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Conrail , formally the Consolidated Rail Corporation, was the primary Class I railroad in the Northeastern United States between 1976 and 1999. The trade name Conrail is a
portmanteau A portmanteau word, or portmanteau (, ) is a blend of wordscontinues to do business as an asset management and network services provider in three Shared Assets Areas that were excluded from the division of its operations during its acquisition by
CSX Corporation CSX Corporation is an American holding company focused on rail transportation and real estate in North America, among other industries. The company was established in 1980 as part of the Chessie System and Seaboard Coast Line Industries merger ...
and the Norfolk Southern Railway. The federal government created Conrail to take over the potentially-profitable lines of multiple bankrupt carriers, including the Penn Central Transportation Company and Erie Lackawanna Railway. After railroad regulations were lifted by the 4R Act and the Staggers Act, Conrail began to turn a profit in the 1980s and was privatized in 1987. The two remaining Class I railroads in the East, CSX Transportation and the Norfolk Southern Railway (NS), agreed in 1997 to acquire the system and split it into two roughly-equal parts (alongside three residual shared-assets areas), returning rail freight competition to the Northeast by essentially undoing the 1968 merger of the Pennsylvania Railroad and
New York Central Railroad The New York Central Railroad was a railroad primarily operating in the Great Lakes and Mid-Atlantic regions of the United States. The railroad primarily connected greater New York and Boston in the east with Chicago and St. Louis in the Mi ...
that created
Penn Central The Penn Central Transportation Company, commonly abbreviated to Penn Central, was an American class I railroad that operated from 1968 to 1976. Penn Central combined three traditional corporate rivals (the Pennsylvania, New York Central and th ...
. Following approval by the Surface Transportation Board, CSX and NS took control in August 1998, and on June 1, 1999, began operating their respective portions of Conrail. The old company remains a jointly-owned subsidiary, with CSX and NS owning respectively 42% and 58% of its stock, corresponding to how much of Conrail's assets they acquired. Each parent, however, has an equal
voting interest Voting interest (or voting power) in business and accounting means the total number, or percent, of votes entitled to be cast on the issue at the time the determination of voting power is made, excluding a vote which is contingent upon the happenin ...
. The primary asset retained by Conrail is ownership of the three
Shared Assets Areas Conrail Shared Assets Operations (CSAO) is the commonly used name for modern-day Conrail (reporting mark CRCX), an American railroad company. It operates three networks, the North Jersey, South Jersey/Philadelphia, and Detroit Shared Assets Areas ...
in
New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delawa ...
,
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
, and
Detroit Detroit ( , ; , ) is the largest city in the U.S. state of Michigan. It is also the largest U.S. city on the United States–Canada border, and the seat of government of Wayne County. The City of Detroit had a population of 639,111 at t ...
. Both CSX and NS have the right to serve all shippers in these areas, paying Conrail for the cost of maintaining and improving trackage. They also make use of Conrail to perform switching and terminal services within the areas, but not as a
common carrier A common carrier in common law countries (corresponding to a public carrier in some civil law systems,Encyclopædia Britannica CD 2000 "Civil-law public carrier" from "carriage of goods" usually called simply a ''carrier'') is a person or compan ...
, since contracts are signed between shippers and CSX or NS. Conrail also retains various support facilities including
maintenance-of-way A railway track (British English and UIC terminology) or railroad track (American English), also known as permanent way or simply track, is the structure on a railway or railroad consisting of the rails, fasteners, railroad ties (sleepers, ...
and training, as well as a 51 percent share in the Indiana Harbor Belt Railroad.


