    Indianapolis/Avon - Evansville - Nashville 
INSE            CSX     Q364    Indianapolis/Avon - Selkirk   
INTO            CSX     Q309    Indianapolis/Avon - Toledo/Stanley 
INTR            CSX     Q373    Indianapolis/Avon - E.St.Louis/TRRA 
KAEL            NS      46J     Kankakee - Elkhart 
LAEL            NS      49J     Lansing - Elkhart 
LAPI            NS      11G     Lancaster PA - Conway 
LASE            CSX     Q425    Barber Station/GRS - Selkirk 
LIAL            NS      456     Linwood NC - Hagerstown - Allentown
LIOI            NS      154     Linwood NC to Oak Island/Newark 
LMPI            NS      15G     Linden-Metuchen - Conway 
LMSE            CSX     Q265    Linden-Metuchen - Selkirk 
LOBA            CSX     Q368    Louisville - New Castle - Baltimore
LOCO            NS      406     Lordstown - Columbus/Buckeye
LTCO            NS      19J     Lordstown - Columbus/Buckeye 
MEPI            NS      45K     Meadville - Conway 
MOPI            NS      17G     Morrisville - Conway 
MRBV            NS      48N     Moraine - Bellevue 
MRCO-A          NS      46N     Moraine - Columbus/Buckeye 
MRCO-B          NS      48N     Moraine - Columbus/Buckeye 
MYTO            NS      49K     Chrysler/Twinsburg - Toledo/East Yard 
NAIN            CSX     Q514    Nashville - Indianapolis/Avon  
NESE            CSX     Q427    Barber Station/GRS - Selkirk 
NFSE            CSX     Q628    Niagara Falls - Selkirk 
NLIN            CSX     Q376    North Little Rock - Indianapolis/Avon  
NLPI            NS      10E     North Little Rock - Butler - Conway  
NLSE            CSX     Q374    North Little Rock - Salem - Selkirk  
NPBV            NS      14A     North Platte - Ogden Ave - Bellevue 
NPPI            NS      18A     North Platte -Ogden Ave - Conway 
NPSE            CSX     Q390    North Platte - Willard - Selkirk 
NSCO            NS      116     Cincinnati - Columbus/Buckeye
OIBU            NS      47G     Oak Island/Newark - Buffalo 
OIEL            NS      11N     Oak Island/Newark - Elkhart 
OILI            NS      155     Oak Island/Newark -Hagerstown - Linwood NC
OIRM            CSX     Q413    Oak Island/Newark - Richmond/Acca 
OJTA            CSX     K651    Greenville NJ - Bay View - Bradenton FL
OPSE            CSX     Q430    Oak Point - Selkirk 
PGLO            CSX     Q375    Philadelphia/Greenwaich - Louisville 
PIAL            NS      10A     Conway - Allentown 
PIAT            NS      40E     Conway - Altoona 
PIBA            NS      12A     Conway - Baltimore/River 
PIBE            NS      10N     Conway - Bethlehem 
PIBR            NS      17E     Conway - Chicago/BRC 
PIBV            NS      13K     Conway - Bellevue
PICA            NS      18E     Conway - Camden 
PICH            NS      179     Conway - Chattanooga 
PICO            NS      13V     Conway - Columbus/Buckeye 
PIDE            NS      35N     Conway - Decatur
PIEL-A          NS      15N     Conway - Elkhart 
PIEL-B          NS      17N     Conway - Elkhart 
PIES            NS      12G     Conway - Harrington DE
PIEW            NS      11E     Conway - Butler - UP Texas
PIIC            NS      17K     Conway - Vermillion - Centralia IL
PILA            NS      10G     Conway - Lancaster PA
PIME            NS      44K     Conway - Meadville 
PIML            NS      14G     Conway - Metuchen/Linden NJ
PIMO            NS      16G     Conway - Morrisville 
PIOI-B          NS      18G     Conway - Oak Island/Newark
PIPR            NS      19A     Conway - Ogden Ave - Proviso-UP 
PIRO            NS      127     Conway - Hagerstown - Roanoke 
PWSE            CSX     Q437    Worcester/P&W - Selkirk 
ROCO            NS      147     Roanoke - Watkins OH - Columbus/Buckeye
ROPI            NS      126     Roanoke - Hagerstown - Conway
RXBU            CSX     Q392    Willard - Buffalo/Frontier 
RYSE            CSX     Q410    Rocky Mount - Selkirk 
SABU            CSX     Q432    South Amboy/Brown's - Buffalo/Frontier 
SAWI            CSX     Q396    Saginaw - Stanley - Walbridge - Wilmington
SEBB            CSX     Q387    Selkirk - Willard West 
SEBO            CSX     Q420    Selkirk - Boston/Beacon Park 
SEBR            CSX     Q389    Selkirk - Chicago/BRC
SEBU            CSX     Q439    Selkirk - Buffalo/Frontier 
SECA            CSX     Q417    Selkirk - Camden 
SECN            CSX     Q621    Selkirk - Massena 
SECT            CSX     Q277    Selkirk - Baltimore/Bay Viw 
SEFR            CSX     Q436    Selkirk - Framingham 
SEIN            CSX     Q367    Selkirk - Indianapolis/Avon 
SELA            CSX     Q428    Selkirk - Barber Station/GRS
SELI            CSX     L431    Selkirk - Oak Point 
SENE            CSX     Q426    Selkirk - Barber Station/GRS
SENF            CSX     Q629    Selkirk - Niagara Falls 
SEPW            CSX     Q422    Selkirk - Worcester/P&W 
SESA            CSX     Q433    Selkirk - South Amboy/Brown's 
SESP            CSX     Q429    Selkirk - West Springfield 
SETA            CSX     Q409    Selkirk - Tampa 
SETO            CSX     Q391    Selkirk - Willard - Toledo/Stanley 
SFEL            NS      40K     Streator - Elkhart 
SFPI            NS      10R     Streator - Conway 
SLIN            CSX     Q370    E.St.Louis/TRRA - Indianapolis/Avon 
SPSE            CSX     Q424    West Springfield - Selkirk 
STBN            NS      17J     Warren/Sterling - Madison/TRRA 
STCO            NS      10K     Warren/Sterling - Columbus/Buckeye 
STEL            NS      49E     Warren/Sterling - Elkhart 
STIT            NS      17M     Warren/Sterling - Indianapolis/IT 
STPI            NS      12N     Warren/Sterling - Conway 
STTO            CSX     Q305    Warren/Sterling - Toledo/Stanley 
SYBU            CSX     Q625    Dewitt - Buffalo/Frontier
SYMS            CSX     Q622    Dewitt - Massena 
TAOJ            CSX     K650    Bradenton FL - Bay View - Greenville NJ
TOCI            CSX     Q507    Toledo/Stanley - Lima - Cincinnati/Queensgate
TOCO            CSX     Q637    Toledo/Stanley - Columbus/CSX 
TOCW            CSX     Q508    Toledo/Stanley - Willard - Chicago 
TOEL            NS      43M     Toledo - Elkhart 
TOGR            CSX     Q335    Toledo/Stanley - Grand Rapids 
TOIN            CSX     Q308    Toledo/Stanley - Indianapolis/Avon
TOMT            CSX     Q263    Toledo/Stanley - Metuchen 
TOMY            NS      48K     Toledo - Chrysler/Twinsburg 
TOPI            NS      16J     Toledo - Conway 
TOWS            CSX     Q304    Toledo/Stanley - Warren/Sterling




CRTS Update #06-38
Saturday, June 12th, 1999 at 14:30 EDT


CONRAIL ALPHA SYSTEM CONVERSION LIST: PART TWO

ML-221          CSX     Q221    Lordstown - Indianapolis/Avon
ML-231          CSX     Q231    Toledo/Walbridge - Evansville 
ML-243          CSX     Q243    Marysville - Cincinnati/Queensgate 
ML-268          CSX     Q268    Cleveland/Collinwood - Dockside/Port Newark
ML-276          CSX     Q276    Indianapolis/Avon - Willard - Twin Oaks PA
ML-291          CSX     Q291    Buffalo/Seneca - Gibson IN
ML-401          CSX     Q271    Doremus Ave/Newark - Marysville 
ML-403          NS      11J     Metuchen - Bellevue 
ML-407          CSX     Q273    Metuchen - Buffalo/Seneca 
ML-411          NS      47K     Port Wilmington DE - Buffalo 
ML-417          NS      13J     Wimington DE - Chicago
ML-420          NS      46K     Buffalo - Port Wilmington DE
ML-421          NS      11K     Oak Harbor OH - Gibson IN
ML-430          CSX     Q290    Warren/Sterling - Dockside/Port Newark 
ML-433          CSX     Q277    Framingham - Warren/Sterling 
ML-438          CSX     Q294    West Springfield - Ayer/GRS
ML-440          NS      18N     Warren/Sterling - Doremus Ave/Newark 
ML-441          NS      41M     Detroit/North Yard - Gibson IN
ML-451          CSX     Q246    Marysville - Chicago 
ML-453          CSX     Q288    Garrett - Marysville 
ML-460          CSX     Q270    Evansville - Cleveland/Collinwood 
ML-470          CSX     Q284    Toledo/Stanley - Cleveland/Collinwood
ML-480          NS      10J     Toledo - Harrisburg - Croxton 
ML-482          CSX     Q264    Cleveland/Collinwood - Framingham 
ML-488          CSX     Q254    Cleveland/Collinwood - Selkirk 
ML-490          NS      12J     Cicero/BNSF - Oak Harbor OH
ML-493          NS      27E     Elkhart - South Chicago - Wentzville MO 

TVBN            CSX     Q169    North Bergen NJ to Bedford Park IL
TVLA            NS      21M     Croxton NJ to Chicago 47th St. IL
TVLT            NS      24K     Chicago 47th St IL to Croxton NJ 
TV-1            NS      21Q     Morrisville-TV PA to BNSF-TV Corwith IL
TV-10           NS      20K     Chicago 47th St IL to Croxton NJ 
TV-10B          CSX     Q150    Toledo-Walbridge OH to Boston-Beacon Park MA
TV-100          CSX     Q110    Garrett IN to North Bergen NJ
TV-102          CSX     L110    Willard OH to North Bergen NJ
TV-11           NS      21R     E'port E-Rail NJ to Chicago Ashland Ave IL
TV-12           NS      20R     Chicago Ashland Ave IL to E'port E-Rail NJ
TV-13           CSX     Q113    Boston-Beacon Park MA to Chicago 59th St IL
TV-134          CSX     Q134    Cleveland-Collinwood OH to Ashtabula OH 
TV-135          CSX     Q135    CP-River PA to Baltimore-Chicago-Englewood TV IL
TV-14           CSX     Q114    Willard OH to Boston-Beacon Park MA
TV-141          CSX     Q141    Detroit-TV MI to Toledo-Walbridge OH
TV-151          CSX     Q151    Cleveland-Collinwood OH to Detroit-TV MI
TV-172          CSX     Q172    Little Ferry NJ to Selkirk NY
TV-173          CSX     Q173    Little Ferry NJ to Jacksonville FL
TV-174          CSX     Q174    Baltimore-Bay View MD to Selkirk NY
TV-175          CSX     Q175    Philadelphia-Greenwich PA to Orlando FL
TV-176          CSX     Q176    Acca-Richmond VA to Philadelphia-Greenwich PA
TV-18           CSX     Q162    Willard OH to Kearny NJ
TV-2H           NS      22W     Chicago 47th St IL to Harrisburg PA
TV-2HK          NS      20G     Chicago 47th St IL to Harrisburg PA
TV-2M           NS      20Q     Chicago-Ashland Ave IL to Morrisville-TV PA
TV-20           NS      20V     Harrisburg PA to Philadelphia-Ameriport PA
TV-20N          NS      20N     Chicago-Ashland Ave IL to Detroit-TV MI
TV-200          NS      20Z     Chicago-UP Proviso IL to API-Kearny NJ via PRR
TV-202          NS      22Z     Chicago-Ashland Ave IL to Croxton NJ via PRR
TV-203          NS      23Z     API-Kearny NJ to Global 1 UP IL via EL
TV-204          NS      24Z     Chicago-Ashland Ave IL to Croxton NJ via PRR
TV-207          NS      23M     Port Newark NJ to UP Global 2 IL via PRR
TV-21           NS      21V     Philadelphia-Ameriport PA to Enola PA
TV-211          NS      211     Croxton NJ to Atlanta GA   
TV-212          NS      212     Hagerstown MD to Croxton NJ
TV-213          NS      213     Croxton NJ to Dallas TX via Meridian MS (KCS)
TV-214          NS      214     Atlanta GA to Croxton NJ
TV-22           NS      24M     Chicago 47th St IL to Baltimore-TV MD
TV-220          NS      22N     Chicago-Ashland Ave IL to Columbus OH
TV-221          NS      23N     Columbus OH to Chicago-Ashland Ave IL
TV-24           CSX     Q112    Willard OH to Boston-Beacon Park MA
TV-24P          CSX     Q184    Selkirk NY to Dockside-Port Newark NJ
TV-261          CSX     Q165    Kearny-TV NJ to Chicago IL
TV-265          NS      25K     Croxton NJ to Cicero-BNSF IL via EL
TV-268          NS      268     Chicago-Landers IL to Albany NY 
TV-269          NS      269     Albany NY to Chicago-Landers IL
TV-3            NS      21T     E'port NJ to Kansas City MO via PRR
TV-300          CSX     Q152    Chicago IL to Kearny-TV NJ
TV-301          CSX     L157    Kearny-TV NJ to Chicago-UP Global 1/2 IL
TV-302          CSX     Q156    Willard OH to Kearny NJ
TV-304          CSX     Q164    Willard OH to Kearny NJ
TV-307          CSX     Q159    Dockside-Port Newark NJ to Syracuse NY
TV-320          CSX     L146    Garrett IN to Columbus-TV OH
TV-321          CSX     Q147    Columbus-TV OH to Chicago-UP Global 1 IL
TV-5            CSX     L115    Boston-Beacon Park MA to E.St.Louis-Rose Lake IL
TV-6            CSX     Q116    E.St.Louis-Rose Lake IL to Boston-Beacon Park MA
TV-61           NS      24W     Baltimore-TV MD to Chicago-47th St IL
TV-61H          NS      25V     Allentown-TV PA to Harrisburg PA
TV-62A          NS      24V     Harrisburg PA to Allentown-TV PA
TV-7            CSX     Q117    Boston-Beacon Park MA to Chicago-Englewood TV IL
TV-77           CSX     Q161    Kearny-TV NJ to Chicago-Bedford Park IL
TV-79           CSX     Q167    Worcester MA to Cincinnati-Queensgate OH
TV-8            CSX     Q160    Willard OH to North Bergen NJ
TV-8W           CSX     Q166    Syracuse NY to Boston-Beacon Park MA
TV-80W          CSX     L158    Selkirk NY to Worcester MA
TV-9            CSX     Q119    Boston-Beacon Park MA to Chicago-Bedford Park IL
TV-99           CSX     Q109    North Bergen NJ to BNSF-Willow Springs IL

MAIL-3          NS      21J     Croxton NJ to Harrisburg PA
MAIL-44         NS      20A     Butler IN to E'port-E-Rail NJ
MAIL-46         CSX     Q108    E.St.Louis-Rose Lake IL to Little Ferry NJ
MAIL-5          CSX     Q111    Little Ferry NJ to E.St.Louis-Rose Lake IL
MAIL-8          NS      22K     Chicago-47th St IL to Croxton NJ
MAIL-8M         NS      20E     Chicago-47th St IL to Morrisville-TV PA
MAIL-8S         CSX     Q168    Selkirk NY to Boston-Beacon Park MA
MAIL-9          NS      21E     Morrisville-TV PA to Willow Springs IL
MAIL-9H         NS      21W     Harrisburg PA to Chicago-47th St IL




CRTS Update #04-20
Monday, April 5th, 1999 at 13:20 EDT


Conrail Shared Assets Areas' locomotives to remain blue

Although Conrail locomotives are being renumbered to fit into the
rosters of CSX and Norfolk Southern and will wear new reporting
marks, not all of the "Big Blue" fleet will see CSX's gray, blue, and
yellow paint or NS's black-and-white. The 138 locomotives that
CSX and NS have assigned to the Shared Asset Areas--where
Conrail will survive after the June 1 "Day One" split to provide
local and yard service for its new owners--will remain in Conrail
blue, complete with the Conrail logo, says CR spokesman Bob
Libkind.

