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DELAWARE & HUDSON RAILWAY EXERCISES OPTION TO PURCHASE CONRAIL'S SOUTHERN TIER LINE

 DELAWARE & HUDSON RAILWAY EXERCISES OPTION
 TO PURCHASE CONRAIL'S SOUTHERN TIER LINE
 PHILADELPHIA, March 6 /PRNewswire/ -- Consolidated Rail Corporation (NYSE: CRR) (Conrail) and Delaware & Hudson Railway Company (D&H) announced today that D&H has exercised its option to purchase Conrail's Southern Tier Line between Binghamton and Buffalo, N.Y.
 The option granted to D&H by Conrail on Dec. 13, 1990, includes the branch lines serving Alexander and Bath, as well as industrial trackage at Binghamton, Elmira and Corning.
 Under the terms of the agreement between Conrail and D&H, a definitive asset purchase agreement now must be negotiated after which approval of the sale by the Interstate Commerce Commission must be obtained.
 "We are pleased that D&H has chosen to exercise its option and we are hopeful that a definitive agreement will be reached," said Charles N. Marshall, Conrail's senior vice president-development.
 "We look forward to a successful conclusion to the negotiations," said Gil Mackie, president of D&H Railway and executive vice president of CP Rail System, "and to welcoming customers along this line to the service provided by the transcontinental CP Rail System."
 The sale, if consummated, would result in a reversal of the owner- tenant relationship on the line. D&H has used the line on a rental basis since Conrail's formation on April 1, 1976, and has become a larger user of the line than Conrail on many of the segments involved. Conrail will continue to operate over the line after its sale.
 If a final agreement is reached, Conrail and D&H will seek ICC approval of the transaction under the Interstate Commerce Act. Such approval, if granted, will result in application of the so-called "New York Dock" labor protection provisions for employees directly affected by the sale.
 /delval/
 -0- 3/6/92
 /CONTACT: Robert L. Libkind of Conrail, 215-977-4594, or John Cox of CP Rail, Toronto, 416-863-8196/
 (CRR) CO: Consolidated Rail Corporation; Delaware & Hudson Railway Company ST: Pennsylvania, New York IN: TRN SU:


JS -- PH022 -- 5974 03/06/92 15:58 EST
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Publication:PR Newswire
Date:Mar 6, 1992
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