History


Context: 1973–1976

In the years leading to 1973, the freight railroad system of the United States was collapsing. Although government-funded
Amtrak The National Railroad Passenger Corporation, doing business as Amtrak () , is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. States and nine cities in Canada. ...
took over intercity passenger services on May 1, 1971, railroad companies continued to lose money due to extensive government regulations, expensive labor costs, competition from other transportation modes, declining industrial business and other factors. Its largest Eastern railroad, the Penn Central Railroad (PC), had declared bankruptcy in 1970, after less than three years of existence. Formed in 1968 by the merger of the
New York Central Railroad The New York Central Railroad was a railroad primarily operating in the Great Lakes and Mid-Atlantic regions of the United States. The railroad primarily connected greater New York and Boston in the east with Chicago and St. Louis in the Mi ...
and Pennsylvania Railroad (and supplemented in 1969 by the New York, New Haven and Hartford Railroad), the PC was created with almost no plans to merge the varied corporate cultures, and the resulting company was a hopelessly-entangled mess. At its lowest point, PC was losing over $1 million a day and trains were becoming lost all over the railroad. In 1972,
Hurricane Agnes Hurricane Agnes in 1972 was the costliest hurricane to hit the United States at the time, causing an estimated $2.1 billion in damage. The hurricane's death toll was 128. The effects of Agnes were widespread, from the Caribbean to Canada, ...
damaged the rundown Northeast railway network and threatened the solvency of other railroads, including the somewhat more solvent Erie Lackawanna (EL). In mid-1973, officials with the bankrupt Penn Central threatened to
liquidate Liquidation is the process in accounting by which a company is brought to an end in Canada, United Kingdom, United States, Ireland, Australia, New Zealand, Italy, and many other countries. The assets and property of the company are redist ...
and cease operations by year's end if they did not receive government aid by October 1. This threat to US freight and passenger traffic galvanized the
Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of ...
to quickly create a bill to nationalize the bankrupt railroads. The Association of American Railroads, which opposed nationalization, submitted an alternate proposal for a government-funded private company. Judge Fullam forced the Penn Central to operate into 1974, when, on January 2, after threatening a
veto A veto is a legal power to unilaterally stop an official action. In the most typical case, a president or monarch vetoes a bill to stop it from becoming law. In many countries, veto powers are established in the country's constitution. Veto ...
, President
Richard Nixon Richard Milhous Nixon (January 9, 1913April 22, 1994) was the 37th president of the United States, serving from 1969 to 1974. A member of the Republican Party, he previously served as a representative and senator from California and was ...
signed the
Regional Rail Reorganization Act In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and the interaction of humanity and t ...
of 1973 into law. The "3R Act," as it was called, provided interim funding to the bankrupt railroads and defined a new Consolidated Rail Corporation under the Association of American Railroads' plan. The 3R Act also formed the
United States Railway Association The United States Railway Association (USRA) was a government-owned corporation created by United States federal law that oversaw the creation of Conrail, a railroad corporation that would acquire and operate bankrupt and other failing freight ra ...
(USRA), another government corporation, taking over the powers of the
Interstate Commerce Commission The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to elimina ...
with respect to allowing the bankrupt railroads to abandon unprofitable lines. The USRA was incorporated on February 1, 1974, and Edward G. Jordan, an
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
executive Executive ( exe., exec., execu.) may refer to: Role or title * Executive, a senior management role in an organization ** Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators ** Executive di ...
from
California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