The "new Conrail" roster is heavy on switchers and
low-horsepower units and light on high-horsepower road units.
The big exceptions are the 11 ex-Erie Lackawanna SD45-2's--the
oldest road power left on Conrail--that will roam the North Jersey
and Philadelphia-South Jersey shared asset territories. The two
Jersey areas are assigned 111 units: 12 GP15-1's, 46 B23-7's, 2
GP40-2's, the 11 SD45-2's, 11 GP38's, 11 GP38-2's, 11
SW1001's, 4 SW1500's, and 3 SD40-2's. The Detroit shared
asset area is assigned 18 GP15-1's, 3 GP38-2's, 2 SD40-2's, and
4 SW1500's.

On March 12, the first of 1108 Conrail units to be renumbered
into the NS fleet emerged from the shop at Enola, Pa.: SD50
6715, which came out as PRR 5409, a number last worn by an
Alco RS3 and, before that, a K4s 4-6-2.

Technically, NS and CSX won't own any Conrail locomotives.
They'll be owned by the shared assets Conrail and the two new
subsidiaries, Pennsylvania Lines LLC (PRR), which goes to NS,
and New York Central Lines LLC (NYC), which goes to CSX.
The names are both a nod to history and a rough parallel of how
Conrail territory is being carved up.

Locomotives going to NS are being prepared just like CR 6715,
with new number boards and a vinyl decal affixed to the cabsides,
bearing the new number and PRR initials. Although Conrail freight
cars destined for CSX wear NYC reporting marks, locomotives
will sport CSXT initials, CSX says. As of March, CSX expected
to begin renumbering its 802 Conrail units after June 1 when they
come in for their 90-day maintenance, and did not expect to fully
repaint any CR locomotives until they're in for heavy work. NS
expects to have all its Conrail units repainted within 5 years.

Bill Stephens, Trains Newswire



CRTS Update #04-11
Saturday, April 3rd, 1999 at 00:20 EST


WASHINGTON- CSX Corp. and Norfolk Southern Corp. are bracing for
minor service snags as they prepare to split Conrail routes between them
two months from today.

Seeking to play down the significance of any problems, officials from the
two companies said Wednesday that the transition will not be error-free and
that disruptions are inevitable.

They said they have maximized planning and capacity so that any problems
do not lead to a service meltdown similar to one that faced Union Pacific
Railroad following its 1996 merger with Southern Pacific Rail Corp.

``We expect things will go bump in the night, so we have contingencies ...
and more assets and people than you really need,'' said John Snow, CSX
chairman and chief executive.

Slowdowns will occur in the first several hours of the transition as
computers are shut down and reprogrammed, forcing a temporary shift to
manual operations, Snow said.

The $10.3 billion takeover of Philadelphia-based Conrail by CSX and
Norfolk Southern, now scheduled for June 1, has come under scrutiny
because of the Union Pacific problems.

Snow likened the adverse effects from the computer shutdown and other,
unforeseen problems to those of ``a freak ice storm that slows the
railroads for a little while.''

The Union Pacific gridlock in the West and Midwest lasted several months
and caused major delivery delays. It spawned several lawsuits by shippers
and a drive in Congress to give federal regulators more oversight
over the rail industry.

Norfolk Southern spokeswoman Susan Terpay said her company had
contingency and backup plans to address problems as they occurred.

Teams from Conrail, CSX and Norfolk Southern will spend the next several
weeks testing their computer systems and running through scenarios that
could cause problems.

The deal, approved by the federal Surface Transportation Board last
summer, is the most complex and most extensive rail transaction in U.S.
history, covering nearly 45,000 miles of tracks among the three
railroads.



CRTS Update #03-26
Tuesday, March 23rd, 1999 at 20:00 EST


Trains crash in Momence
Union Pacific, Conrail freights collide, derail
By Janet Cremer

MOMENCE - Just 11 miles east of the site of the fatal Amtrak collision
last week in Bourbonnais, an eastbound Conrail freight train collided
with a southbound Union Pacific early this morning in Momence, derailing
both, and spilling diesel fuel into a nearby creek.

Three people, including both engineers, were taken to Riverside Medical
Center for treatment of minor injuries. A third person, a crewman from
Union Pacific, also suffered minor injuries, said railroad officials.

Conrail Engineer Tim Norred of the Kankakee area, and conductor Dan
Pickering of Bourbonnais were at Riverside Medical Center this morning
under observation. Hospital spokesmen said both would likely be released
this afternoon.

A third person, William Smith, whose address was not available at
presstime, was treated and released from Riverside this morning.

Those injured reportedly had only cuts and bruises, according to
hospital spokesman Mike Silgen.

The accident happened at 7 a.m. at Railroad Avenue and 6th Street on the
city's northeast side. Both trains were moving at the time and hit at
about a 45-degree angle at the diamond crossing, said Ron Hildebrand, a
Conrail spokesman.

''Our engine ran into the side of their train,'' Hildebrand said. ''Who
had the right-of-way is not known.''

The impact resulted in the derailment of two Conrail engines and 13
Union Pacific cars and two engines.

After the collision, the lead Conrail locomotive was on its side and a
second that followed was leaning, followed by four derailed cars,
Hildebrand said. The Conrail engines were pulling 60 cars total, he
said.

James Coulter of Momence, who lives near the crash, said that he helped
pull a Conrail engineer from the wreckage. He said the Conrail engine
was on its side when he stepped on the top and pulled open the door,
pulling the engineer to safety.

''He just seemed dazed and confused,'' he said. Coulter said he walked
the man to a safe by the time paramedics arrived.

A small fire was also reported, said Momence retired Fire Chief Jim
LaMotte, who was handling media questions. LaMotte said the fire was in
one of the Union Pacific freight cars which contained motor and
transmission parts. The fire, he said, was quickly extinguished by
Momence firefighters.

Early reports were that a couple of the Conrail cars were carrying
hazardous materials which were to be hauled away from the site by
Conrail. Nothing leaked, however, police at the scene said.

A foam truck from Mobil Chemical in Joliet was also called to the scene.

The impact of a derailed car gouged a hole in a mammoth grain bin at the
Orr Elevator along the Union Pacific tracks. The bin was said to be
filled with corn.

Union Pacific workers on the scene said that there appeared to be no
signal malfunction.

Conrail Union spokesman for the conductors Dale Burkhalter said that
during that time of day the signal is hard to see since the sun is
rising directly over the tracks. He added that Norred is a two-year
engineer.

The Conrail train was en route from Kankakee to Elkhart, Ind.

Burkhalter also said that crews are ''overworked and understaffed'' from
Kankakee and that may have contributed to the mishap.

Untold gallons of diesel fuel spilled from the Conrail engine into a
creek that runs parallel with the Union Pacific tracks, just two blocks
north of the Kankakee River.

''Our main concern right now is the diesel fuel,'' said Momence Police
Chief Steve Cromwell.

Triangle Construction and Azzerelli were called out to deliver
dumptrucks of sand to help dam up the ditch. In the meantime a temporary
boom was placed across the 10- foot wide ditch to hold back the fuel.
Area farmers also came out in droves, delivering truck loads of straw,
also to hold back the fuel.

Hildebrand said track speed at that point was 45 mph, though he didn't
know how fast either train was traveling.

''There's quite a mess out there, with debris all around,'' said
LaMotte. ''It's not a real hazardous situation.''

Gene Smith and Erika Schneider, who both live near the scene, said that
the derailment made a loud noise and drew them both outside.

''My dog just went crazy when she heard it,'' said Ms. Schneider.

The National Transportation Safety Board headquartered in Washington was
called to the scene.

Journal writer Rochelle Simpson also contributed to this article.



CRTS Update #02-52
Saturday, February 27th, 1999 at 20:35 EST


Conrail's Port Richmond Grain Elevator to be Razed Sunday, Feb. 28;
Interstate 95 to be Closed in Area Beginning at 7:50 a.m.

PHILADELPHIA, Feb. 25 -- Demolition experts will use controlled
explosives Sunday to remove the upper portion of the former grain elevator
at Conrail's Port Richmond rail freight facilities. The detonation will
require the closing of I-95 between Girard Avenue and Bridge Street, as
well as local streets. The detonation is scheduled for about 8 a.m.

(Note to Editors: An advisory with information about the news media
viewing area for Sunday follows this news release. The Philadelphia Police
Department has issued a separate news release detailing I-95 and local
street closing information.)

The main public viewing location will be at the corner of Allegheny and
Delaware avenues. After 7:30 a.m., access to this area can only be
gained by going south on Delaware Avenue from Castor Avenue or Venango
Street.

Only the upper 135 feet of the 245-foot tall structure will be removed
Sunday morning. The remainder of the heavily reinforced concrete structure
will be demolished using conventional methods. Winzinger, Inc., of
Philadelphia and Hainesport, N.J., is Conrail's contractor for the
demolition project.

Most of Conrail's Port Richmond property remains in active use to serve
the freight transportation needs of shippers along this section of the
Philadelphia waterfront. The 200-acre Port Richmond site is used by
shippers of various bulk commodities, including molasses, caustic soda,
scrap metal, construction and paving materials, and petrochemicals.
Conrail's tracks in Port Richmond must be used to access other nearby rail
freight users, including the Tioga Marine Terminal. In addition, Conrail
operates a repair shop on the property where track maintenance equipment
and company motor vehicles are maintained.

The former Farmer's Exchange grain terminal included both storage silos
and the workhouse/elevator structure, where grain was transferred to
conveyors leading to the terminal's piers for loading on vessels for
export. Winzinger began demolishing the 110 concrete silos last year
with conventional wrecking equipment. Each of the concrete silos was
approximately 17-feet in diameter and 115-feet high.

The Reading Railroad Company, one of Conrail's six predecessor railroads,
built the grain storage and transfer facility in 1927 to handle grain
exports. The last grain exports were handled in the mid-1970s. The
facility briefly served as an export terminal for anthracite fines to
Korea until the mid-1980s.



CRTS Update #02-42
Monday, February 22nd, 1999 at 20:25 EST


Officials see boom after rail breakup
The goal is 2,700 jobs after competitive freight service arrives this
year. Tough problems remain.
By Henry J. Holcomb

City and port officials have grand plans to build a job-creating
economic boom around the competitive rail freight service they have been
promised will arrive this summer with the breakup of Conrail.

Right now, the city and port authority are negotiating on a range of
issues -- including financing new rail facilities and forming marketing
partnerships with the railroads -- all designed to persuade companies to
move manufacturing and distribution businesses to the region.

Manuel N. Stamatakis, chairman of the Delaware River Port Authority, and
other key players profess optimism about pulling all this off -- and
about producing 2,700 jobs in the near future and many more down the
road.

But they acknowledge that the job is far more difficult than some
expected, and that the hoped-for benefits still could be lost.

"Lots of details have surfaced that need to get worked out," Stamatakis
said last week.

Most of these issues are related to the very thing the local officials
hope to exploit -- competition.

The city and the port authority are doing things to make sure that all
three railroads that will serve the region -- CSX, Norfolk Southern and
Canada's CP Rail -- have a strong opportunity to serve customers here.

The railroads, meanwhile, are doing what railroads do -- plotting to get
a competitive advantage over each other.

Archrivals CSX and Norfolk Southern fought hard to buy Conrail. When
their struggle ended in a stalemate, they compromised on a breakup plan,
and jointly paid $10.3 billion -- $115 per share in cash, the most ever
paid for a railroad. With that high purchase price and
higher-than-expected breakup transition costs, they have restless
shareholders to please.

The acquisition, as approved by the federal government last summer,
assured that Philadelphia's seaport and most of its industrial sites
would have competitive access to both railroads.

Each company has sought to interpret parts of that agreement to its own
advantage.

CSX and Norfolk Southern recently settled their most serious
Philadelphia-area dispute -- over access to a key rail yard -- that
Norfolk Southern said threatened to limit its access to key seaport
terminals.

But other problems remain.

At the moment, the railroads are focused on the details of taking over
Conrail, the Philadelphia freight railroad that was established more
than two decades ago to replace six bankrupt railroads.

Each must take over its piece of Conrail during the Memorial Day
weekend, without a rail-service collapse.

Major disruptions would surely trigger a revolt by shippers, still
simmering over the massive delays and extended service interruptions
that followed Union Pacific's 1996 takeover of Southern Pacific. That
would persuade the Congress to reregulate railroads, railroaders and
shippers say.

Once the breakup tasks are finished, if things go as planned, the
Philadelphia area will for the first time have competitive freight rail
service -- with the lower rates that competition brings -- to virtually
every market east of the Mississippi River as well as improved service
to Canada and the west.

The muscular industrial-development departments of both CSX and Norfolk
Southern will soon be enticing companies to relocate on long-vacant
sites along track they are acquiring from Conrail.

"We could light up this area," Alexander H. Jordan, a corporate affairs
manager for Norfolk Southern, said last week.

The new rail service, along with improvements on the waterfront, could
also make Philadelphia a key military supply port.

"If that happens, we could really have a powerhouse operation,"
Stamatakis said.

If the remaining issues can be worked out, the port authority and the
Philadelphia Industrial Development Corp., the city's economic
development unit, have plans to help both railroads improve facilities
in ways they hope will attract business.

Those plans include loans to build badly needed new yards near the
waterfront in South Philadelphia -- for CSX at Conrail's Greenwich Yard
and for Norfolk Southern at the old Philadelphia Navy Base.

To gain a competitive advantage, CSX has already begun work, with its
own money, on its $15 million Greenwich Yard intermodal facility, which
will be equipped to transfer cargo in truck-size containers between
trains and trucks. It will replace CSX's obsolete and congested CSX
Snyder Avenue Yard.

