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Copyright 1999 The New York Times Company  
The New York Times

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January 10, 1999, Sunday, Late Edition - Final

SECTION: Section 14NJ; Page 6; Column 1; New Jersey Weekly Desk 

LENGTH: 980 words

HEADLINE: ROAD AND RAIL;
One Track, Two Loads

BYLINE:  By ANDREA KANNAPELL 

BODY:
Like the goose that suddenly started laying golden eggs, New Jersey's rail system has turned from an unwelcome burden to an invaluable treasure, a vital artery for commuters as well as goods. While that may be welcome news for the region's economy, it may not be for the commuters whose trains will face growing competition for track space on crowded freight lines.

As demand for passenger service has surged statewide, with little new track being laid, a reorganization of the region's freight rail system is scheduled to take effect March 1, splitting the old Conrail monopoly between two national shippers, CSX and Norfolk Southern. The shift will return competition to the area for the first time in more than two decades. The effect over the next few years, most industry experts believe, will be dramatic increases in freight business as the new competition forces prices down and service quality up. A tug-of-war between passengers and freight is an almost certain outcome, the experts say.

"It's very difficult to operate freight and passenger service on the same tracks," said Craig Lewis, a vice president at Norfolk Southern. "With the speed of passenger trains, it's almost like a Pac-Man scenario." Passenger trains are so much faster that the space between trains needs to be much greater.

The struggles are likely to be intense. Irritated commuters can always complain to their elected officials; after all, the New Jersey Department of Transportation and New Jersey Transit are state agencies. But as in most of the country, the majority of existing tracks are owned by private freight lines and passenger trains pay for the right to run on them.

On March 1, 445 of the 1,000 route miles (multiple tracks can be laid along a single route) Conrail owns in New Jersey will fall under the jurisdiction of what is called "new Conrail," a jointly owned subsidiary of Norfolk Southern and CSX, and the remainder will become the property of one or the other parent company, as part of a deal worth more than $10 billion. Each parent will get one major northern and southern route into New Jersey: Norfolk Southern will take over the route from Bound Brook to Allentown and from North Bergen to Suffern, while CSX will take the route from North Bergen toward Albany (the West Shore Line) and from Bound Brook to Trenton.

New Jersey Transit currently operates on a total of about 850 miles of track, of which it owns 500 miles. CSX and Norfolk Southern will own about 100 miles and Amtrak owns about 240.

All the players have anticipated friction, and have tried to foresee ways of minimizing it. Since New Jersey Transit owns at least some of the track the freights will run on, it will have leverage in disputes. And there are already carefully negotiated guidelines that aim to protect passenger service without unduly hobbling the freights. For instance, the D.O.T. and New Jersey Transit say there will be no curtailment of current passenger service, so conflict will be reserved for the expansion of commuter services New Jersey Transit has planned, particularly in northern New Jersey.

For instance, CSX expects its freight business to need all the capacity on the West Shore line. But New Jersey Transit has plans to expand service in that area, and the agency bought some right of way along the route in 1978.

The conflict has its roots in the early 70's, when half a dozen freight companies went bankrupt. The Federal Government stepped in, creating Conrail in 1976. For 11 years it operated the company, selling off any "extra" land and rights, a downsizing that railroad watchers now groan over, since it would be prohibitively expensive, if not physically impossible, to reclaim those resources.

"Once you have people building pools in the old right-of-way, it becomes pretty hard to get it back," said Douglas Bowen, president of an advocacy group called the New Jersey Association of Railroad Passengers.

In 1987 the Government sold Conrail to the private sector, so when CSX and Norfolk Southern signed an agreement last year to pay more than $10 billion for it, they were making an ordinary business deal, in which the first priority is turning a profit.

Norfolk Southern has a reputation for accommodating passenger service, according to Mr. Bowen. On the other hand, he said, CSX "has a reputation for being notoriously anti-passenger rail."

"I don't want to say it doesn't play fair, because it's their railroad, they can do what they want," Mr. Bowen added. But some would call their approach downright hostile."

CSX presents itself as an asset to an area that needs to make some difficult choices for its own economic vitality. For the moment, the state D.O.T. agrees. Increasing the amount of freight that moves by rail gets truck traffic off roadways and allows the region's economic strength to grow. Local imports and exports should increase, as should traffic to and from Ports Newark and Elizabeth, both say.

"The region has grown its industrial base," said Mike Brimmer, a regional vice president for CSX. "And you still have major facilities that depend on rail, like the chemical companies, the Ford plant in Metuchen, the G.M. assembly plant in Linden. And the same population that increases the demand for passenger service also increases the demands for orange juice and televisions."

Not all the passenger rail companies expect trouble. Amtrak, for instance, is positively sanguine. Rick Remington, a spokesman, said that freight on Amtrak's Northeast Corridor generally operates only between 10 P.M. and 6 A.M. and that Norfolk and CSX were already running about six more trains during those hours without creating problems.

And if a train loaded with freight could make its delivery schedule only by running during prime passenger hours?

"It's our call," Mr. Remington said. "It's our railroad."
 http://www.nytimes.com

GRAPHIC: Photo: A train in Port Reading run by Conrail, which will be split between two freight companies in March. (Marilynn K. Yee/The New York Times)(

LOAD-DATE: January 10, 1999




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