, was named president on March 18 by Nixon. Arthur D. Lewis of Eastern Air Lines was appointed chairman on April 30, and the remainder of the board was named on May 30 and sworn in on July 11. Under the 3R Act, the USRA was to create a "Final System Plan" to decide which lines should be included in the new Consolidated Rail Corporation. Unlike most railroad consolidations, only the designated lines were to be taken over. Other lines would be sold to Amtrak, various state governments, transportation agencies, and solvent railroads. The few remaining lines were to remain with the old companies along with all previously-abandoned lines, many stations, and all non-rail related properties, thus converting most of the old companies into solvent property-holding companies. The plan was unveiled on July 26, 1975, consisting of lines from Penn Central and six other companies—the Ann Arbor Railroad (bankrupt 1973), Erie Lackawanna Railway (1972),
Lehigh Valley Railroad The Lehigh Valley Railroad was a railroad built in the Northeastern United States to haul anthracite coal from the Coal Region in Pennsylvania. The railroad was authorized on April 21, 1846 for freight and transportation of passengers, goods, ...
(1970), Reading Company (1971), Central Railroad of New Jersey (1967) and Lehigh and Hudson River Railway (1972). Controlled railroads and jointly-owned railroads such as Pennsylvania-Reading Seashore Lines and the
Raritan River Railroad The Raritan River Rail Road was a shortline railroad in Middlesex County, New Jersey U.S., Founded in 1888, it was based in South Amboy, from which it ran west as far as New Brunswick. It served both passengers and freight in its heyday and op ...
(1980) were also included (See
list of railroads transferred to Conrail The Consolidated Rail Corporation (Conrail) was formed on April 1, 1976 not by a standard merger, but as a new government corporation that took over only designated lines and other rail-related assets from the existing bankrupt companies. Seven ma ...
for a full list).U.S. Railway Association (USRA), Washington, DC (February 26, 1975). "Fact Sheet: The Preliminary System Plan for Restructuring the Railroads of the Northeast and Midwest." It was approved by Congress on November 9, and on February 5, 1976, President Gerald Ford signed the
Railroad Revitalization and Regulatory Reform Act The Railroad Revitalization and Regulatory Reform Act of 1976, often called the "4R Act," is a United States federal law that established the basic outlines of regulatory reform in the railroad industry and provided transitional operating funds fo ...
of 1976, which included this Final System Plan, into law.USRA (July 26, 1975). ''Final System Plan for Restructuring Railroads in the Northeast and Midwest Region pursuant to the Regional Rail Reorganization Act of 1973.'' ("FSP"):
.
The EL had been formed in 1960 as a merger of the
Erie Railroad The Erie Railroad was a railroad that operated in the northeastern United States, originally connecting New York City — more specifically Jersey City, New Jersey, where Erie's Pavonia Terminal, long demolished, used to stand — with Lake ...
and Delaware, Lackawanna and Western Railroad. It too was bankrupt, but was somewhat stronger financially than the others. It was ruled reorganizable under Chapter 77 on April 30, 1974 (as had the Boston and Maine Railroad), but on January 9, 1975, with no end to its losses in sight, its trustees reconsidered and asked for inclusion. The Final System Plan assigned a major section of the EL, from northern
New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delawa ...
west to northeast
Ohio Ohio () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Of the List of states and territories of the United States, fifty U.S. states, it is the List of U.S. states and territories by area, 34th-l ...
, to be sold to the
Chessie System Chessie System, Inc. was a holding company that owned the Chesapeake and Ohio Railway (C&O), the Baltimore and Ohio Railroad (B&O), the Western Maryland Railway (WM), and Baltimore and Ohio Chicago Terminal Railroad (B&OCT). Trains operated under ...
, which would help spur
competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, ind ...
in Conrail's territory. Chessie, however, could not reach an agreement with EL labor unions, and in February 1976 announced that it would not be buying the EL section. The USRA hurriedly assigned large amounts of trackage rights to the Delaware and Hudson Railway, allowing it to compete in the
Philadelphia, Pennsylvania Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
, and Washington, D.C., markets. The State of Michigan decided to keep operational the full Ann Arbor Railroad, of which Conrail would run only the southernmost portion. Michigan bought it and the whole line was operated by Conrail for several years until it was sold to a short line.


