THE VIRGINIAN-PILOT 

                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: TUESDAY, June 7, 1994                    TAG: 9406070398 
SECTION: BUSINESS                     PAGE: F1    EDITION: FINAL  
SOURCE: Short 
DATELINE: 940607                                 LENGTH:

NORFOLK SOUTHERN ADDS RAILS

{LEAD} Norfolk Southern Corp. and Conrail have completed the first in a series of transactions to increase capacity on Norfolk Southern's heavily traveled corridor between Chicago and Fort Wayne, Ind., and to preserve rail freight service on portions of Conrail's Fort Wayne Line in northwestern Indiana. Last Thursday, Norfolk Southern bought from Conrail a 17.8-mile segment between Gary and Valparaiso, Ind., for $1.4 million. Norfolk Southern also plans to buy 61 miles of track between Valparaiso and Warsaw, Ind. As part of that transaction, Norfolk Southern will obtain ``trackage'' rights to operate through freight trains on the 44-mile segment between Warsaw and Fort Wayne. Philadelphia-based Conrail will continue to provide local service on that line. Norfolk-based Norfolk Southern will use the former Conrail tracks primarily for coal and other ``heavy haul'' traffic and as an overflow route for merchandise traffic.

by CNB