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“ We are a terminal switching company jointly owned by Norfolk Southern and CSX, though it has not always been the case. In the early 1970s, many of the Northeast railroads were going bankrupt. Consequently, in April 1976, Consolidated Rail Corporation, Conrail’ s predecessor, was formed from a government initiative to save bankrupt railroads and consolidate them into a single railroad. From 1976 to 1998, before the merger between CSX and Norfolk Southern, it was classified as a Class 1 railroad. Following this merger, regulatory bodies like the Surface Transportation Board intervened to protect the interests of customers and shippers. They expressed concerns that having a single railroad in the Northeast, one of the largest metropolitan and consumer markets in the US, could lead to a monopoly.
“ The Surface Transportation Board aimed to prevent the potential for unfair trade advantages with customers being trapped with the single railroad’ s particular rates. In response, the Conrail Shared Asset Organization( the commonly used name for modern-day Conrail) was created in around 1998 and continues to operate today in North Jersey, South Jersey, Philadelphia, and the Detroit metropolitan area. Despite not being officially classified as a railroad, we are recognized as a terminal switching company. At Conrail, we take pride in being the seventh largest railroad in the US and possessing all the Class 1 characteristics typical of other Class 1 railroads, albeit classified as a terminal switching company or a Class 3 railroad,” he explains.
According to Brian, its joint ownership structure grants Conrail unique advantages in the country’ s northeastern rail landscape.“ The number one benefit is that we have significant resources from our owners, Norfolk Southern
Congratulations to Brian Gorton for his outstanding leadership and accomplishments as President and COO of Conrail.
Duane Morris is proud of our longstanding collaboration with Brian and the Conrail team.
Whether by land, air or sea, companies involved in the movement of people, material and goods turn to Duane Morris for strategic legal guidance. Many of our attorneys have spent decades working with the automotive, rail, aviation and shipping industries and the infrastructure upon which these industries are built.
Duane Morris LLP, a law firm with more than 900 attorneys in offices across the United States and internationally, is asked by a broad array of clients to provide innovative solutions to today’ s legal and business challenges.
For more information, please contact:
SHARON CAFFREY, Partner and Co-chair, Trial Practice Group 215.979.1180 | slcaffrey @ duanemorris. com
PHIL CHA, Managing Partner, Southern New Jersey Office 856.874.4253 | pcha @ duanemorris. com
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