Operation: 1976–1986

Conrail was incorporated in Pennsylvania on October 25, 1974, and operations began on April 1, 1976. The government owned 85%, with employees owning the remaining 15%. The theory was that if the service was improved through increased
capital investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...
, the economic basis of the railroad would be improved. During its first seven years, Conrail proved to be highly unprofitable, despite receiving billions of dollars of assistance from Congress. The corporation declared enormous losses on its federal income tax returns from 1976 through 1982, resulting in an accumulated net operating loss of $2.2 billion during that period. Congress once again reacted with support by passing the Northeast Rail Service Act of 1981 (NERSA), which amended portions of the 3R Act by exempting Conrail from liability for any state taxes and requiring the
Secretary of Transportation A secretary, administrative professional, administrative assistant, executive assistant, administrative officer, administrative support specialist, clerk, military assistant, management assistant, office secretary, or personal assistant is a wh ...
to make arrangements for the sale of the government's interest in Conrail. After NERSA was implemented, Conrail, under the aggressive leadership of L. Stanley Crane''L. Stanley Crane'' (born in
Cincinnati Cincinnati ( ) is a city in the U.S. state of Ohio and the county seat of Hamilton County. Settled in 1788, the city is located at the northern side of the confluence of the Licking and Ohio rivers, the latter of which marks the state line w ...
, 1915) raised in Washington, lived in McLean before moving to
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
in 1981. He began his career with Southern Railway after graduating from
The George Washington University , mottoeng = "God is Our Trust" , established = , type = Private federally chartered research university , academic_affiliations = , endowment = $2.8 billion (2022) , presid ...
with a
chemical engineering Chemical engineering is an engineering field which deals with the study of operation and design of chemical plants as well as methods of improving production. Chemical engineers develop economical commercial processes to convert raw materials in ...
degree in 1938. He worked for the railroad, except for a stint from 1959 to 1961 with the Pennsylvania Railroad, until reaching the company's mandatory retirement age in 1980. Crane went to Conrail in 1981 after a distinguished career that had seen him rise to the position of CEO at the Southern Railway. He died of pneumonia on July 15, 2003, at a hospice in Boynton Beach, Florida.
began to improve and reported taxable income between $2 million and $314 million each year from 1983 through 1986. Conrail's government-funded rebuilding of the dilapidated infrastructure and
rolling stock The term rolling stock in the rail transport industry refers to railway vehicles, including both powered and unpowered vehicles: for example, locomotives, freight and passenger cars (or coaches), and non-revenue cars. Passenger vehicles ca ...
it inherited from its six predecessors succeeded by the end of the 1970s in improving the physical condition of tracks, locomotives and freight cars. However, fundamental economic regulatory issues remained, and Conrail continued to post losses of as much as $1 million a day. Conrail management, recognizing the need for more regulatory freedoms to address the economic issues, were among the parties lobbying for what became the Staggers Act of 1980, which significantly loosened the
Interstate Commerce Commission The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to elimina ...
's rigid economic control of the rail industry. This allowed Conrail and other carriers the opportunity to become profitable and strengthen their finances. The Staggers Act allowed the setting of rates that would recover capital and operating cost (fully allocated cost recovery) by each and every route mile the railroad operated. There would be no more cross-subsidization of costs between route-miles (that is, revenue on profitable route segments were not used to subsidize routes where rates were set at intermodal parity, yet still did recover fully-allocated costs). Finally, where current and/or future traffic projections showed that profitable volumes of traffic would not return, the railroads were allowed to abandon those routes, shippers and passengers to other modes of transportation. Under the Staggers Act, railroads, including Conrail, were freed from the requirement to continue money-losing services. Conrail began turning a profit by 1981, the result of the Staggers Act freedoms and its own managerial improvements under the leadership of L. Stanley Crane, who had been chief executive officer of the Southern Railway. While the Staggers Act helped immensely in allowing all railroads to more-easily abandon unprofitable rail lines and set their own freight rates, it was under Crane's leadership that Conrail truly became a profitable operation. Soon after Crane took office in 1981 he shed another 4,400 miles from the Conrail system in the following two years, which accounted for only 1% of the railroad's overall traffic and 2% of its profits while saving it millions of dollars in maintenance costs. NERSA relieved Conrail of its requirement to provide commuter service on the Northeast Corridor, further improving its finances. In 1984, the government put its 85% share up for sale. Bids were received from
Alleghany Corporation Alleghany Corporation is an American investment holding company originally created by the railroad entrepreneurs Oris and Mantis Van Sweringen as a holding company for their railroad interests. It was incorporated in 1929 and reincorporated ...
, Citibank, an employee buyout, Guilford Transportation Industries, Norfolk Southern Railway and a consortium headed by J. Willard Marriott. On February 8, 1985,
Secretary of Transportation A secretary, administrative professional, administrative assistant, executive assistant, administrative officer, administrative support specialist, clerk, military assistant, management assistant, office secretary, or personal assistant is a wh ...
Elizabeth Dole announced Norfolk Southern Railway as the successful bidder. After considerable debate in Congress, the Conrail Privatization Act of 1986 was signed into law by President Reagan on October 21, 1986. However, in August 1986, Norfolk Southern had withdrawn its bid citing Congressional delays and taxation changes. The government decided that its interest in Conrail would then be sold by the then-largest
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...
in US history. The sale was effective from March 26, 1987, when Conrail's stock, worth $1.65 billion, was sold to private investors.


