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.
SRI International333 Ravenswood Avenue
Menlo Park, CA United States 94025-3493
Washington, DC United States 20590
- Moon, A E
- JONES, P S
- Publication Date: 1979-3
- Pagination: 98 p.
- TRT Terms: Benefit cost analysis; Competition; Consolidations; Finance; Financial analysis; Freight transportation; Improvements; Industry structure; Labor relations; Legal factors; Level of service; Management; Mergers; Motor carriers; Operating costs; Personnel management; Policy; Productivity; Profitability; Quality of service; Railroad transportation; Railroads; Traffic managers
- Identifier Terms: Seaboard Coast Line Railroad; U.S. Interstate Commerce Commission
- Uncontrolled Terms: Agreements; Financial management; Services; Shippers
- Old TRIS Terms: Cargo transportation; Management policies
- Subject Areas: Administration and Management; Finance; Freight Transportation; Law; Motor Carriers; Policy; Railroads;
- 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