DATE: Thursday, November 20, 1997           TAG: 9711200426

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BLOOMBURG BUSINESS NEWS 

DATELINE: ANAHEIM, CALIF.                   LENGTH:   49 lines

GOODE SOLICITS SHIPPERS' BACKING FOR CONRAIL DEAL

Norfolk Southern Corp. Chairman David R. Goode asked the nation's largest shippers' group to support federal approval for his company's acquisition of Consolidated Rail Corp.

Goode asked the 2,500 attendees of the National Industrial Transportation League for their public support, even as a freight logjam grips the nation in the wake of another large rail acquisition, the merger of the Southern Pacific railroad into Union Pacific Corp.

Norfolk Southern, based in Norfolk, and CSX Corp., based in Richmond, have acquired Conrail for $10.2 billion, but need the approval of the federal Surface Transportation Board to split it up between themselves. They are presently operating Philadelphia-based Conrail as a separate company through a joint venture.

Since Union Pacific's freight debacle, which has cost shippers and manufacturers tens of millions of dollars in added costs and delays, some shippers have said they will oppose the Conrail sale unless the federal board imposes some conditions to insure service doesn't suffer.

The Surface Transportation Board has been examining Union Pacific's performance, and recently gave a small railroad, the Texas Mexican Railroad, permission to operate over Union Pacific's lines in the Houston area to help ease the jam.

Goode told the group that ``shippers ultimately pay the cost'' of any conditions the government imposes on the sale, or any concessions the purchasers are required to make to competing railroads.

Goode said he was ``blatantly'' asking the league's members to help. ``I share your concerns'' over the Union Pacific problems he said. ``We need to get through this together.''

Other shippers and government officials have asked the transport board to ensure that safety doesn't suffer at Norfolk Southern or CSX as a result of the acquisition.

In addition to its freight logjam, the Union Pacific has been plagued by a series of accidents and is being examined by a team of safety inspectors from the Federal Railroad Administration for the second time this year.

Goode said that ``the way to improve safety in the Eastern U.S. rail network is to quickly approve'' the Conrail acquisition.

Goode attended the league meeting to receive its award as logistics executive of the year. ILLUSTRATION: Color photo

David Goode

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