Passenger rail operations

Conrail inherited the
commuter rail Commuter rail, or suburban rail, is a passenger rail transport service that primarily operates within a metropolitan area, connecting commuters to a central city from adjacent suburbs or commuter towns. Generally commuter rail systems are con ...
operations of its predecessor lines. It relinquished several during the 1970s, including the Erie Cleveland–Youngstown service (discontinued in 1977), the Pennsylvania Railroad Chicago–Valparaiso service (transferred to
Amtrak The National Railroad Passenger Corporation, doing business as Amtrak () , is the national passenger railroad company of the United States. It operates inter-city rail service in 46 of the 48 contiguous U.S. States and nine cities in Canada. ...
in 1979), and the services within the
Massachusetts Bay Transportation Authority The Massachusetts Bay Transportation Authority (abbreviated MBTA and known colloquially as "the T") is the public agency responsible for operating most public transportation services in Greater Boston, Massachusetts. The MBTA transit network ...
service district (transferred to the Boston and Maine Railroad, under contract to the MBTA, in March 1977). Pursuant to the ''Northeast Rail Service Act of 1981,'' Conrail operated the remainder until 1983 when these services were transferred to state or metropolitan transit authorities.United States. Northeast Rail Service Act of 1981. (Title XI, Subtitle E of Omnibus Budget Reconciliation Act of 1981.) Approved 1981-08-13. The transit authorities purchased the track and right-of-way on which their commuter operations ran, leaving Conrail freight operations as a tenant.