Craig Lewis, Norfolk Southern's Philadelphia-based vice president for
corporate affairs, was in Roanoake, Va., on Wednesday and Thursday to
speed up work on his company's proposed deal with the port authority.

As envisioned now, the port authority would build and operate an
intermodal yard for Norfolk Southern. It would be on 100 acres of the
old Mustin Field Naval Air Station at the eastern end of the old Navy
Base. The Kvaerner Shipyard is being built at the west end of the base.
The cost of the rail yard would be covered by lease payments from
Norfolk Southern, Stamatakis said.

"In return, we have agreed to take the lead responsibility for marketing
the remaining area on the east end of the base to industrial users,"
Lewis said.

Norfolk Southern would build other rail facilities on about 110 acres
adjacent to the intermodal yard, north of the Mustin Field runway, "that
would be a focal point for industrial development," Lewis said.
Stamatakis said the new yards would generate 2,700-plus jobs in the
region soon after the new yards are in operation.

But he said the real job growth would come from the firms drawn to the
old Navy Base by Norfolk Southern.

For that to happen, the city and port authority say they must build a
road across land to be owned by Norfolk's arch rival, CSX.

This road, to be built with federal money, would connect the Norfolk
Southern area on the Navy Base with Columbus Boulevard (formerly
Delaware Avenue) and its maritime terminals. It could restrict future
use of the now-idle Pier 124, which is being taken over by CSX.

"We're being asked to give up something we just paid for to help a
competitor," lamented CSX spokesman Bob Sullivan.

There are similar concerns about another element of the grand plan -- a
new terminal for a new generation of high-speed ocean cargo ships.

The port authority invested $7 million, added to more than $3 million
put up by two local maritime businessmen, Thomas J. Holt Sr. and Dennis
Colgan Jr., to help complete design of those ships by FastShip Inc. In
response to that, the company moved to Philadelphia and agreed to make
the city the only American port for the transatlantic service it will
offer if the company can come up with money to build the ships.

The port authority initially planned to put FastShip on the Navy Base,
where it now wants to build the Norfolk Southern yard. It wants to put
FastShip on a portion of CSX's Greenwich Yard.

Because Norfolk Southern has a much faster route between Philadelphia
and Chicago, Norfolk Southern would get most of any rail business
FastShip might generate. So, as on the road issue, CSX questions why it
should give up land it might need later to help a rival.

Even if those thorny issues get worked out, there is still a lingering
problem with the Navy's bureaucracy. The Pentagon decided to close the
base eight years ago. The base's shipyard finished its last project,
overhaul of the aircraft carrier John F. Kennedy, in 1995. With the
playing of Taps and lowering of the flag, the base officially closed on
Sept. 27, 1996.

Despite high-level promises in 1997 that "only three or four technical
issues" remain, the Navy still hasn't turned the property over to the
city. So there is still military-like security at the gates, hampering
trucks going to the new CP Rail bulk cargo transfer yard on the west
side of the base and other new tenants.

It has also made it difficult for prospective developers to visit the
area. On Thursday morning, for example, Thomas G. Washbon, an industrial
development manager for Norfolk Southern, was quite rudely turned away
from the gate nearest the area his company is proposing to help the city
develop.



CRTS Update #02-07
Saturday, February 6th, 1999 at 15:45 EST


RADIO FREQUENCY CHANGES:

Effective January 21st, 1999, the following radio frequency changes
took place on the Indianapolis Division:

*Toledo Branch/Scottslawn Secondary - Now channel 3 (formerly channel 4)
*Buckeye Yard - Now 160.920 (formerly channel 3)
*Buckeye Van Site - Now channel 3 (formerly 160.920)

Also, on the Albany Division's Hudson Line, crews now change from
channel 1 to channel 2 at CP-141 instead of at milepost 130.

Channel 1 = 160.800
Channel 2 = 161.070
Channel 3 = 160.860
Channel 4 = 160.980



CRTS Update #01-72
Tuesday, January 26th, 1999 at 11:30 EST


PHILADELPHIA, Jan. 25th, 1999 -- Timothy T. O'Toole, President and
Chief Executive Officer of Consolidated Rail Corp. (Conrail) issued the
following statement today:


"Along with their families and coworkers, we mourn the tragic losses
of four of our colleagues this month in accidents. We need to learn from
each of these events to make sure similar accidents do not happen again.

"Despite our achievements last year, when we were the only major U.S.
railroad without a single on-the-job fatality, these sad events remind us that
we can never let down our guard when it comes to safety. I am asking everyone
at Conrail to rededicate themselves to safety with increased vigilance, so
that we can keep these tragedies from being repeated."



CRTS Update #01-70
Tuesday, January 26th, 1999 at 11:00 EST


Questions over mergers and safety rise after four deaths aboard Conrail
BY RIP WATSON

Questions about the relationship between rail mergers and safety again
are being raised in the aftermath of four on-duty employee deaths at
Conrail Inc.

The United Transportation Union is pressing the Federal Railroad
Administration for an investigation into the circumstances surrounding
three separate fatal incidents between Jan. 14 and Jan. 22 at the
railroad that was acquired by CSX Corp. and Norfolk Southern Corp. last
year.

Efforts by UTU to step up the pressure on Conrail are identical to union
efforts in the summer of 1997 to force changes in safety practices on
Union Pacific Railroad.

CSX and NS are to take over their respective portions of Conrail on June
1. Until then, the railroad is being operated independently. Prior to
their acquisition, both carriers submitted detailed plans meant to
enhance post-merger safety and avoid a repetition of past problems.

A string of accidents that killed nine persons on the UP in less than
two months triggered an FRA safety audit and compliance proceeding in
which the agency concluded that UP's merger with Southern Pacific eroded
safety on that railroad.

The latest request came in a letter sent Monday by UTU president Charles
Little to FRA Administrator Jolene Molitoris.

In his letter, Mr. Little said "four deaths in days demands that fast
action be taken to intensely investigate safety and training procedures
at Conrail. These incidents are every bit as serious as the UP problem,
and deserve the same scrutiny."

"The number of accidents within such a short time span ... is of such a
character that it must be immediately learned whether there is a
systemic operating deficiency at Conrail that degrades safety," Mr.
Little wrote. "Our members and the public are entitled to know now the
status of operations on Conrail."

FRA spokeswoman Pam Barry said: "On the face of it, there is no obvious
linkage between these collisions."

She said FRA will take a more detailed look at the safety issues in
light of the accidents, including a Friday meeting in Philadelphia that
involves agency safety officials and representatives of NS, CSX and
Conrail.

That meeting will review issues such as operational, training and
supervision issues raised by the acquisition of Conrail, she said. After
that session ends, FRA will brief rail union representatives.

In the most recent accident on Jan. 22, a Conrail employee and UTU
member in the Buffalo area died in a derailment.

Two more rail workers, a UTU member a member of the Brotherhood of
Locomotive Engineers, died Jan. 17 near Toledo, Ohio. Three days before,
a UTU member working in the rail yard at Port Newark, NJ was killed.



CRTS Update #01-66
Sunday, January 24th, 1999 at 17:15 EST


Broken train wheel suspect in derailment
Investigators say prior damage may have caused freight cars to jump track
MICHAEL P. BRUNO

NELLISTON -- Investigators believe a broken wheel on one of the freight
cars may have caused the train derailment of 33 cars carrying flammable
liquid, a Conrail spokesman said Saturday.

The derailment about 6 p.m. Thursday forced more than 150 people to be
evacuated from their homes, but all were allowed back by 6 p.m.
Saturday, said spokesman Robert Libkind.

"On a preliminary basis, it appears the cause was a broken wheel --
broken before the accident -- on a freight car,'' said Libkind. Investigators
don't believe human error or problems with the heavily used track
contributed to the accident. The wheel has been sent to a Conrail lab in
Altoona, Pa. for further examination.

The train carrying propane, butane and other hazardous and flammable
chemicals was traveling eastbound from Niagara Falls to Selkirk when it
derailed along the banks of the Mohawk River. The accident forced officials
to close a 75-mile stretch of the New York State Thruway for hours.

Service on the line was expected to resume late Saturday night, Libkind
said. Workers are bringing in about 2,400 feet of panel track, or prebolted
railroad ties, to create a bypass around the section where the derailment
occurred, he said.

The bypass, called a shoofly track, will run for about 10 miles, Libkind
said. Though there are two rail lines there, trains in both directions
will have to slow to 10 mph, with the panel tracks shuttling the trains on
and off a single track for the 10-mile stretch, he said.

The accident also disrupted Amtrak passenger service between Utica and
Albany, with Amtrak busing people along the route. An Amtrak spokesman said
normal service would resume today.

Workers have rerailed 22 cars and are attempting to set aside the rest,
Libkind said. They are also focusing on one tanker that leaked propane,
although Libkind said he was unaware of any chemicals seeping into the
river. Workers conducted a controlled burn of vapors from that tanker
overnight Friday after removing as much of the liquid fuel as possible,
he said. Another controlled burn lasting a few days will likely be needed,
he added.

"Through all of this, the number-one concern is taking care of the
safety situation for everyone -- workers and residents,'' he said.



CRTS Update #01-63
Sunday, January 24th, 1999 at 11:00 EST


NATIONAL TRANSPORTATION SAFETY BOARD
Abstract to Final Report:
Rear-End Collision/Derailment
Conrail
Hummelstown, Pennsylvania
September 29, 1997

This is an abstract from the Safety Board's report and does not include
the Board's rationale for the conclusions, probable cause, and safety
recommendations. Safety Board staff is currently making final revisions
to the report from which the attached conclusions and safety
recommendations have been extracted. The final report and pertinent
safety recommendation letters will be distributed to recommendation
recipients as soon as possible. The attached information is subject to
further review and editing.

ACCIDENT SUMMARY

On September 29, 1997, about 5:45 p.m. eastern daylight time, eastbound
Consolidated Rail Corporation (Conrail) train PIBE-8, consisting of 2
locomotive units and 136 cars, passed a stop and proceed signal at 30
mph and struck the rear locomotive unit of eastbound Conrail train
ENS-103, consisting of 5 locomotive units. Train ENS-103 was stopped at
signal 1081E (milepost 104.2 at control point [CP] Tara) in Hummelstown,
Pennsylvania. Each train was crewed by a conductor and an engineer. The
conductor on train PIBE-8 sustained fatal injuries in the accident. No
other injuries were reported. Damages were estimated at $571,700.
Weather conditions were clear, with bright sunlight and a temperature of
65 F.

The train ENS-103 crew went on duty at 2:30 p.m. at Enola Yard near
Harrisburg, Pennsylvania. The crew picked up five locomotive units at
the diesel shop and began a trip to Oak Island Yard in Newark, New
Jersey. According to event recorder data, the train had been halted at a
stop signal at 1081E for 28 minutes when the rear-end collision
occurred.

Train PIBE-8 departed Harrisburg about 4:15 p.m. en route to Allentown,
Pennsylvania. As the train approached signal 1061E, the signal was
displaying a stop and proceed (red over red signal aspect) indication.

1 The engineer stated that both he and the conductor observed and called
the signal as "approach medium" (yellow over green signal aspect).

2 The engineer said the train was traveling about 10 mph when he and the
conductor observed the signal; the engineer then allowed the train to
increase speed to about 30 mph, which would have been an appropriate
response to an approach medium signal. He stated that as train PIBE-8
came around the lefthand curve, he observed train ENS-103 stopped at CP
Tara. The train PIBE-8 engineer put his train into emergency braking but
was unable to stop short of train ENS-103.

Post-accident tests revealed that signal 1061E, located about 2 miles
west of signal 1081E, was coded to display a stop and proceed signal.
The tests also confirmed that the signals were properly wired.
Postaccident inspection of signal 1061E revealed that the stop and
proceed signal was out of focus. Rusty water was found in the signal
lens. When viewed from the track, the signal was partially obscured by
tree foliage.

On October 1, 1997, National Transportation Safety Board investigators,
with representatives of the Federal Railroad Administration, the
Brotherhood of Locomotive Engineers, the United Transportation Union,
and Conrail, used a locomotive to replicate the preaccident events. In
sunny conditions, the test locomotive traveled eastbound toward signal
1061E at the same time of day that the incident occurred. Signal 1061E
was set to display a stop and proceed signal.

When the test locomotive had moved to within about 1,500 feet of signal
1061E, the signal could not be clearly distinguished by persons on the
locomotive. As the locomotive approached the signal more closely, the
top aspect of the signal appeared to be yellow and the bottom aspect
appeared to be green. Eventually, as the locomotive moved still closer
to signal 1061E, the signal aspect could not be distinguished at all.
Persons on the test locomotive variously reported seeing yellow, red,
and green aspects.

The out-of-focus condition of signal 1061E, in combination with the late
afternoon sun shining on the signal face and the water in the lens,
probably made the signal aspect appear to the train PIBE-8 train crew to
be yellow over green instead of its actual display, which was a red over
red aspect. The result was a "phantom signal." A phantom signal is
defined by the Association of American Railroads Signal Manual as "an
aspect displayed by a light signal, different from the aspect intended,
caused by a light from an external source being reflected by the optical
system of the signal."

PROBABLE CAUSE

The National Transportation Safety Board determines that the probable
cause of the accident was a phantom signal indication that resulted
because the Consolidated Rail Corporation failed to ensure that the
signal aspects displayed could be properly seen by train crews.

