THE MERGER BETWEEN THE SEABOARD AIR LINE AND ATLANTIC COAST LINE RAILROADS: A CASE STUDY

The study examines the merger of the Atlantic Coast Line into the Seaboard Air Line to form the Seaboard Coast Line Railroad. The objective of the study was to identify the cost, benefits, and service improvements that resulted from the merger. The study team examined the ICC merger docket, company records, and financial statistics and interviewed railroad employees and shippers. The examination was limited to the time between the merger in 1967 and the subsequent merger with the Louisville and Nashville Railroad in 1971. The examination revealed that the original plans and purposes of the merger had been modified considerably in the seven-year interval between filing for the merger and final ICC approval. Further, delays in negotiating new labor agreements immediately after the merger resulted in decreased productivity and increased costs, which depleted the financial resources of the merged company and delayed the addition of major capital improvements. Service improved for some shippers, remained about the same for others, and became worse for others, as the train connection improved in some routes on the new railroads. A detailed analysis of the impact of the merger on employees, management, traffic, shippers, and communities is presented.

  • Corporate Authors:

    SRI International

    333 Ravenswood Avenue
    Menlo Park, CA  United States  94025-3493

    Federal Railroad Administration

    Office of Policy and Program Development, 1200 New Jersey Avenue, SE
    Washington, DC  United States  20590
  • Authors:
    • Moon, A E
    • JONES, P S
  • Publication Date: 1979-3

Media Info

  • Pagination: 98 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00199120
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Report/Paper Numbers: FRA/OPPD-79/5 Final Rpt.
  • Contract Numbers: DOT-FR-65152
  • Files: NTIS, TRIS, USDOT
  • Created Date: Dec 19 1980 12:00AM