Breakup 1997–1999

With Conrail's increasing success, it decided to merge the company with another railroad, so it approached CSX Transportation about buying Conrail. CSX's bid for Conrail, however, drew the attention of Norfolk Southern Railway which, fearing that CSX would come to dominate rail traffic in the eastern US, made a bid of its own leading to a takeover battle between the two railroads. In 1997, however, the two railroads struck a compromise agreement to jointly acquire Conrail and split most of its assets between them, with Norfolk Southern acquiring a larger portion of the Conrail network via a larger stock buyout. Under the final agreement approved by the Surface Transportation Board, Norfolk Southern acquired 58 percent of Conrail's assets, including roughly 6,000 Conrail route miles, and CSX received 42 percent of Conrail's assets, including about 3,600 route miles. The buyout was approved by the Surface Transportation Board (successor agency to the Interstate Commerce Commission) and took place on August 22, 1998. Under the control of lawyer-turned-CEO Tim O'Toole, the lines were transferred to two newly formed limited liability companies, to be subsidiaries of Conrail but leased to CSX and Norfolk Southern, respectively
New York Central Lines New York Central Lines LLC was a limited liability company that owned railroad lines in the United States that are owned and operated by CSX Transportation. The company was formed in 1998 to own Conrail lines assigned to CSX in the split of Conr ...
(NYC) and Pennsylvania Lines (PRR). The NYC and PRR
reporting mark A reporting mark is a code used to identify owners or lessees of rolling stock and other equipment used on certain rail transport networks. The code typically reflects the name or identifying number of the owner, lessee, or operator of the equip ...
s, which had passed to Conrail, were also transferred to the new companies, and NS also acquired the CR reporting mark. Operations under CSX and NS began on June 1, 1999, bringing Conrail's 23-year existence to an end. As the names indicated, CSX acquired the former
New York Central Railroad The New York Central Railroad was a railroad primarily operating in the Great Lakes and Mid-Atlantic regions of the United States. The railroad primarily connected greater New York and Boston in the east with Chicago and St. Louis in the Mi ...
main line from
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
and Boston, Massachusetts, to
Cleveland, Ohio Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S ...
, and the former
Cleveland, Cincinnati, Chicago and St. Louis Railway The Cleveland, Cincinnati, Chicago and St. Louis Railway, also known as the Big Four Railroad and commonly abbreviated CCC&StL, was a railroad company in the Midwestern United States. It operated in affiliation with the New York Central system. I ...
(NYC Big Four) line to
Indianapolis, Indiana Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Mar ...
(continuing west to East St. Louis, Illinois) on a former
Pittsburgh, Cincinnati, Chicago and St. Louis Railroad The Pittsburgh, Cincinnati, Chicago and St. Louis Railroad, commonly called the Pan Handle Route (Panhandle Route in later days), was a railroad that was part of the Pennsylvania Railroad system. Its common name came from its main line, whic ...
(PRR Panhandle Route line), while Norfolk Southern got the former Pennsylvania Railroad main line and Cleveland and Pittsburgh Railroad from Jersey City, New Jersey, to Cleveland, and the rest of the former NYC main line west to
Chicago, Illinois (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...
. Thus the Conrail "X" was neatly split in two, CSX getting one diagonal from Boston to St. Louis and Norfolk Southern the other from New York to Chicago. The two lines cross at a bridge southeast of downtown Cleveland (), where the former Cleveland and Pittsburgh Railroad crosses over the NYC's former
Cleveland Short Line Railway The Cleveland Short Line Railway is a freight bypass around southern Cleveland, Ohio, in the United States. A quasi-independent railroad organized by major shareholders of the Lake Shore and Michigan Southern Railway, the shortline was intended ...
around the south side of Cleveland. In three major metropolitan areas – North Jersey, South Jersey/Philadelphia, and Detroit – Conrail Shared Assets Operations continues to serve as a terminal operating company owned by both CSX and NS. The Conrail Shared Assets Operations arrangement was a concession made to federal regulators who were concerned about the lack of competition in certain rail markets and logistical problems associated with the breaking-up of Conrail operations as they existed in densely-populated areas with many local customers. The smaller Conrail operation that exists today serves rail freight customers in these markets on behalf of its two owners. A fourth area, the former
Monongahela Railway The Monongahela Railway was a coal-hauling short line railroad in Pennsylvania and West Virginia in the United States. It was jointly controlled originally by the Pennsylvania Railroad, New York Central subsidiary Pittsburgh and Lake Erie Rail ...
in southwest
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, was originally owned jointly by the Baltimore and Ohio Railroad, Pennsylvania Railroad and
Pittsburgh and Lake Erie Railroad The Pittsburgh and Lake Erie Railroad (P&LE) , also known as the "Little Giant", was formed on May 11, 1875. Company headquarters were located in Pittsburgh, Pennsylvania. The line connected Pittsburgh in the east with Youngstown, Ohio in the ...
. Conrail absorbed the company in 1993, and assigned trackage rights to CSX, the successor to the B&O and P&LE. With the Conrail breakup, those lines are owned by NS, but the CSX trackage rights are still in place.


