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CONRAIL TO RETAIN SOUTHERN TIER LINE; UNDERTAKES $7 MILLION UPGRADE INSTEAD OF SALE TO CANADIAN PACIFIC

CONRAIL TO RETAIN SOUTHERN TIER LINE; UNDERTAKES $7 MILLION UPGRADE
 INSTEAD OF SALE TO CANADIAN PACIFIC
 PHILADELPHIA, July 2 /PRNewswire/ -- Consolidated Rail Corporation (NYSE: CRR) (Conrail) said today it will invest $7 million to improve service on its Southern Tier Line between Binghamton and Buffalo, N.Y., and retain the line rather than selling it to the Delaware and Hudson Railway Company unit of the CP Rail System.
 Today's announcement was prompted by the need to invest capital funds in the line to preserve service and by CP's repeated efforts to change the terms of the sale.
 Conrail had granted D&H an option to purchase the line in December 1990. D&H exercised that option in March, but the parties were unable to reach an agreement.
 While expressing disappointment, Conrail said it did not want the collapse of the talks to create customer confusion.
 "Our customers on the line and those who care about its future should understand this decision to be a firm signal of our resolve to let nothing stand in the way of providing high-quality service," said Charles N. Marshall, Conrail's Senior Vice President-Development.
 "This investment does more than preserve the status quo," said Marshall. "We think it will enable us to improve service."
 D&H retains trackage rights over the line as it has since April 1976. In addition, Conrail will cooperate with D&H's expressed desire to increase clearances along the route.
 Conrail operates a rail-freight transportation network in 14 Northeastern and Midwestern states, the District of Columbia, and the Province of Quebec.
 /delval/
 -0- 7/2/92
 /CONTACT: Robert L. Libkind or Andrea L. Just of Conrail, 215-977-4594/
 (CRR) CO: Consolidated Rail Corporation; Delaware and Hudson Railway Company ST: Pennsylvania IN: TRN SU:


JS -- PH007 -- 6074 07/02/92 10:15 EDT
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Publication:PR Newswire
Date:Jul 2, 1992
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