1 This indication calls for the train crew to stop and then proceed at
restricted speed.

2 An approach medium indication calls for the train crew to proceed to
the next signal not exceeding medium speed.



CRTS Update #01-58
Saturday, January 23rd, 1999 at 16:10 EST


NORFOLK SOUTHERN TENATIVE LIST OF HARRISBURG DIVISION YARD JOBS:

NS Symbol       Terminal                Former Conrail Symbol

HM01            Abrams, PA              YPAB-01
HM02            Abrams, PA              YPAB-02
HM12            Abrams, PA              YPAB-22
HM31            Abrams, PA              YPAB-12
HA01            Allentown, PA           YPEX-A1
HA10            Allentown, PA           YPAL-10
HA11            Allentown, PA           YPAL-11
HA13            Allentown, PA           YPAL-13
HA15            Allentown, PA           YPAL-15
HA20            Allentown, PA           YPAL-20
HA21            Allentown, PA           YPAL-21
HA32            Allentown, PA           YPEX-A2
HA25            Allentown, PA           YPAL-25
HA40            Allentown, PA           YPAL-30
HA41            Allentown, PA           YPAL-31
HA43            Allentown, PA           YPEX-A3
HA45            Allentown, PA           YPAL-35
HA46            Allentown, PA           YPAL-36
HA47            Allentown, PA           YPAL-37
HA61            Allentown, PA           YPAL-R1
HA62            Allentown, PA           YPAL-R2
HA63            Allentown, PA           YPAL-R3
HA64            Allentown, PA           YPAL-R4
HA95            Allentown, PA           YMWP-C1
HB02            Baltimore, MD           YPBV-02
HB04            Baltimore, MD           YPBV-04
HB06            Baltimore, MD           YPBV-06
HB08            Baltimore, MD           YPBV-08
HB09            Baltimore, MD           YPBV-09
HB32            Baltimore, MD           YPBV-32
HB34            Baltimore, MD           YPBV-34
HB38            Baltimore, MD           YPBV-38
HB42            Baltimore, MD           YPBV-62
HB44            Baltimore, MD           YPBV-64
HB48            Baltimore, MD           YPBV-68
HB64            Baltimore, MD           YPBV-R1
HB65            Baltimore, MD           YPBV-R2
HC10            Croxton, NJ             YPCX-10
HC20            Croxton, NJ             YPCX-20
HC41            Croxton, NJ             YPCX-11
HD01            Edgemoor, DE            YPED-01
HD02            Edgemoor, DE            YPED-02
HD03            Edgemoor, DE            YPED-03
HD31            Edgemoor, DE            YPED-30
HE01            Elmira, NY              YAEL-01
HF10            Morrisville, PA         YPMO-10
HF30            Morrisville, PA         YPMO-30
HH02            Harrisburg, PA          YPHB-20
HH05            Harrisburg, PA          YPHB-25
HH12            Harrisburg, PA          YPHB-12
HH13            Harrisburg, PA          YPHB-13
HH33            Harrisburg, PA          YPHB-33
HH35            Harrisburg, PA          YPHB-35
HH36            Harrisburg, PA          YPHB-36
HH44            Harrisburg, PA          YPHB-64
HH48            Harrisburg, PA          YPHB-68
HH59            Harrisburg, PA          YPHB-79
HH63            Harrisburg, PA          YPHB-R2
HL03            Lebanon, PA             YPLE-13
HN11            Northumberland, PA      YPNO-11
HO01            Enola, PA               YPEE-01
HO11            Enola, PA               YPEN-10
HO40            Enola, PA               YPEE-03
HO41            Harrisburg, PA          YPEH-01
HO42            Enola, PA               YPEE-04
HO61            Enola, PA               YPEE-R1
HP02            Pottstown, PA           YPPT-32
HR05            Reading, PA             YPRE-25
HR12            Reading, PA             YPRE-12
HR16            Reading, PA             YPRE-16
HR25            Reading, PA             YPRE-15
HR32            Reading, PA             YPRE-32
HR39            Reading, PA             YPRE-39
HR45            Reading, PA             YPRE-65
HR46            Reading, PA             YPRE-66
HR47            Reading, PA             YPRE-67
HR48            Reading, PA             YPRE-68
HR61            Reading, PA             YPRE-R1
HS11            Shiremanstown, PA       YPST-11
HS12            Shiremanstown, PA       YPST-12
HS31            Shiremanstown, PA       YPST-31
HS32            Shiremanstown, PA       YPST-32
HV12            Lancaster, PA           YPLA-12
HV13            Lancaster, PA           YPLA-13
HV25            Lancaster, PA           YPLA-25
HV31            Lancaster, PA           YPLA-31
HV41            Lancaster, PA           YPLA-61




CRTS Update #01-57
Saturday, January 23rd, 1999 at 14:25 EST


NORFOLK SOUTHERN PRELIMINARY LIST OF HARRISBURG DIVISION LOCAL TRAINS:

NS Symbol       Terminal                Former Conrail Symbol

H01             Binghamton, NY          WABH-11
H04             Baltimore, MD           WPBV-20
H08             Campbell Hall, NY       WACH-01
H09             Campbell Hall, NY       WACH-03
H13             Ithaca, NY              WAIT-01
H14             Olean, NY               WAOL-01
H16             Olean, NY               WAOL-02
H19             Olean, NY               WAOL-04
H20             Edgemoor, DE            WPED-10
H21             Lancaster, PA           WPLA-01
H22             Lancaster, PA           WPLA-02
H23             Lancaster, PA           WPLA-03
H24             Hershey, PA             WPHE-02
H25             Abrams, PA              WPAB-76
H27             Lancaster, PA           WPLA-75
H28             Lancaster, PA           WPLA-80
H29             Lancaster, PA           WPLA-81
H30             Lancaster, PA           WPLA-85
H31             Lebanon, PA             WPLE-33
H32             Hagerstown, MD          WPHT-05
H33             Hagerstown, MD          WPHT-01
H34             Hagerstown, MD          WPHT-03
H35             Newark, DE              WPNK-20
H37             Newark, DE              WPNK-24
H40             Newark, DE              WPNK-26
H41             Newark, DE              WPNK-28
H42             Harrington, DE          WPHA-40
H43             Harrington, DE          WPHA-19
H44             Northumberland, PA      WPNO-04
H45             Northumberland, PA      WPNO-06
H46             Northumberland, PA      WPNO-08
H47             Reading, PA             WPRE-10
H48             Reading, PA             WPRE-22
H50             Reybold, DE             WPRY-15
H51             Reybold, DE             WPRY-16
H53             Reybold, DE             WPRY-13
H57             Seaford, DE             WPSE-14
H58             Shiremanstown, PA       WPST-01
H59             Shiremanstown, PA       WPST-03
H61             Harrington, DE          WPHA-21
H63             Baltimore, MD           WPBV-01
H64             Baltimore, MD           WPBV-10
H65             Allentown, PA           WPAL-18
H66             Allentown, PA           WPAL-19
H71             Allentown, PA           WPAL-16
H74             Allentown, PA           WPAL-10
H75             Allentown, PA           WPAL-12
H78             Allentown, PA           WPAL-01
H83             Abrams, PA              WPAB-24
H84             Abrams, PA              WPAB-34
H85             Abrams, PA              WPAB-20
H92             Delmar, DE              WPDE-01
H93             Delmar, DE              WPDE-07
H96             York, PA                WPYO-35
H97             Hazelton, PA            WPHZ-10
H98             Hazelton, PA            WPHZ-11
H99             Hazelton, PA            WPHZ-20
H94             Dover, DE               WPDD-16




CRTS Update #01-51
Friday, January 22nd, 1999 at 07:00 EST


MOMENT OF SILENCE:

At noon EST on Friday, January 22nd, 1999 various crafts within the
Dearborn Division will arrange to stop all movements and work in advance
at a safe location and remain stopped for two minutes of silent
reflection in honor of our fellow railroaders who recently lost their
lives at Stryker, OH. All work will resume at 12:02 EST.



CRTS Update #01-47
Thursday, January 21st, 1999 at 21:20 EST


Black box' recorder yields data in train crash as inquiry proceeds

BY DAVID PATCH

NAPOLEON - Useful data has been recovered from an event recorder aboard
the front locomotive of a Conrail train that slammed into the rear of a
second train early Sunday near Stryker, killing two crewmen on board, a
federal official said yesterday.

Accident investigator Jay Kivowitz briefs reporters on the rail crash
investigation. But Jay Kivowitz, who is leading the National
Transportation Safety Board's investigation of the accident,
revealed no details about the data in the so-called ``black box,'' nor
did he disclose any other developments in the inquiry.
``All the parties are working very hard not to miss anything,'' said Mr.
Kivowitz, the investigator in charge of a team of safety board, Federal
Railroad Administration, and railroad management and labor
representatives.

Engineer Roger Bell, 57, of Oregon, and conductor Raymond Corell, 52, of
Angola, Ind., died when their Chicago-bound train hauling truck trailers
and containers struck the rear of another Chicago-bound trailer train
near Williams County Road 19 about 2 a.m. Sunday.

Wreckage spilled onto a parallel track, derailing a third train that was
traveling in the opposite direction. The two-person crews on the front
train and the passing train were not injured.

Mr. Kivowitz said Monday that formal safety board findings on the
accident and its cause may take as long as nine months to complete.
Information gathered as part of the investigation will become public
once a report is prepared for the safety board's review, he said.

The investigator said he did not know when a preliminary report will be
issued.

''There's a lot of information being developed,'' Mr. Kivowitz said.
''This really is a very big puzzle. We're going to take all these little
pieces and see how they all fit together.''

Event recorders were recovered from all three locomotives that were
pulling the train Mr. Bell and Mr. Corell were operating Sunday morning,
but the collision destroyed one of them. Mr. Kivowitz had said Monday
that another recorder, from the front locomotive, was in uncertain
condition, but yesterday he announced that its manufacturer had opened
it successfully and retrieved data that appeared to be undamaged.

Officials weren't sure how useful the third locomotive's event recorder
will be.

Railroad event recorders show a locomotive's speed and the position of
its throttle and brake controls. Such information shows how an engineer
was driving a train.

Another of the puzzle pieces is the operation of a signal system along
the Conrail tracks that is supposed to prevent train collisions.

The signals function similarly to a series of stoplights with occasional
traffic cops, although there are some key differences.

Like many other busy main lines, the Conrail route west from Toledo
toward Chicago uses a system called Centralized Traffic Control, under
which train dispatchers electronically control track switches and
signals at certain points along the tracks. Trains may not pass a
dispatcher-controlled point unless a signal more favorable than ``stop''
is displayed or the crew receives specific permission from the
dispatcher.

In between those controlled points are automatic ``intermediate''
signals display lights that tell trains whether the track ahead is
occupied. By closing an electrical circuit along a section of the track,
a train causes a signal behind it to display a red light, and causes the
second signal behind it to display yellow.

When neither of the next two track sections past an intermediate signal
is occupied, then the signal displays green, which advises the train
crew that the train may proceed at maximum speed. Some systems use
different methods, such as rows of lights rather than colored lights, to
convey the same information.

While railroad operating rules allow a train to pass an ``intermediate''
signal displaying a red light, they may do so only at a very slow speed
- typically no faster than 15 mph - and in most cases must stop before
proceeding.

The collision site Sunday was between two ``intermediate'' signals. If
the signal system was functioning properly, then the train that came up
from behind had passed at least one yellow signal and at least one red
signal before colliding with the train ahead.

Mr. Kivowitz said signal tests still were in progress yesterday. But he
said that initial tests revealed no problems, and that the two crewmen
of the train in front reported nothing unusual about the signals they
had seen. The investigator said Monday that the train in front had
slowed down because of yellow signals caused by other trains ahead of
it.

Signal systems are designed to display red lights if their circuitry
fails, but on rare occasion a relay failure can cause a signal to
display a ``false'' green.

A related issue is the possibility that dense fog reported in the
Stryker area may have impaired the second train crew's ability to see
the signals.

Mr. Kivowitz remarked, however, that even if it was foggy Sunday
morning, ``Fog is certainly nothing new in the railroad industry.''

Some Conrail tracks, along with certain tracks owned by other railroads,
have additional circuitry that allows a signal display to be transmitted
directly into the cab of a locomotive.

Such ``cab signal'' systems reduce the potential role that fog can play
in railroad operations, but neither the Conrail line west of Toledo nor
any other railroad line in northwest Ohio or southeast Michigan is so
equipped. Federal regulations require cab signals only where trains
travel at speeds of 80 mph or faster, while the top speed limit on
Conrail's main line is 79 mph and freight trains' maximum is 60.

CSX Transportation Corp. and Norfolk Southern Corp. require their train
engineers to announce signals they observe over their trains' radios,
ostensibly to maintain the crews' alertness and to advise other trains
in the area of their presence and progress.

But Conrail has no such rule.

Bob Libkind, a Conrail spokesman, said that if all trains operating on
the Toledo-Chicago main line, which tracks scores of trains each day,
were to announce their signals, other radio communication would be
impossible.

Mr. Kivowitz said tapes from the Conrail radio system have been
impounded and will be transcribed and scrutinized for any clues they may
provide about the accident.



CRTS Update #01-40
Wednesday, January 20th, 1999 at 20:30 EST


Norfolk Southern and CSX Announce Readiness for June 1 Conrail
Transaction Closing Date

NORFOLK and RICHMOND, VA -- Norfolk Southern Corporation (NYSE: NSC)
and CSX Corporation (NYSE: CSX) jointly announced today that they will
close the Conrail transaction on June 1, 1999, and begin operating
their respective portions of Conrail's routes and assets.

With the necessary customer service planning, capital improvement
projects, employee training and labor implementing agreements now
largely complete, and with computer systems integration testing under
way, the June 1 date provides ample time for ensuring that post-Closing
operations are seamless for rail customers and safe for employees and
the communities that the railroads serve.

"Our heightened readiness will give customers, stockholders,
employees and communities a high degree of confidence that our expanded
system will meet their expectations for safe, reliable rail service,"
said David R. Goode, Norfolk Southern chairman, president and chief
executive officer. "We will avoid problems of the kind that could cause
inconvenience to the public and thereby compromise expected operating
and financial synergies. We want to get things right - from the start."

John W. Snow, CSX chairman and chief executive officer, said, "We
have been consistent in our definition of a successful integration, and
we have gone to extraordinary lengths over the past 15 months to assure
success. Any other approach would have been shortsighted. We are now
within a few months of beginning the new era of railroading in the
East, and we look forward to the high prospects it brings our
customers, shareholders, employees and the public."

After Closing, Norfolk Southern will operate about 7,200 miles of
Conrail routes, creating a 21,600-mile rail system serving 22 states in
the East, as well as in the District of Columbia and the Province of
Ontario, Canada. CSX will operate approximately 4,000 miles of Conrail
routes, resulting in a 22,300-mile rail system serving 23 states east
of the Mississippi, the District of Columbia and Montreal and Ontario,
Canada.

Norfolk Southern Corporation, a Virginia-based holding company
with headquarters in Norfolk, owns a major freight railroad, Norfolk
Southern Railway, which will operate its portion of the Conrail
properties.

CSX Corporation, based in Richmond, Va., is an international
transportation company providing rail, intermodal, container-shipping
and contract logistics services worldwide.



CRTS Update #01-35
Tuesday, January 19th, 1999 at 14:45 EST


Norfolk Southern and Amtrak Discuss Running Freight on High-Speed Route
By DANIEL MACHALABA

In a move that could speed freight shipments and notch up rail competition in
the Northeast, Norfolk Southern Corp. is negotiating with Amtrak to run
freight trains on Amtrak's high-speed New York-to-Washington passenger
route, according to officials on both sides.

The plans are a sign that Norfolk Southern intends to move aggressively to win
freight business when it divides Conrail Inc. with CSX Corp. as early as
March. The $10 billion carve-up of Conrail, the largest railroad merger in
history, gives Norfolk 58% of Conrail's potentially lucrative Northeast
rail system.

Use of the Amtrak corridor, which is shorter and more direct than other
tracks, would allow Norfolk Southern to offer faster schedules for more
than $5 billion in annual shipments from the South and Midwest to the New
York area, the nation's largest consuming market. The move would free up
track space and ease congestion on the Conrail routes that Norfolk Southern
will use to move shipments to the area. Norfolk Southern is also negotiating to
use Amtrak's route between Philadelphia and Harrisburg, Pa.

The plan would also represent a revenue boost for Amtrak, which is under a
federal mandate to improve its financial performance and operate without
federal subsidies by the end of 2002.

But there are major risks for Amtrak, which is trying to boost its on-time
performance. Addition of freight trains to the busy Amtrak Northeast Corridor,
which already handles hundreds of Amtrak and commuter trains every day,
could lead to disruptions and delays for passengers.