Locomotives

Since Conrail was divided between Norfolk Southern Railway and CSX Transportation in 1999, all remaining locomotives have been successively repainted, and many remain in service. CR units had unique features such as "Bright Future" blue paint, flashing ditch lights, and Leslie RS-3L horns. Another key spotting feature is ditchlights mounted under the locomotive's front deck. This is a preference different from Norfolk Southern and CSX, which order locomotives with the lights above the deck. Red marker lights (not class lights, which are multi-color) were also a preference of Conrail. Most locomotives that went to CSX retained their marker lights, while Norfolk Southern quickly removed them. All Conrail locomotives that went to CSX and NS have been either retired or repainted. The last unit to wear "Conrail Blue", NS 8312, was retired in 2014. Conrail was the only railroad to receive EMD SD80MACs (the Chicago North & Western were originally supposed to receive SD80MACs with marker lights, but when that railroad merged with Union Pacific, the order was rescinded) and were separated evenly between CSX and NS. Conrail had a different paint scheme for these locomotives and also the
SD70MAC The EMD SD70 is a series of diesel-electric locomotives produced by the US company Electro-Motive Diesel in response to the GE Dash 9-44CW. Production commenced in late 1992 and since then over 5,700 units have been produced; most of these are t ...
, with a large white, cone-shaped line on the front, bearing "Conrail Quality" lettering. The SD70MACs weren't fitted with marker lights, as they were ordered after the Conrail breakup was agreed upon, and neither NS or CSX wanted 'their' locomotives to be equipped with markers. Similarly, the standard-cab SD70, Conrail's final order of locomotives, were ordered to NS specifications, and were in Norfolk Southern's preferred numbering series (the 2500's), which they retained after the breakup. In early 2015, the remaining 12 ex-Conrail SD80MACs owned by CSX, were purchased by Norfolk Southern, and renumbered 7217–7228. All were repainted and had their marker lights removed. Norfolk Southern sold all 29 of its remaining SD80MACs to Canadian Pacific Railway and Progress Rail in 2020. Six units, 7206, 7215, 7218, 7225, 7226 and 7227 were sold to Canadian Pacific Railway as a parts source for the recent
EMD SD70ACU The EMD SD70 is a series of diesel-electric locomotives produced by the US company Electro-Motive Diesel in response to the GE Dash 9-44CW. Production commenced in late 1992 and since then over 5,700 units have been produced; most of these are t ...
rebuilds. The remainder of the NS fleet went to Progress Rail and were scrapped by early 2022.


Signals

When Conrail was formed, it acquired many different railways, and as typical in the North American rail industry, signaling was not standardized between these railways. This caused problems for Conrail, which had to "qualify" train crews on as many as seven different signaling systems and operating rules. The varying systems included the PRR position light signals, the NYC searchlight signals and tri-light signals, and the EL tri-light and semaphore signals. Conrail, and other eastern railroads which required multiple operating rules, came up with a standardized rulebook called Northeast Operating Rules Advisory Committee (NORAC). This significantly increased operational flexibly, allowing crews to operate on any territory they were qualified on, instead of additionally needing multiple operating rules qualifications. Additionally, standardized signal rules allowed Conrail to standardize signaling hardware and operation across its system. In the early years of Conrail, the NYC "small-back" searchlight was adopted as the systemwide standard for new signal installations and replacements. The standard signal was quickly changed to the NYC tri-light. This move was done to decrease maintenance requirements, as searchlight signals need moving parts to switch between colors, unlike tri-lights, which have individual lamps. Many signals from previous railroads were re-used though, as new signaling hardware was expensive, and Conrail faced financial difficulty. As mentioned above, significant projects took place to reduce trackage, oftentimes removing double-track with automatic block signals in favor of single track with
centralized traffic control Centralized traffic control (CTC) is a form of railway signalling that originated in North America. CTC consolidates train routing decisions that were previously carried out by local signal operators or the train crews themselves. The system con ...
(CTC). Conrail also installed CTC across much of the former PRR multi-track mainline, which had relied on local towers to operate signals and control track. Conrail spent it entire existence installing tri-light signals (using NORAC rules) across much of its system. Many Conrail-installed signaling locations were removed in the 2010s, as railroads upgraded their signals for Positive Train Control compliance. Today, most Northeastern railroads associated with former Conrail lines have maintained standardization of all systems as vertical color light signals using NORAC rules. Conrail Shared Assets Operations continues to use the tri-light as its standard signal type. Amtrak uses a colorized version of PRR position light signals called "Position Color Lights".


