DATE: Friday, October 3, 1997               TAG: 9710030679

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 

                                            LENGTH:   35 lines

MARYLAND SUPPORTS BREAKUP OF CONRAIL

Maryland became the first state Thursday to formally endorse plans by Norfolk Southern and CSX to break up Conrail.

Maryland Gov. Parris N. Glendening announced the decision Thursday in a ceremony at the Dundalk Marine Terminal in the Port of Baltimore.

``This acquisition will help to increase railroad employment in Maryland and will further strengthen our economy,'' Glendening said.

The two Virginia railroads' plan to break up Philadelphia-based Conrail Inc. is before the federal Surface Transportation Board, which is expected to rule on it by next summer. Norfolk Southern Corp. and CSX Corp. are seeking the endorsement of states, municipalities and shippers to help them gain the board's approval for the $10.2 billion deal.

``Norfolk Southern is pleased Maryland has endorsed this acquisition, and we look forward to a prosperous new partnership that will benefit all parties,'' said David Goode, chairman of the Norfolk-based railroad.

Norfolk Southern and CSX say that dividing Conrail will improve the Port of Baltimore's rail connections and service.

``The acquisition of Conrail by CSX and Norfolk Southern means the state, and particularly the Port of Baltimore, will be served by two equally strong, vigorous competitors,'' said John Snow, chairman of Richmond-based CSX.

Maryland officials agree. ``Maryland will keep competitive rail service, commuter rail access and get improvements to the Port of Baltimore because of the hard work and cooperation of the state, the federal government and the railroads,'' said Maryland's U.S. Sen. Barbara Mikulksi. ILLUSTRATION: Color photo

Gov. Parris N. Glendening...

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