Major Issues to Resolve

Norfolk Southern, Norfolk, Va., and Amtrak, Washington, still have major
issues to resolve and a deal could still fall apart, according to individuals
close to the discussions. Spokesmen for the companies, while acknowledging the
talks, declined to discuss details.

Nevertheless, the plan comes as the railroad industry reaches an important
juncture. After a string of big mergers and service failures, railroads
have come under attack by government, and more importantly, their own
customers. "Their future is mostly in their own hands," said Anthony Hatch, an
independent transportation analyst in New York. "Either railroads improve
service and grow and make good on their huge investment, or fall into a
state of permanent regression and contraction."

Under the plan, Norfolk Southern would operate trains for its Triple Crown
subsidiary on Amtrak routes connecting northern New Jersey with Washington,
Philadelphia and Harrisburg, Pa. Norfolk Southern wouldn't actually send
its trains into Manhattan but would unload and load the trains in terminals
nearby in New Jersey. To minimize delays, Norfolk Southern would be allowed to
operate freight trains on the Amtrak corridors only during off hours, between
10 p.m. and 6 a.m. What's more, Norfolk Southern trains would consist of
specialized units that are more compatible with high-speed operations.

Expected Time Savings

As an example of the time savings for rail customers, a train that now takes
32 to 34 hours to travel between Atlanta and northern New Jersey would take 26
to 28 hours. By saving about six hours for shippers, Norfolk Southern hopes to
better compete with truckers.

This isn't the only sign that Norfolk Southern is gearing up to compete for
freight in the Northeast. Last week, Norfolk Southern said it would become the
chief user of a sprawling new rail-freight terminal that will emerge on
Bethlehem Steel Corp.'s old steelmaking complex in Bethlehem, Pa. The new
terminal will serve blossoming freight shipments in Pennsylvania's Lehigh
Valley as well as be strategically located for the New York and Philadelphia
markets.

CSX, Richmond, Va., which is going to operate 42% of Conrail, said it already
invested more than $220 million to expand its tracks through Indiana and Ohio
into a high-speed route to the Northeast. In addition, it is investing in
construction and expansion of freight terminals in key cities in the Midwest
and the Northeast.

Plans to carve up Conrail followed a bitter four-month battle in 1996 and 1997
that pitted Norfolk Southern against CSX. Although CSX initially proposed to
buy all of Conrail, Norfolk Southern countered with its own offer, and the two
ended up splitting Conrail's 12,000-mile rail network.



CRTS Update #01-28
Sunday, January 17th, 1999 at 20:00 EST


DERAILMENT UPDATE:
It now appears that the chronology of the Byran, OH wreck was as follows;

At 01:58 EST westbound intermodal train TV-7-15 with SD80MAC's
4129/4115 was stopped on track one at CP-340, eastbound empty unit
coiled steel train MGL-16-16 with GP15-1's 1697 and 1668 crossed over
from track one to track two in front of train TV-7-15. After MGL-16-16
cleared, the dispatcher gave train TV-7-16 the signal to depart, the
train was beginning to accelerate westbound when train Mail-9-15 with
C40-8W 6096 and C40-8's 6049 and 6031 plowed into the rear of train
TV-7-15 derailing the three rear cars on train TV-7-15, KCS 9063, TTAX
77016, and CP 505287. The force of the impact imbedded the lead
locomotive C40-8W 6096 into the rear car of train TV-7-15, propelled the
second unit C40-8 6049 over the low profile of the empty coiled steel
cars, and the third unit C40-8 6031 into train MGL-16-16 passing on the
adjacent track derailing 19 cars on train MGL-16-16. The collision also
lead to the derailment of the head ten cars on train Mail-9-16, TTEX
353270, KTTX 150957, TTAX 653940, WTTX 604186, TTAX 553890,
TTOX 121105, TTEX 353277, TTAX 554528, DTTX 427258, and
TTAX 78057. Unfortunately, both the engineer and conductor on train
Mail-9-16 were killed in the accident.

Current Detour Situation:

Amtrak 29-16 detoured via CSXT from Toledo, OH to Fostoria, OH to Chicago, IL

Amtrak 49-16 detoured via CSXT from Toledo, OH to Fostoria, OH to Chicago, IL

Amtrak 43-17 was terminated at Pittsburgh, PA

Amtrak 44-17 originated at Pittsburgh, PA

Amtrak 30-17 is scheduled to operate via Detroit, MI

Amtrak 48-17 is scheduled to operate via Detroit, MI

Mail-8-17 was last reported CP-Hick, IN at 12:20 CST
5523/6792 (via CSXT (B&O)

Mail-8M-17 was last reported at CP-100, IN at 15:22 EST
6742/5087/6280 (via CXST (B&O)

Train Mail-9X-17 was last reported at CP-Nasby, OH at 17:08 EST
6613/6070 (via Detroit)

Train TVLA-6 was last reported at CP-Cowling, MI at 18:00 EST
6003/6130/6278/5608

Train TV-1-16 was last reported at CP-Big Run, OH at 17:55 EST
6579/6202/6856 (via Fort Wayne Line)

Train TV-1H was last reported terminating at Canton, OH at 09:18 EST
5555/2567 (via Fort Wayne Line)

Train TV-7-16 was last reported at CP-17, OH at 17:40 EST
5515/5552/6449 (to CSXT at Greenwich, OH)

Train TV-9-16 was last reported at CP-37, OH at 16:52 EST
SP 9710/5540/5627/6139/6524/6666 (to CSXT at Greenwich, OH)

Train TV-10-17 was last reported at Willow Run, MI at 14:27 EST
5633/5598/6198 (via Detroit, MI)

Train TV-10B-17 was last reported at CP-501, IN at 11:46 CST
6437/5084 (via CSXT to Toledo, OH via Fostoria, OH)

Train TV-11-16 was last reported at CP-Colsan, OH at 14:37 EST
5520/5085/6478 (via Fort Wayne Line)

Train TV-12-17 was last reported at Detroit-Livernois, MI at 17:46 EST
6231/6636/UP 2477

Train TV-12X-17 was last reported at Detroit-Livernois, MI at 17:57 EST
6242/6279

Train TV-13-16 (combined with train Mail-9H-16 at Toledo, OH)
was last reported at Toledo, OH at 16:29 EST
6257/6769/6028 (via Detroit, MI)

Train TV-14-16 was last reported at Detroit-Livernois, MI at 17:50 EST
5601/6281/BN 6867

Additional Complications:
Train TV-12X has derailed at the Norfolk Southern diamond at Ecorse, MI
Train TV-13's power has died and the power off train EJDL-7 is currently
enroute to assist.



CRTS Update #01-14
Tuesday, January 12th, 1999 at 17:45 EST


Railroads to Become First Industry to Publish Weekly Performance Measures

WASHINGTON, Jan. 12th, 1999 -- Freight railroads will become the nation's
first industry to publish weekly performance measures beginning tomorrow
(January 13). In addition to U.S. Class I railroads, the reports will also be
filed by Canada's two major railroads.

"Railroad customers told us they wanted more information and they wanted it
updated frequently," said Edward R. Hamberger, President and Chief Executive
Officer of the Association of American Railroads (AAR). "During a series of
regional meetings with our customers during the last half of 1998, we promised
to provide that information. We will make this data available every week as
part of our commitment to improve communications between ourselves and our
customers."

The information will be provided through a series of four performance measures
that will serve as indicators of how well traffic is moving through a
railroad's system. Rail customers will have easy, convenient access to the
data from the Internet.

The four measures being published by the railroads are:

* Total Cars On Line;

* Average Train Speed;

* Average Terminal Dwell Time;

* Freight cars received without a bill of lading.

"Although railroads have long had similar information available for their own
internal uses, it is unprecedented for them to make it public," Mr. Hamberger
said. "Rail customers will be able to use that data to determine what is happening
on each railroad. However," he added, "it would be inappropriate and inaccurate
to use the raw data for comparing one railroad's performance with another.

"Operating differences among railroads, traffic mix, weather and terrain
affect average train speed, number of cars on line and terminal dwell time. In
addition, these measurements are not uniformly calculated across the industry
and are therefore inappropriate for comparison," said Mr. Hamberger.

Railroad customers will be able to access data through the Internet site of
their primary carrier. Customers will initially see the data from their
primary carrier's report and will also be able to access the data of all
reporting railroads.

Railroads making the data available include all of the Class I railroads in
the United States as well as Canada's two major railroads: Burlington Northern
Santa Fe; Canadian National; Canadian Pacific; CSX Transportation; Illinois
Central; Kansas City Southern; Norfolk Southern; and Union Pacific. Together
they account for more than 90 percent of all freight rail traffic in the two countries.



CRTS Update #01-02
Wednesday, January 6th, 1998 at 19:45 EST

On Track to Transformation

The Conrail Deal May Be the Least of the Changes at CSX.
A Bigger One Is Remaking an Internal Culture.

By Don Phillips
Washington Post Staff Writer
Monday, January 4, 1999

Sometime in the next few months, Richmond-based CSX Corp.'s eastern
railroad empire will spread into the heavy shipping centers and ports of the
Northeast as the corporation takes over almost half of Philadelphia-based Conrail.

But a stroll through CSX's rail unit headquarters in Jacksonville, Fla., might
leave one wondering who took over whom.

As CSX prepares to go into battle for freight traffic with Norfolk Southern
Corp., which will get the other half of Conrail, CSX operations will be run by
a Conrail man. Its most service-sensitive business unit will be run by a
Conrail man. Labor relations will be run by a Conrail man. Locomotive and
crew management will be the responsibility of a Conrail man. Numerous
other Conrail executives have been moved into upper- and mid-level positions.

The mass migration from Philadelphia to Jacksonville is but one outcropping
of a quiet revolution that has swept over the formerly staid, plodding CSX.

Railroad officials, industry sources, union officials, Wall Street analysts and
others attribute the CSX transformation to two factors:

CSX Chairman John W. Snow became convinced that the railroad had
become so embroiled in the bruising battle for Conrail in 1997 that its service
and revenue were slipping.

There is a fear that failure to do well in the Conrail merger would be the last
straw for Congress and major shippers, already angry about the near
meltdown of service in the West over the last two years after the Union
Pacific merger with Southern Pacific. The whole railroad industry, almost
totally deregulated in 1981, is nervous about the possibility of reregulation.

"We're certainly aware of the risk that would fall on us if we fail," Snow said
in an interview. "We in a real sense are the custodians of the future of the
rail industry. We could not tolerate another failed rail merger."

As in many industries, Congress and federal regulators are asking how big is
too big. When the Conrail merger is complete -- as early as March 1 -- most
of the country's rail freight will be controlled by four huge systems that are
the product of numerous other mergers: Union Pacific and Burlington
Northern Santa Fe in the West, and Norfolk Southern and CSX in the East.

Norfolk Southern and CSX could hardly be more different in personality and
philosophy. Norfolk Southern has a reputation as a tightly run, highly
disciplined company. It's often called the "Nazis of Norfolk" by the union
officials who deal with it. CSX, on the other hand, is a loosely run railroad
that in some ways was never truly consolidated after the series of mergers
that created it in the 1970s and 1980s.

Even though Norfolk Southern is smaller (14,000 miles of track versus
CSX's 18,500), it has consistently outperformed CSX. Many railroad experts
assumed that Norfolk Southern would win the battle for the East after the
Conrail merger, which thrusts both companies into head-to-head competition
in New York, New Jersey and New England for the first time.

Now, with so many new CSX managers drawn from Conrail, no one is sure.

Conrail had one of the briefest histories of any major U.S. railroad. Created
by Congress from the broken-down Penn Central and other bankrupt
Eastern and Midwestern railroads in 1976, Conrail surpassed the wildest
dreams of its founders. It became so successful that CSX and Norfolk
Southern in 1997 engaged in a savage battle for the company, bidding up the
price to $10.2 billion before they agreed to split it.

Norfolk Southern and CSX then began a bidding war for the managers who
helped produce the Conrail miracle. CSX seems to have claimed many of
the top people, in large part because it needed fresh blood at the top. Norfolk
Southern could offer Conrail executives only mid-level positions.

Still, the fight for Conrail is taking its toll at Norfolk Southern and CSX.
"We're hearing that both Norfolk Southern and CSX are having trouble
maintaining the same quality of service as in the past," said Edward Emmett,
president of the National Industrial Transportation League, which represents
all major U.S. shippers.

Snow acknowledged he had become concerned about CSX operations. "It
was one of the areas [in which] we were not as strong as we ought to be,"
he said. "I think it's fair to say -- not in a reckless way -- that if we're going
to be successful, we have to become a new company."

Even as the two acquiring railroads have experienced service problems,
Norfolk Southern has maintained control of its bottom line while CSX
Transportation -- the railroad and CSX Corp.'s largest subsidiary -- saw its
earnings drop beginning in 1997, ending a 16-quarter string of
record-breaking profits.

Snow reportedly told colleagues that the railroad seemed to have lost its
momentum at just the wrong time. He became persuaded that CSX was
using the Conrail merger battle as an excuse for failure, industry sources
say, and the railroad needed an emotional jolt to get moving again.

Snow delivered two jolts in 1998, one in June and the other in October.

The first was the June 10 announcement that Ronald Conway, Conrail's
senior vice president of operations, would be CSX's new executive vice
president of operations, the man who is supposed to make the trains run on
time. He succeeded the retiring Carl N. Taylor. Six days later, Conrail
Senior Vice President Frank H. Nichols became CSX vice president for
employee relations, succeeding the retiring Donald Davis. Already at CSX
from Conrail was Gary M. Spiegel, the new vice president for network
operations, in charge of the customer-service and dispatching centers as well
as locomotive and crew management. Gerald T. Gates, who was Conrail's
vice president in charge of merger consolidation, also came to CSX earlier
as CSX vice president in charge of operations on former Conrail lines, and is
expected to move up in CSX.

Conway swept through the CSX operation like a giant broom. In his first five
days on the job, he sent a powerful signal that he would give field managers
far more responsibility for running the railroad, transferring responsibility for
track maintenance, signals and other engineering and mechanical duties to
local managers.

That lack of local control was a key factor in month-long disruptions to
Virginia Railway Express service after a freight-train accident in Arlington in
July 1997. Promises and reassurances from CSX's corridor manager in
Baltimore were repeatedly thwarted by decisions made -- or not made -- in
Jacksonville.

"We totally embrace Ron Conway's concepts," said David Snyder, VRE's
manager of railroad services. "We saw them at Conrail, and we welcome
them to CSX."

Snyder said Conway is already beginning to produce results, although "right
now it's a straw horse and it needs more meat on the bones." For example,
Snyder said, managers in the Baltimore-Washington area should control
commuter trains running in Virginia and Maryland. Now a dispatching center
in Jacksonville, 800 miles to the south, controls operations.

Conway said this power-to-the-field trend is just beginning. Among other
things, he said he is opposed to centralized dispatching centers such as the
Dufford Center in Jacksonville. He also intends to give local managers more
power over their budgets by introducing a new computer system that will
allow them to estimate how much revenue would be generated -- as well as
cost incurred -- by innovations. For instance, adding a new local freight train
might produce more revenue than it would cost.