Preservation

The Conrail Historical Society, Inc., is a
501(c)(3) A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of ...
non-profit A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
organization based in Shippensburg, Pennsylvania. The society aims to preserve and restore equipment, items pertaining to, and photographs of Conrail specifically and of American railroading in general. As of 2022, the group publishes a quarterly magazine and a calendar, as well as other occasional mailings. Previous conventions have been held in Altoona, Pennsylvania,
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
,
Cleveland Cleveland ( ), officially the City of Cleveland, is a city in the United States, U.S. U.S. state, state of Ohio and the county seat of Cuyahoga County, Ohio, Cuyahoga County. Located in the northeastern part of the state, it is situated along ...
, and Warren, Ohio. More recent preservation activities include completion of the cosmetic restoration of N7E caboose 21165 and a partnership with the B&O Railroad Museum to restore its ex-Conrail SW7 8905. The CRHS owns four pieces of on-track equipment: 86-foot boxcar 243880 (currently under development into a stand-alone Conrail museum),
caboose A caboose is a crewed North American railroad car coupled at the end of a freight train. Cabooses provide shelter for crew at the end of a train, who were formerly required in switching and shunting, keeping a lookout for load shifting, dam ...
s 21165 and 22130, and former Triple Crown RoadRailer TCSZ 463491. A preserved Conrail ex-PRR GP30 is on display at the
Railroad Museum of Pennsylvania The Railroad Museum of Pennsylvania is a railroad museum in Strasburg, Lancaster County, Pennsylvania. The museum is located on the east side of Strasburg along Pennsylvania Route 741. It is administered by the Pennsylvania Historical and Mus ...
.


Heritage unit

To mark its 30th anniversary, Norfolk Southern painted 20 new locomotives with the paint schemes of predecessor railroads. The first, on March 15, 2012, was GE ES44AC #8098 in Conrail blue with the "can opener" logo.


See also

* Defunct railroads of North America *
History of rail transportation in the United States : ''This article is part of the history of rail transport by country series.'' Wooden railroads, called wagonways, were built in the United States starting from the 1720s. A railroad was reportedly used in the construction of the French fortress ...
* List of companies transferred to Conrail


Notes


References

* * * * * * * *


External links

*
Conrail Historical SocietyDecision FD-33388
( Surface Transportation Board final decision about the Conrail split)
List and Family Trees of North American Railroads
*Th
Special Court Reporter
available at Hagley Museum and Library constitutes a step-by-step account of the Special Court's proceedings and the playing out of the final stages of railroad reorganization in the Northeast. {{authority control Corporations chartered by the United States Congress CSX Transportation Defunct companies based in Pennsylvania Defunct Connecticut railroads Defunct Delaware railroads Defunct Illinois railroads Defunct Indiana railroads Defunct Kentucky railroads Defunct Maryland railroads Defunct Massachusetts railroads Defunct Michigan railroads Defunct Missouri railroads Defunct New Jersey railroads Defunct New York (state) railroads Defunct Ohio railroads Defunct Ontario railways Defunct Pennsylvania railroads Defunct Rhode Island railroads Defunct Quebec railways Defunct Virginia railroads Defunct Washington, D.C., railroads Defunct West Virginia railroads Former Class I railroads in the United States Government-owned companies of the United States Norfolk Southern Railway Predecessors of CSX Transportation Predecessors of the Norfolk Southern Railway Rail cooperatives Railroads in the Chicago metropolitan area Railway companies established in 1974 Railway companies disestablished in 1999 1976 establishments in the United States 1999 disestablishments in the United States