Intermodals Pinched by Conrail Delays

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Spokesmen for two of the nation’s major railroads — Norfolk Southern and CSX — conceded that their service has “just not been good enough” in the wake of their split-up of Conrail.

However, both companies expressed the conviction that things were improving and problems were being solved since their June 1 takeover of the former railroad’s properties.

In a bit of unexpected fallout, some intermodal trucking companies suffered along with the two railroads, as shippers turned to over-the-road truckers.

The problems that have plagued NS and CSX in the operation of their segments of the dismembered Conrail system were discussed in some detail at the first “post-split” meeting of the Conrail Transaction Council, established as part of the agreement which cleared the way for the $10 billion transaction. The June 23 meeting was held at the offices of a law firm in the Washington, D.C.

The meeting, which was scheduled before the June 1 breakup, gave shippers an opportunity to discuss the kinds of problems that they were having. Among the issues raised were: problems of car location and identification, cars languishing undelivered in the systems since before the takeover and the frustration of shippers forced to devote valuable staff time to track freight cars for their customers.

Also heard were complaints that some trucking companies lack the equipment to handle the diverted traffic, and that some specialized highway carriers are charging premium rates for the emergency service. Some shippers raised questions about claims for reimbursement of cost differentials resulting from the service problems.

For the full story, see the June 28 print edition of Transport Topics. Subscribe today.