"It allows us to play what-if games," Conway said. "We can ask, 'Did I make
it better or worse?' "

Industry sources said Conway is likely to be named president of CSX within
a few years. The current president, Alvin R. "Pete" Carpenter, whose
enthusiasm and cheerleading personality have engendered strong loyalties on
the CSX board and among some top CSX managers, is said to be
considering retirement within a couple of years, and Snow is said to have
told him that his presence is important until it is clear that the Conrail
acquisition is running smoothly.

"I'll certainly be around till that's [the Conrail transition] done well,"
Carpenter said last week. He said he also is dedicated to a new employee
relations program that involves a cultural shift in discipline policies and
management-employee communication, and "I want to see it a long way
down the road before I leave," he said.

Snow, while declining to discuss future personnel moves, said that in the
Conrail merger, "one of the great pluses for us is Ron and his operating
people. The windfall is, we got so many of them."

Snow's second jolt was a double-barreled October surprise.

First, corporate headquarters in Richmond took over CSX Transportation's
financial organization. All finance for both the corporation and the railroad
was consolidated under Paul R. Goodwin, the corporation's executive vice
president and chief financial officer.

In addition, the October announcement heralded the return of former CSX
official Aden Adams as vice president for marketing.

Adams, 59, has already engaged Norfolk Southern in a quiet rate war for
future chemical traffic in the East. That war became so bloody that sources
in both railroads say the cost of the merger in lost revenue -- put at $87
million in their merger filings -- has already doubled and may triple. Sources
on both railroads said cooler heads prevailed before the war spread beyond chemicals.

One of the most important battles the new CSX faces is for the crucial
intermodal business -- the transport of truck trailers or marine containers
carried on flatcars. In charge of this business, which generated $669 million
in revenue for the company in 1997, is another Conrail veteran, Lester Passa.

Arriving in May 1997, Passa helped plan the merger and then was given one
of the toughest jobs at the company -- to persuade a railroad built on hauling
coal and other low-speed bulk products that it must provide high-speed,
on-time service in order to compete with trucks. His former company,
Conrail, is recognized as a leader at this.

"There's a mindset shift that's going on here," Passa said.

That difficult shift still pales in comparison to what is perhaps the most
ambitious of CSX's projects -- changing an internal culture of intimidation.
Jim Schultz, a former Federal Railroad Administration official, is charged
with ending 150 years of militaristic railroad discipline. Schultz calls his plan
"the new compact with employees."

Some of the new compact was quickly obvious, such as the popular
company-wide full-time casual dress policy, designed to lessen the
us-versus-them tone of bosses in suits and workers in jeans.

But the heart of the compact is far more difficult -- changing a punitive
disciplinary system in which employees are subjected to "investigations" for
rule infractions and sometimes suspended or fired, often getting their jobs
back in union arbitration.

"We've got a culture rooted in the 19th century," Schultz said.

In cooperation with the United Transportation Union and the Brotherhood of
Locomotive Engineers, Schultz and CSX management wrote a new
discipline policy that concentrates on non-punitive solutions. Minor offenses
and serious first-time rules violations, even normally unforgivable offenses
such as drinking on the job, are handled by incident review committees and
"time out" sessions during which employees receive counseling and usually
must give speeches to fellow employees about their experience.

Only after repeated serious offenses or a particularly egregious rules
violation is an employee brought up on a formal investigation.

Federal safety officials are cautiously optimistic about the plan while many
union officials are reacting with borderline enthusiasm.

"Overall, what's happening on CSX is a very good trend," said Robert Lauby,
head of the railroad safety division of the National Transportation Safety
Board. But he warned that "if leniency gets in the way of safety, then they'll
need to take a second look."

James Brunkenhoeffer, legislative director of the United Transportation
Union, called the CSX program "exciting." Already, he said, he has heard
reports of train crews making extra efforts to give good service to freight
shippers because they think management may actually care about both the
workers and their customers.

Carpenter, at the top of the railroad, has been an enthusiastic supporter.

"I don't think this will be an easy thing to do," said Carpenter, a former
brakeman himself. But he said a cultural change is necessary because the
railroad cannot provide the kind of service it must provide with "a dispirited
work force."

The man running railroad operations, Conway, said the new program is a key
part of the rehabilitation of CSX.

"This is not the flavor of the month," Conway said. "It isn't going away."

Officials of other railroads, Wall Street analysts and other insiders say they
are generally encouraged by the changes taking place at CSX, although they
express some skepticism about a railroad that seems to undergo a
reorganization every few years.

"The question is, can they stick with it this time?" said a top official at
another railroad, who did not want to be named.

Most people agreed that this reorganization is different from previous ones.
In fact, in some ways it is a reversal of reorganizations in which the
company tried to stop acting like a railroad and instead be a full-service
world transportation conglomerate with a railroad, a ship line, a barge line
and logistics services. Along the way, some of the operating and service
systems that were layered on the railroad simply created confusion.

The nascent changes are impressing some veteran railroad watchers.
Anthony Hatch, a longtime analyst, and Jim Valentine of Morgan Stanley
Dean Witter said in separate interviews that CSX is getting back to the
fundamentals of railroading, when steam locomotives and early-century
technology often produced faster and better service than today.

Valentine said the transition will be painful, partly because CSX and all
railroads must stop thinking in terms of cost-cutting, and instead concentrate
on service and long-term growth.

Hatch, calling the new changes "a radical event in this corporate history,"
said it is too early to tell if CSX will be successful, but it is plain where the
railroad is headed.

"Clearly they felt the history of this company once again would be written as
a railroad," Hatch said.

"They're trying to get back to the old days," Valentine said.



CRTS Update #12-39
Friday, December 25th, 1998 at 13:40 EST


CSX allowed to end Conrail, NS contract

BY RIP WATSON
JOURNAL OF COMMERCE STAFF

WASHINGTON -- The Surface Transportation Board is
allowing a CSX Corp. intermodal subsidiary to
nullify rail contracts with Conrail Inc. and
Norfolk Southern Corp. when CSX and NS take over
their portions of Conrail early next year.

The contracts cover rail service between Chicago
and the New York area. The agreements divided up
rail service arranged by CSX Intermodal Inc.
between an all-Conrail routing and a combination of
Norfolk Southern service between Chicago and
Buffalo and service by New York, Susquehanna and
Western Railroad between Buffalo and the New York
area.

CSX Intermodal, which arranges for rail intermodal
services over CSX Transportation and other
railroads, faced the prospect of having those
contracts continued after CSX and NS assumed
control of their portions of Conrail assets. The
STB said specifically that the CSXI contracts must
remain in force until "Day One," the undetermined
date when Conrail assets are divided by their
purchasers.

When NS and CSX sought STB approval to acquire
Conrail, the companies promised to create new
competition for intermodal service in markets such
as Chicago-New York that are dominated today by
Conrail.

The STB's decision to approve the application
required the acquiring companies to renegotiate
existing Conrail contracts six months after NS and
CSX actually took over their portions of Conrail at
the customer's request.

CSX filed a petition earlier this month asking that
the CSX Intermodal contracts be overriden
immediately after Conrail assets are divided. CSX
contended that the prospect of having NS handle
some CSX Intermodal traffic under contract after
the Conrail division would weaken the competition
that both carriers wanted to provide and that the
STB encouraged.

NS replied with a proposal that any action to
adjust the terms of the CSX Intermodal contracts
should be accompanied by similar action to change
contracts between Conrail and APL Ltd. because APL
offers a double-stack train service that is similar
to CSX Intermodal.

APL had pressed during the Conrail acquisition
review process for release from a contract signed
with Conrail that was to run until 2004.

The STB rejected the NS request to override the APL
contracts, saying that was overreaching, though it
left NS the option to petition for relief if
problems developed out of a dispute between NS and
CSX over the future use of an APL facility in
northern New Jersey.



CRTS Update #12-38
Friday, December 25th, 1998 at 13:30 EST


STB clears CP to begin rail service to New York
City

After being fought by CSX, the Canadian railroad
will get access to railyards in several of the
city's boroughs

BY RIP WATSON

WASHINGTON -- The Surface Transportation Board has
cleared Canadian Pacific Railway to begin service
to New York City after the division of Conrail Inc.
assets between Norfolk Southern Corp. and CSX Corp.
early next year.

The decision establishes the terms for re-creating
rail service to the city lost after Conrail was
created. New York state and local officials had
pressed for restoration of rail-to-rail competition
when NS and CSX took over Conrail because much of
New Jersey would be regaining two-railroad service
as a result of that transaction.

The board had directed CSX, which will inherit
Conrail's lines in New York City and the east side
of the Hudson River, to negotiate terms of trackage
rights that were given to CP as a condition of the
STB's approval of the transaction.

CP and CSX failed to reach a negotiated settlement,
prompting the board to step in and set terms
allowing CP to provide service between the Albany,
N.Y., area and New York City. The board agreed with
CSX and rejected the Canadian carrier's request to
serve intermediate points between those two cities.

But the STB allowed Canadian Pacific a wider area
of service within the Bronx and Queens, including
access to all railyards in those boroughs of New
York City. In earlier proceedings, CSX fought CP's
efforts to serve all New York City terminals.

However, CSX and CP later agreed on a plan to let
the Canadian line serve a produce market at Hunts
Point, two other railyards in the Bronx and a
terminal in Queens for a connection with the New
York & Atlantic Railroad, a freight carrier that
serves Long Island. The decision also resolved
differences between CP and CSX over terms for using
the Albany-New York line. The STB set a
$250-per-car switching fee that CSX could charge to
move CP's traffic to and from local customers.

The board adopted a higher rate of track use
charges than CP requested, but the agency said the
additional cost of $30 a car should not discourage
CP from using the new rights.

In a related matter, the STB rejected a request by
the Providence & Worcester Railroad to have a
special judge settle questions of the service
rights the P&W was given between New Haven, Conn.,
and New York as part of the Conrail decision. The
board directed P&W to continue negotiating terms
with CSX, which is inheriting the Conrail line
between those two communities.

The board also turned aside a request from the
Housatonic Railroad, which was seeking rights to
connect with Canadian Pacific after that railroad
established service between Albany and New York.



CRTS Update #11-54
Sunday, November 24th, 1998 at 10:40 EST


Norfolk Southern agrees to back CN-IC merger
BY RIP WATSON

The number of carriers opposing the proposed merger
of Canadian National Railway Co. and Illinois
Central Corp. was whittled down to two after a
settlement agreement was reached with Norfolk
Southern Corp.

That leaves Union Pacific Railroad and Canadian
Pacific Railway as the only railroads still
opposed. CN and IC previously reached agreements
with CSX Transportation and Burlington Northern and
Santa Fe Railway.

Details of the latest settlement remain
confidential. But it was understood that the terms
satisfied NS concerns about post-merger service
levels and rail line capacity on tracks in four
areas where NS routes meet those owned by IC and
Kansas City Southern Railway.

KCS signed a 15-year marketing deal with the merger
applicants earlier this year.

NS feared that CN and IC's application allowed for
less than $1 million in capital spending for
mainline route improvements, even though the
companies and KCS expected to boost revenue by 7%
from new business.

After NS and CSX spent $10 billion to acquire
Conrail Inc. last year, they promised to spend
close to $1 billion on route expansion projects.

NS also sought assurances of non-discriminatory
handling of its traffic and a commitment to meet
negotiated standards of service, track maintenance
and capital improvement projects.

NS focused its concerns on a route between Chicago
and Gibson City, Ill., that IC owns and NS uses
through trackage rights. NS also voiced concern
about Springfield, Ill., and Tolono, Ill., where
existing NS and IC routes converge.

The fourth line is a KCS route between Texas and an
NS interchange at Meridian, Miss.

"NS is satisfied that the parties' settlement
agreement fully and adequately addresses the
concerns. Such issues are best resolved by the
parties themselves," NS Chairman David Goode said.

UP's wants CN-IC to refile their plan because UP
contends the marketing alliance with KCS creates a
practical three-way merger with just two
applicants.

CP wants CN to sell its half-interest in a rail
tunnel between Detroit and Windsor, Ontario 50%
owned by CP.

CP maintains that CN won't increase clearances in
the Detroit-Windsor Tunnel because it wants to
remain the only company to handle full-sized
double-stack trains and the newest generation of
automotive equipment through a second, CN-owned,
tunnel between Sarnia, Ontario, and Port Huron,
Mich.

A handful of shippers in Geismar, La., and other
parts of the state are also concerned. They say the
three-way marketing alliance will not deliver on
promised future competition for chemical traffic.

Several shippers want to be included in a plan that
would create new competition for three shippers in
Geismar through haulage rights that Illinois
Central would grant to KCS in the area.



CRTS Update #11-49
Saturday, November 21st, 1998 at 18:45 EST


Subject: Conrail 1998 Thanksgiving Holiday

In order to provide you with advance information regarding Conrail's 1998
Thanksgiving Holiday Operating plan, the following service plan will be
followed over the Holiday period for the CORE Service Network.

Road Operation:

Through Freight Trains will not operate from 9:00 P.M. Wednesday November
25th through 9:00 P.M. Friday November 27th.

Classification Yard Operation:

The major classification yards will be shut down as outlined below:

Oak Island NJ - 7:00 A.M. Thur 11/26 through 7:00 A.M. Sun 11/29

Allentown PA - 7:00 A.M. Thur 11/26 through 7:00 A.M. Sun 11/29

Selkirk NY - 3:00 P.M. Thur 11/26 through 7:00 A.M. Sat 11/28

Frontier NY - 3:00 P.M. Thur 11/26 through 7:00 A.M. Fri 11/27

And
- 3:00 P.M. Fri 11/27 through 7:00 A.M. Sat 11/28


Conway PA - 7:00 A.M. Thur 11/26 through 7:00 A.M. Sat 11/28

Elkhart IN - 3:00 P.M. Thur 11/26 through 3:00 P.M. Fri 11/27

And
- 11:00 P.M. Fri 11/27 through 7:00 A.M. Sat 11/28


Stanley OH - 11:00 P.M. Wed 11/25 through 7:00 A.M. Sat 11/28

Big Four IN - 11:00 P.M. Wed 11/25 through 3:00 P.M. Fri 11/27

Buckeye OH - 11:00 P.M. Wed 11/25 through 3:00 P.M. Fri 11/27

Local Industrial Service:

As a general rule, Local service will be shut down Thursday November 26th
through Sunday November 29th except where customer requirements dictate that
service be provided. Please contact Conrail local Transportation personnel if
you require local service during this period.

Computer system changes:
Over the Thanksgiving weekend, Conrail will realign station assignments
within its computer system. These changes will be transparent to our customers
and will not affect your current operations or customer service procedures.



CRTS Update #11-48
Saturday, November 21st, 1998 at 18:35 EST


Golden Spike Marks Completion Of Major Rail Project
Creates World-Class Transportation Link To The Northeast

WILLOW CREEK, Ind., Nov. 20th, 1998 -- With the pounding of a golden
spike and the joining of two locomotives, CSX Transportation Inc. (CSXT)
today announced the grand opening of its $220-million capacity expansion
project, described as one of the most ambitious U.S. rail freight development
projects in modern times.

