ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, September 20, 1994                   TAG: 9409230020
SECTION: BUSINESS                    PAGE: C-8   EDITION: METRO 
SOURCE: By GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium


RAILWAYS JOIN TO IMPROVE DELIVERIES

Norfolk Southern and Conrail said Monday they have begun a cooperative program that should move shipments of new cars and trucks to dealers in the Northeast faster and with less damage.

In the past, NS has delivered cars and trucks from auto plants on its lines to three locations where they were picked up by Conrail for eventual delivery in New England, New York and New Jersey. Now, the vehicles from Midwestern and Southern assembly plants are delivered to Conrail's Collinwood Yard in Cleveland.

At Collinwood, they are combined with shipments from plants on Conrail lines for direct shipment to terminals in the Northeast, where trucks take them on to local dealerships.

The railways said the factory-fresh condition of vehicles will be maintained by improving the way rail cars are switched and built into trains.

The elimination of the switching of vehicle shipments at certain NS and Conrail yards should cut transportation times on some routes by as much as 44 hours.

Assembly plants on NS lines that are linked with Conrail are: Ford/Nissan at Avon Lake, Ohio; Ford in Atlanta; Toyota in Georgetown, Ky.; Ford in Kansas City, Mo.; General Motors in Roanoke, Ind.; and General Motors in Wentzville, Mo.

Norfolk Southern's revenues from automotive shipments in 1993 were $429.5 million, accounting for 12 percent of the railroad's total freight revenues. The new transportation concept, called a joint multi-level network by the railroads, comes from Norfolk Southern's and Conrail's prior experience with trains dedicated to moving autos, the companies said in a joint statement. Since earlier this year, the network also has handled vehicle shipments to the Northeast originating on the Santa Fe Railway.

NS and Conrail, which recently have been mentioned as potential partners in a merger, have cooperated on other ventures, such as the Triple Crown intermodal service.



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