NORFOLK, Va. – Noting “the Conrail transaction has been a success,” Norfolk Southern Chairman, President and Chief Executive Officer David R. Goode today urged the Surface Transportation Board not to extend its formal regulatory oversight period.
“The history of the past five years shows how the transaction has lived up to the board’s expectations,” Goode testified during a hearing in Washington. “Perhaps most importantly, the transaction resulted in two competitively balanced rail systems serving the eastern United States. In addition, of course, the transaction has created vigorous new rail-to-rail competition throughout the former Conrail territory,” benefiting shippers and communities.
“No party has demonstrated any transactional or other issues that warrant extending the formal oversight period beyond its five-year term,” Goode said. “We therefore request that the board not extend its formal oversight and the periodic reporting requirements that go along with it.”
Norfolk Southern and CSX began operating their respective portions of the former Conrail system on June 1, 1999. In approving the transaction, the STB mandated a five-year formal oversight period, which would make 2004 the final year.