CSXT and state officials drove the golden spike, symbolizing the
completion of the project that links the former B&O rail line to Conrail's
Water Level route into the Northeast. Two locomotives -- one CSXT and one
Conrail -- then met nose to nose signifying the joining of the two railroads.

The expansion effort will create a world-class transportation link
connecting local communities throughout northern Indiana and northern Ohio
with major consumption markets in the Northeast. The massive construction
project establishes an expanded high-capacity, double-track route between
Chicago and the East Coast, CSXT President and Chief Executive Officer A. R.
"Pete" Carpenter said.

"The enhancements we have made along this key rail line have created the
most direct route from New England and mid-Atlantic coast ports and industrial
centers of the Midwest," said Carpenter. "The result will be dramatically
improved service and vastly increased capacity across the entire line."

CSXT continues to work closely with state and local economic development
officials in attracting new business to Indiana and Ohio.

"A first-class railroad running from Cleveland to Chicago will prove to be a major
selling point to prospective industries that require high quality transportation service,"
Carpenter said.

Throughout the region, more than 100 route miles of new track were
constructed and another 250 route miles of existing track were reconstructed
and upgraded. The project included installation of crossover tracks and
signaling systems that allow reverse operation over all rail lines. In
addition, more than a dozen new connecting tracks were installed to smooth
traffic flows on the CSXT system and to facilitate interchange of traffic with
short line railroads, regional rail carriers and other railroads serving the region.

The Chicago-to-Greenwich upgrade is part of a $500 million capital
improvement program CSXT is planning over and above its regular capital
spending to smoothly integrate roughly half of the Conrail rail system into
its own. CSX, along with Norfolk Southern Corporation, is jointly acquiring Conrail.

Today's event is reminiscent of the original Golden Spike ceremony that
took place at Promontory, Utah, on May 10, 1869, marking the meeting site of
the Union Pacific Railroad and the Central Pacific Railroad to form North
America's first transcontinental railroad.

CSXT and its 28,000 employees provide rail transportation and distribution
services over an 18,300 route-mile network in 20 states, the District of
Columbia and Ontario, Canada. CSXT is a business unit of CSX Corporation
(NYSE: CSX), headquartered in Richmond, Virginia.

B&O Capacity Improvement Project Fast Facts
Total Investment: $220 million
Project Scope: 270 miles, from Greenwich, OH, to East Gary, IN
Duration of Core Project: 18 months, from April 1997 to October 1998
Official In-Service Date: November 4th, 1998
New Track: 130 miles, including 100 miles of new double track, with the
remainder in yard tracks and new third main
Signal System Upgrade: 250 bi-directional trackside signals with Harmon
Electro-code vital circuits and wireless radiocode to control points
New Mainline Crossovers: 78
Set-off Tracks: 20
New Connections to Conrail Lines: 2, at Greenwich, OH; and Willow Creek, IN
Highway Crossing Consolidations: 15
Pole Line Replaced: 270 miles
Track Ballast Used: 600,000 tons
Speeds: Before upgrade: passenger, 69 MPH; freight, 59 MPH
After upgrade: passenger, 69 MPH; freight, 69 MPH
Local Purchases: Indiana, $8.4 million Ohio, $5 million



CRTS Update #11-47
Saturday, November 21st, 1998 at 18:30 EST


Norfolk Southern Implementation Update: November 20, 1998


Notable

Norfolk Southern has taken the initial legal steps necessary to
establish March 1, 1999, as the Conrail transaction "Closing Date" -
the date on which NS would begin operating a significant portion of the
routes and assets of Conrail.

Norfolk Southern's latest 10Q statement, a financial document
filed this week with the Securities and Exchange Commission, included
the following statement with regard to the Conrail transaction:

"NS will begin providing rail freight services on portions of
Conrail's route system after the Closing Date. Closing now is expected
to occur in the first quarter of 1999. NS personnel are making plans on
the basis of a March 1 Closing Date. However, closing continues to be
subject to a number of contingencies, including attainment of necessary
labor implementing agreements and a determination that all necessary
systems are in place and that implementation can be accomplished safely
and with a minimum of service disruptions, any one of which might
postpone the Closing Date and the realization of benefits NS expects to
derive from the transaction."

David R. Goode, NS chairman, president and chief executive
officer, said the date is based on information currently available
"and the progress our employees have made to date to assure a safe,
successful transition.

"The announcement gives me the opportunity to thank both Norfolk
Southern and Conrail employees once again for your hard work and
dedication to the Conrail implementation effort during the past two
years," said Goode. "While it has been a time of uncertainty and
challenge for all of us, your efforts have positioned Norfolk Southern
for a future of growth and prosperity.

"I am especially proud of the teamwork our employees have
demonstrated both internally and with their counterparts at Conrail and
CSX. Continued teamwork and attention to every detail of the
implementation will be necessary to ensure that we deliver to our
customers, investors and communities as well as ourselves the full
benefits of the Conrail transaction that we promised - safe and
competitive rail service without disruptions.

"The Conrail transaction provides Norfolk Southern the
opportunity, as never before, to realize our vision to be the safest,
most customer focused and successful transportation company in the
world. I am confident that we will be ready by March 1, and I want to
assure you that when we proceed, we will do so safely and with proper
service. I know that I can count on you and our colleagues joining us
from Conrail to make implementation of the Conrail transaction a
complete success of which we all will be proud."

Norfolk Southern will serve 1,946 new stations after it begins
operating a portion of the routes and assets of Conrail. A database
listing of those stations and the accounting code numbers identifying
them for waybill purposes - officially known as an industry reference
file - was released to the Association of American Railroads this week.
"Release of the industry reference file is a key step in bringing
about smooth implementation of the Conrail transaction," said Sarah
Corey, director, Norfolk. "This is important because on Day One,
Conrail will no longer show up on new waybills. The industry reference
file enables the AAR to notify all carriers about the new NS stations
so that accurate waybills can be produced for interline movements to
new Northeast points served by NS."

Identifying the new stations and assigning each a distinct number
was a mammoth effort involving the Transportation, Accounting,
Marketing and Information Technology departments on NS, working
together on the Conrail implementation Customer Billing Team. The team
worked closely with representatives of Conrail and CSX, which also
released an industry reference file for the new stations on the portion
of Conrail it will operate. On NS, the effort was led by Alan Brune,
manager Waybill Processing, Revenue Accounting Support Services,
Atlanta. "It has been an ongoing process since early last year to get
everything to this point," said Brune.

Programming of computer systems necessary for Closing to occur is
nearing completion, according to Cindy Earhart, assistant vice
president Information Systems for NS. Scheduled to begin next month is
integration testing of programs to assure that computer applications
supporting primary business areas will function properly with new
Conrail data.

Final testing will be designed to make sure that NS and Conrail systems
are compatible and that systems are sufficiently robust to handle the
additional volumes of data. "The success we've had integrating the
computer systems is a result of the people involved both in the
business areas and in Information Technology on NS and at Conrail,"
said Earhart.

Concurrent with IT testing of programs, internal business process
testing is under way by the Conrail teams. The business process testing
effort will establish structured criteria to evaluate the functionality
and robustness of "critical to Close" business processes. The result
will provide NS teams and executive management with an objective view
of the key operational risks associated with Closing.


Quotable

"With the pending operation of major portions of Conrail, we have
accelerated our new capacity investments. We plan to divert substantial
traffic from the highway, but we cannot do so without more capacity. We
have committed a half billion dollars to infrastructure expansion
because of Conrail and the expected increases in our own traffic. It is
the railroad version of, 'Build it and they will come.'" - Jim
McClellan, NS senior vice president Planning, to a seminar sponsored by
Railway Age magazine Nov. 10, Washington, D.C.


Conrail Heritage

The employees of Conrail come from a background as diverse as its
many predecessor lines. Conrail employees originated from some 20
different railroads. The greatest number of employees with prior
service on a predecessor line - more than 8,000 - originated with the
Pennsylvania Railroad, while a single current employee had prior
service on the Lehigh & Hudson River.

Here are some Conrail predecessor lines and the number of present
Conrail employees who once worked for them:


        Pennsylvania Railroad                8,533
        New York Central                     2,398
        Erie Lackawanna                      1,243
        Reading                                630
        Lehigh Valley                          400
        Monongahela Railway Company            158
        Central of New Jersey                  146
        Indiana Harbor Belt                     97
        Penn Central                            82
        Merchants Despatch                      50
        Pennsylvania Reading Seashore Line      43
        Chicago River & Indiana                 25
        Akron Barberton Belt                    15
        Detroit Terminal                        10
        New York & Long Branch                   7
        Dayton Union                             4
        Cleveland Union Terminal                 2
        Penn Truck Lines                         3
        Lehigh & Hudson River                    1



Norfolk Southern Heritage

Henry Huttleston Rogers, sole financier of the Virginian Railway,
a Norfolk Southern predecessor line, had quite a list of famous
friends. Mr. Rogers was an intimate friend of Samuel L. Clemens, also
known as "Mark Twain," the author. Rogers helped Clemens out of
financial debt and made such sound investments for him that Clemens
accumulated a fortune.

Through Clemens, Rogers met Helen Keller. Rogers supplied the
money for her education and befriended her throughout the rest of his
life. Keller had a high opinion of the railroader: "He had the
imagination of, the vision and the heart of a great man, and I count it
one of the most precious privileges of my life to have had him for my
friend."

Due to the Thanksgiving holidays, Implementation Update will not
be issued next week.



CRTS Update #11-45
Thursday, November 19th, 1998 at 21:45 EST


CSXT'S GOLDEN SPIKE CEREMONY:

On Friday, November 20th, 1998 at 11:00 CST, CSXT will celebrate the
completion of its major double track project with a "Golden Spike"
ceremony at Portage, Indiana. It will held in the gravel area at Willow
Creek Road, across the railroad tracks from
Woodland Park. The event will include celebration of pounding in the
last spike symbolically connecting CSX and Conrail. The ceremony will
feature CSX and Conrail locomotives as a backdrop in the pounding of the
"Golden Spike." The railroad will also recognize employees who played a
significant role in completing the project, one of the larget rail
construction projects in the last 50 years.

Information courtesy of: Carl G. Perelman



CRTS Update #11-41
Thursday, November 19th, 1998 at 12:45 EST


CENTRAL OHIO TRACKWORK UPDATE:

Norfolk Southern is aggressively working on their new connection at
Weber Road in Columbus, OH. This where the Columbus Line connects to
Norfolk Southern's Portsmouth, OH to Bellevue, OH main. The other
connection at CP-Colson where the same Norfolk Southern main connects to
the Fort Wayne Line is also being built. The connection at Sidney, OH
connecting the CSXT Cincinnati, OH to Deshler, OH main with the
Indianapolis Line is done and has been for over a month and as of yet it
hasn't been used. At Marion, OH they have started building the
connection which will put a 30 MPH connector joining the Indianapolis
Line northeast to the CSXT Columbus, OH to Toledo, OH main. This line
connects to CSXT's east-west former B&O main at Fostoria, OH. At CP-75
in Crestline, OH, new crossovers have been installed north of the
current plant and they are preparing to move the diamond south to allow
a connection from the Indianapolis Line to the Fort Wayne Line in an
southhwest direction.



CRTS Update #11-40
Thursday, November 19th, 1998 at 12:30 EST


SYRCUSE, NY INTERMODAL CENTER:

Amtrak Train #284, the Niagara Falls-New York early morning train
became the first train to use the new Syracuse Intemodal Center on
Tuesday, November 17th, 1998. According to a bulletin order that Conrail
put out, the station is located at milepost 291.4 and served by Track 7,
the southerly of the three tracks in service between new interlocking
CP-290 located at milepost 290.5 and CP-291 located at milepost 291.5.
The following instructions have been issued; excessive dimension cars
must not be operated through the new station on account of close
clearance due to the high level platform.



CRTS Update #11-38
Thursday, November 19th, 1998 at 11:15 EST


NORFOLK SOUTHERN AND NY CROSS HARBOR SIGN AGREEMENT

NEW YORK, Nov. 16th, 1998-- A new rail freight handling agreement was
announced today
between the New York Cross Harbor Railroad (NYCH) operating subsidiary
of the New York
Regional Rail Corporation (OTC Bulletin Board: NYRR) and Norfolk
Southern Railway Company. Under the agreement, Cross Harbor and Norfolk
Southern will work cooperatively to promote the smooth, streamlined flow
of inbound and outbound rail traffic for the New York/New Jersey
metropolitan area, the country's largest consumer market.

"We are delighted to have consummated this important partnership between
our two railroads," said W. Robert Bentley, Vice President of NYRR, and
President of the NY Cross Harbor Railroad. "We believe it will have an
enormous impact on the continued revitalization and economic growth of
the Brooklyn Waterfront and the greater New York metro region." NYCH
will have the capacity to serve Norfolk Southern through the northern
New Jersey Shared Assets Area that is to be operated by Conrail.

"It is our strong sense that, as a result of the Conrail transaction, we
can anticipate a substantial increase in business, both in the near term
and for the sustainable future," said Mr. Bentley. "At the same time, we
will continue our efforts to upgrade and rehabilitate our physical
plant, in order to handle these heightened flows."

The only rail freight marine operation in the Northeast, NYRR's New York Cross
Harbor Railroad transports rail cars via tug-propelled car floats between its
Greenville Yard in Jersey City, N.J. and the Brooklyn Waterfront. The
system takes 35-45 minutes to cross the Harbor and 20 minutes for
loading or unloading on either side, creating a direct conduit for
freight to reach the New York City and Long Island Marketplace.

Norfolk Southern Corporation, a Virginia-based holding company with
headquarters in
Norfolk, owns a major freight railroad, Norfolk Southern Railway
Company. The Surface,Transportation Board (STB) decision of July 23 permits Norfolk
Southern to operate about 7,200 miles of Conrail routes, creating a
21,600-mile rail system serving 22 states in the east, as well as the
District of Columbia and the Province of Ontario.



CRTS Update #11-37
Thursday, November 19th, 1998 at 11:00 EST


Norfolk Southern on Passenger Trains
Remarks by: James W. McClellan
Senior Vice President - Strategic Planning
Norfolk Southern Corporation
Before the: Railway Age Seminar
Washington, DC: November 10, 1998

Passenger Trains on Freight Railroads

Good afternoon. The "New" Norfolk Southern really is new. Did you ever expect
to see a luncheon co-sponsored by NS and
Amtrak? It really is the "New" Norfolk Southern. Freight, commuter and
passenger services have pretty much gone their separate ways. We
usually have different customers, different sources of funding,
different goals and different time horizons.

But most of the time, we do not have different tracks. Usually a
freight carrier owns those tracks. But sometimes that role is reversed,
as NS is learning as it gets ready to acquire its part of Conrail.

And we share a common problem; the available infrastructure is filling
up. And that fact will bring changes in how freight and passenger
carriers deal with each other in the future. Life is going to get
harder for all of us. Just how hard probably depends on how well we
learn to work together.

When I was in the passenger business, the assumption was that there was
plenty of capacity to do anything anyone wanted to do. After all, the
freight business was static or declining and railroads were often
busily engaged in downsizing the physical plant to fit the available
traffic.

