Because Conrail cannot continue indefinitely as a private-sector enterprise dependent on public financing, it must achieve fundamental changes in its efficiency and cost structure. The Staggers Act required USRA to submit to Congress this report examining the effect upon Conrail, Northeast rail service, railroad employees, the regional economy and other rail carriers of (1) continued Federal funding; (2) reduced Federal funding; and (3) no further Federal funding. The three analytical studies demonstrate that with proper changes in its cost structure and relief from statutory labor protection obligations, Conrail can become viable. Also examined was dissolution of Conrail with transfer of some of its lines and its traffic to other railroads which could be accomplished with little regional economic disruption if an orderly transition were to take place. USRA found little difference in funding requirements between breaking up Conrail and attaining a viable railroad; it found more benefit in a continuation of the present Conrail organization which, as a condition of its not being dissolved, would be required to achieve very substantial progress in a two-year transition period in increasing labor productivity, and in fleet planning, car utilization and plant capacity. If Conrail succeeds, the need for government funding will have been reduced or eliminated and the region will have been served; if Conrail does not then prove viable, the interval will have better prepared the property and all parties involved for an orderly dissolution.

  • Corporate Authors:

    United States Railway Association

    2100 2nd Street, SW
    Washington, DC  United States  20595
  • Publication Date: 1981-4

Media Info

  • Features: Tables;
  • Pagination: 79 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00334733
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 9 1981 12:00AM