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Conrail's Attempts To Improve Its Use of Freight Cars

CED-78-23 Published: Jan 24, 1978. Publicly Released: Jan 24, 1978.
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Highlights

The Consolidated Rail Corporation (Conrail) began operating important sections of six railroads in the Northeast in April 1976 under a reorganization plan known as the Final System Plan. This plan was developed by the U.S. Railway Association and approved by Congress in November 1975. It provided for Government investment in Conrail of up to $2.1 billion through the end of 1979 by the purchase of stock and debentures. The plan included financial projections through 1985 that Conrail would begin to make a profit by 1979 and would remain profitable through 1985. The plan shows that, to make a profit by 1979 and remain profitable thereafter, Conrail would need to greatly improve its rate of use of freight cars over its predecessors' 1973 rate. A projected 28 percent improvement would save Conrail $1 billion in capital expenditures through 1985 because 26,000 new freight cars would not be needed.

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Federal aid to railroadsFinancial managementFreight transportationFunds managementProjectionsRailroad industrySecuritiesTransportation industryFreight trainsFreight