FORMAL control of the Consolidated Rail Corp passed to CSX and Norfolk Southern on August 22, a statutory 30 days after the Surface Transportation Board issued its written approval of the merger on July 23. With effect from this ’Control Date’, Conrail’s stock was removed from its holding trust, allowing CSX and NS to exercise their ownership rights.
Conrail will operate as a unified business until the ’Closing Date’ at which point the network and assets will be divided between the two new owners. This date will only be decided when CSX and NS feel ready to integrate the acquisition with their existing businesses, which is now expected to take place in the first quarter of next year. To aid the separation, Conrail assets are being allocated to the former Pennsylvania Railroad and New York Central Railroad, which have been revived as NS and CSX subsidiaries respectively.
Following the Closing Date, Conrail will continue to exist in order to operate the three Shared Asset Areas in Detroit, southern Pennsylvania and New Jersey. It will become an ’operating agency’, with all marketing, sales and customer relations handled by the parent companies. o