Things are totally different today. Continued growth is the order of
the day.

Except for the origin point of the western coal, most of the growth has
occurred along a limited number of already highly used mainline
corridors. Railroads are increasingly focused on consumer goods
products such as automobiles and appliances, UPS packages and
California wine. The traffic is destined to the major urban centers. So
while there are still a lot of tracks out there with only a few trains
a day, those are not the lines where the freight traffic wants to be.
Nor where the passenger trains want to run.

At Norfolk Southern, we have been dealing with capacity issues for over
a decade. Even as we were downsizing in the late 1980's, and even while
traffic was static, we were railbanking certain key parallel mainlines
and by-pass routes. And we did so at our own expense.

It was a good thing that we started to reverse direction when we did,
because NS's ton-miles surged 25% between 1990 and 1997. And train
miles, reflecting the strong emphasis on automotive and intermodal
traffic, rose even faster with an increase of 35%. In response to this
growth, NS took a number of further actions:


* We negotiated trackage rights on other carriers to avoid bottlenecks
on our own route. For example, we acquired trackage rights over Conrail
between Columbus and Cincinnati to relieve pressure on our own line.

* We invested in additional sidings. We built a new mainline through
Cincinnati. And we bought surplus lines of other carriers, including
the Conrail line between Gary, IN and Ft. Wayne and the Illinois
Central line between Fulton, KY and Corinth, TN. These were costly, but
we thought they were necessary to protect our future.

* With the pending operation of major portions of Conrail, we have
accelerated our new capacity investments. We plan to divert substantial
traffic from the highway but we cannot do so without more capacity. We
have committed a half billion dollars to infrastructure expansion
because of Conrail and the expected increases in our own traffic. It is
the railroad version of "build it and they will come."


Our investments include new connections so that the NS and CR systems
are integrated, thus providing us with multiple paths through the
network. We are adding sidings to a number of core routes.

And we are even reestablishing routes that have been largely dormant
for decades. For example, the west end of the Southern Tier line is
getting investment. So is the Delaware and Hudson between Sunbury, PA
and Albany, NY. The D&H upgrade is a joint project with Canadian Pacific
and will allow us to keep north-south freight away from the most heavily
populated urban centers.

And, I would note, CSX is making similar capacity commitments. When all
the projects are done next year, Eastern railroads will see the
greatest expansion of freight capacity since before the depression.

Western railroads are also engaged in massive capacity enhancing
projects. The BNSF has reopened Stampede Pass and is double tracking
its freight line through Texas and Oklahoma. UP is actually triple
tracking its mainline through Nebraska to handle an unprecedented 160
trains per day.

There is no denying that we have had capacity problems. But there is
also no denying that the industry is trying to do something about that
fact and is spending billions of dollars in the process.

So when all of this investment has been completed, there will be plenty
of capacity in the network, right?

That is not the way I see things. Certainly, the immediate problems
will be rectified, but as traffic continues to grow, adding capacity
will become a way of life for freight railroads.

But do not expect a lot of surplus capacity in the system. Our
customers want reliable service but are not willing to pay much for
redundancy. So our challenge is to provide the right amount of
capacity. If we aim too low, congestion will result. But if we aim too
high, we will be stuck with extra costs for which no one is willing to
pay.

So what does this mean for passenger trains using freight railroads, or
freight trains using passenger railroads in those instances where roles
are reversed? Here are some thoughts as they pertain to Norfolk
Southern.


* We will all have to do a lot more planning for the future. Passenger
providers can no longer automatically assume that there will be
capacity to put more trains on the NS any more than, for example, NS
can assume that Amtrak will accommodate more freight trains on the
Northeast Corridor.

* If you are planning on additional services, please start those
discussions with the freight railroad before too many promises have
been made to your various political constituencies. In most instances
NS will be able to accommodate new services, in some cases we will not.

* No one should assume that today's underutilized corridors will be
underutilized in the future. Like BNSF, we are taking a long-term view
of our needs and will be protective of tracks, and land that we think
we will need in the future. It is best we have discussion before your
plans go public.

* It will take longer to get new services on line and it will cost more
up front. The reason is simple: with many parts of the system at or
near capacity, adding new passenger services means that facility
improvements have to be added before the service begins. The demands on
our operating folks are so intense that we simply cannot keep adding
traffic without first adding the tools to move that traffic.


Norfolk Southern, even the new expanded Norfolk Southern, is largely a
single-track railroad. It always has been. So we are asking a lot of
our operating folks when we demand that they keep all the hot freight
moving on time to find time for maintenance. Adding passenger trains to
the mix without the infrastructure to handle it is often "a bridge too
far."


* In all cases, what are we able to do will be very much route
specific. Some places, such as Atlanta, GA and Cleveland, OH are highly
congested. Some areas, such as our line between Alexandria, VA and
Manassas, VA have capacity.

* Expect us to say "no" to some new projects. The Union Pacific
situation has been a real wake-up call for our customers, our investors
and our regulators. They are pressing NS to make certain that we don't
get caught short. At NS, our first goal is, and must be, to move
freight safely and efficiently. So we will be increasingly protective
of our ability to meet that goal, even if it means saying "no" to some
passenger initiatives.

* High-speed rail passenger services will be a challenge, at least if
NS lines are involved. We will be tenants on the Northeast Corridor,
and we are finding that passenger requirements impose a severe
restriction on when we can operate freight trains. We do not think that
high-speed trains are compatible with our freight operations on most of
our high volume freight corridors. The operational difficulties will
essentially undermine our freight service capabilities. Obviously, that
is not good for NS or freight transportation overall.


Let me conclude so we can have time for questions. Growth is good for
the railroad industry. It makes trains, whether passenger or freight,
more relevant to our economy. But it will be a challenge for all of us
to work in the new environment of continued growth. Planning will be
essential. Dialogue will be critical; we must all realistically access
what can be achieved and what may not be possible.



CRTS Update #11-36
Thursday, November 19th, 1998 at 10:35 EST


ROADRAILER CHANGE:

Conrail will end Roadrailer service from Rochester NY on Friday,
November 20th, 1998. The last train to operate will be train RR-231-20,
which will take all remaining Roadrailers from the Triple-Crown
facility. All future business will be trucked to Toronto, Ontario to be
handled by current Roadrailer trains operating on the Canadian Pacific.



CRTS Update #11-35
Thursday, November at 10:15 EST


Railroads to offer weekly service updates
AAR's three-step program aims to boost communications with shippers
BY RIP WATSON

Major railroads have cooked up a three-ingredient
stew to tickle their shippers' taste buds.

Acting through the Association of American
Railroads, major U.S. carriers will provide weekly
snapshots of performance and act to improve
interline train management and customer service.

Those steps were the product of five regional
meetings with hundreds of customers.

The meetings were organized earlier this year after
widespread criticism of service performance over
the past 12 months left many customers seething and
some shippers calling for fundamental regulatory
change. The sessions began three months ago in
Chicago and ended last week in Portland, Ore.

"We listened. We have proven to the customer base
that communication is a good idea," AAR President
Edward Hamberger said during an interview in which
he discussed the carriers' initiatives.

Opening communications

"By having our operations, marketing and customer
service representatives at the meetings, we came
out of them with a list of 'to-dos.' Several of
them will improve service in the long run and
certainly will improve communication."

Railroads could reap another long-term benefit.

As they gear up for an expected legislative battle
next year over industry regulation and pricing
policies, the outreach meetings can illustrate for
Congress that carriers --whose customer
friendliness has been doubted by many shippers --
are now committed to a proactive approach.

"This (process) was helpful for its own sake," Mr.
Hamberger said. "Those who are pushing for changes
in the regulatory system are doing so because of a
perceived lack of service in the hope that prices
could be lowered.

Renewed commitment

"We would hope that a commitment to communication
and service leads to a customer base that is
satisfied and gives us more business. People won't
give you more business unless you improve service."

Mr. Hamberger said customers told AAR members that
they preferred raw data about service performance
over an index.

But some customers say there won't be accurate
benchmarks for judging performance. Privately, they
have voiced fears that an index would be based on
last year's subpar service performance. Using one
of the industry's worst years would assure a
statistical improvement that might not reflect the
actual service quality in more normal years, such
as 1996.

Mr. Hamberger said the AAR will begin publishing
four weekly reports in January.

It will detail:

Freight car inventory, which is intended to measure
whether equipment is flowing freely or not.

Average train speed.

Car "dwell time" to illustrate how efficiently
railroads switch equipment from one train to
another.

Bill of lading accuracy.

The inventory will list how much equipment is on
each AAR-member railroad, and who owns it.

Average train speed will be shown for each railroad
by type of train, such as coal, grain, intermodal
or general merchandise.

Car-switching efficiency will be listed for more
than 50 key railyards nationwide.

The billing accuracy report will indicate the
number of shipments moving without proper
information.

Asked how that data could be analyzed without
benchmarks, Mr. Hamberger said, "This is supposed
to give an overview of how the railroad is
performing as an indication of relative health.
Over time, this will develop historical
performance.

"There will be a trend line. We are not going to
put out a standard saying that average dwell time
should be X," he said.

Still some benefits

Even without benchmarks, Mr. Hamberger maintained
that there was some benefit because the weekly
performance report process forced a standardization
of those measurements that carriers have been
measuring differently until now.

For example, carrier A may show in its records that
a shipment has not been forwarded to carrier B even
though company B has already listed the carload as
ready for departure on one of its trains.

Mr. Hamberger said carriers emerged from the
meetings with a commitment to improve that
interline service process, not only for their
internal operations but also for the customer. AAR
members also will be trying to identify new ways to
improve customer service procedures when there are
delays, Mr. Hamberger said.

Making practices better

That effort will include evaluation of a "best
practices" approach that could establish more
consistent problem-solving procedures at each
carrier and similar organizational structure.

Mr. Hamberger said carriers are weighing whether to
have a customer service symposium early next year
to examine approaches such as shifting customer
service responsibility from marketing and sales to
the operations department that actually provides
the service.



CRTS Update #11-31
Sunday, November 15th, 1998 at 10:45 EST

Industry gets ready for Conrail division
Shippers await word on contract assignments
BY RIP WATSON

W ith Norfolk Southern Corp. and CSX Corp. making
final preparations for the breakup of Conrail early
next year, carriers and shippers alike are getting
set to deal with a new world of opportunity after
the split.

As the National Industrial Transportation League
gathers for its annual meeting this week in San
Diego, the immediate commercial issue for NS, CSX
and their customers is to finalize who will assume
the existing Conrail contracts after the breakup
occurs.

Allocations imminent

The companies have advised that the process of
allocating those contracts will be completed this
month. That means Conrail customers should know in
the coming weeks whether NS or CSX will be taking
over their existing Conrail contracts for much of
1999.

Under the terms of their purchase of Conrail, NS
will assume 58% of the value of Conrail contracts,
while CSX takes over 42%. The percentages represent
the amount of each company's financial investment
in their purchase.

When the split occurs, NS and CSX will divide about
$3.7 billion in rail revenue. Some 20% of that
traffic should be subject to new rail-to-rail
competition under the plan approved by the Surface
Transportation Board this summer.

Areas where new competition will be created include
Detroit, Philadelphia/southern New Jersey and
northern New Jersey.

In the meantime, the key question of how well the
buyers of Conrail can provide the service called
for by those contracts will remain unanswered,
pending announcement of a more precise date for the
breakup of Conrail.

The performance of NS and CSX will be watched
closely by shippers and other carriers in light of
Union Pacific Railroad's 1997 service problems.

No service announcements Since the preparation for
the split is the primary focus today, there have
been no new announcements of additional service in
recent weeks.

Both companies are promoting the acquisition as a
growth-oriented purchase in which their commercial
success will be related closely to their ability to
provide high-quality service that attracts new
business.

Shippers will be watching closely when the breakup
actually occurs.

"When the starting gun goes off, we'll hear a lot
of comments. It will be like the Oklahoma Land
Rush," said Ed Emmett, president of the National
Industrial Transportation League. For the immediate
future, the procedure for handling contracts has
been mandated by the Surface Transportation Board
and the terms of agreements worked out through a
joint carrier/shipper group called the Conrail
Transaction Council.

When the STB approved the $10 billion deal in July,
it allowed CSX and NS to decide who would perform
services called for in existing Conrail contracts
for a six-month period. That was allowed even if
those accords had "anti-assignment" clauses that
blocked another carrier from performing service
without the shipper's approval.

Transitional period needed

The agency reasoned in its decision that a
transitional period was needed to assure that the
breakup was done in an orderly fashion.

NS and CSX each will take over contracts where they
will be the sole serving railroads, according to
STB's decision. That ruling provided that contracts
in the shared-asset areas served by both carriers
would be allocated in such a way that the 58-42
ownership split was maintained for the entire
contract revenue.

The technical details of the contract
administration were worked out by the Transaction
Council created by a pact among NS, CSX and the
NITL. In response to shippers' questions posed
through the Transaction Council, NS and CSX said
existing Conrail contracts would be renewed and
extended until the date each company begins
separate operations or until Feb. 14.

Once the split occurs, contracts with
anti-assignment clauses will stay for six months,
with NS and CSX picking the rail to perform the
service. During that 180-day period, customers can
give 30 days' notice if they want to terminate the
contract and seek a different carrier than the one
assigned. Shippers also can seek a new carriers
after the six-month transition period.

Ed Rastatter, director of policy for NITL, said
both railroads told NITL members they would attempt
to accommodate requests from customers who wanted
contracts assigned or changed to a particular rail.

Shipments that aren't covered by contract can be
put out for bid at any time, but no agreement can
take effect until the first date of separate
operations, according to the transaction council
documents.

Contracts already are being written to cover

service after the six-month period and for new
business, said CSX spokeswoman Kathy Burns.

During the STB review process, the number of
Conrail contracts that were covered by
anti-assignment clauses was not identified though
the estimates ranged as high as 80%.

In dollar terms, contracts that will be carried
over appear to represent a lot more than $2 billion
in annual revenue because at least 75% of major
railroad freight typically is covered by contracts.
There are no available statistics about individual
carriers' contract volumes.

The Transaction Council proceedings also noted that
contracts involving Western railroads and Conrail
would remain for six months with no alteration in
terms for the Western carriers.

In situations where both NS and CSX could perform
the services under a current Conrail joint-line
contract with a Western carrier, shippers can
approach both Eastern railroads with proposals for
service after the transition period ends.



CRTS Update #11-30
Thursday, November 12th, 1998 at 13:50 EST

TRACKWORK PROGRAMS CURRENTLY UNDERWAY:

Lehigh Line:
Tie gang working on the single track between CP-Bound Brook, NJ and
CP-Potter, NJ after train TV-175 passes.

River Line:
Extension of the controlled siding at Nyack, NY CP-22 to CP-24

Marion Branch:
Tie gang working on the single track between CP-121 and CP-54.

Montreal Secondary:
Rail gang working on the single track between milepost 141 in Potsdam,
NY and milepost 158 in Massena, NY.

Short Line:
Interlocking reconfigurations and track extensions.



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* denotes train recrew


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