CONRAIL'S RUMSEY TO JOIN NORFOLK SOUTHERN

NORFOLK, VA - Norfolk Southern Corporation (NYSE: NSC) today announced that Raymond J. Rumsey, chief engineer - Roadway Assets for Conrail, will join Norfolk Southern effective April 1.Rumsey will be named to the position of chief engineer - Maintenance Services, based at Atlanta, and will be responsible for certain maintenance-of-way support groups and shops. He will report to Gary Woods, assistant vice president - Maintenance of Way and Structures.A 20-year Conrail employee with experience in the transportation and engineering departments, Rumsey started as a management trainee and served in positions of increasing responsibility, including division engineer at three locations. Prior to his current position, he was a district superintendent.Rumsey is a graduate of Lafayette College. He is a member of the National Society of Professional Engineers, the Pennsylvania Society of Professional Engineers and the American Railway Engineering and Maintenance Association. -Norfolk Southern

NY/NJ PORT AUTHORITY REACH AGREEMENT WITH NS AND CSX

The Port Authority of New York and New Jersey announced March 19 an agreement with Norfolk Southern and CSX that it said "satisfies agency concerns about rail freight service to the Port after the railroads acquire Conrail routes and assets."

A news release distributed by the Port Authority said "the bistate agency has had specific concerns throughout negotiations with NS and CSX: that shippers throughout the region would receive the greatest possible benefits of competitive rail service; that there would be sufficient rail capacity to meet the needs of shippers and consumers; that the railroads make sufficient capital investments to allow for future growth; and that the transition be smooth, with as few operational disruptions as possible.

"Richard Lobron, deputy executive director of the Port Authority, said that the railroads' operating plan can result in significant improvements in the region's rail freight system," the release said. (For more reaction to the announcement, see 'Quotable'.)

"In addition," the release noted, "the agreement...provides that executives of the Port Authority and railroads will meet regularly, and that the railroads will provide operating and capital data to the Port Authority so it can monitor operations and investments. The Port Authority agrees to support the joint CSX/Norfolk Southern application before the U.S. Surface Transportation Board, and the railroads agree that the Port Authority has standing to seek changes before the STB."

The release also said the Port Authority "argues that operational capacity must be adequate for the needs of the new rail freight system. More freight trains will be operating in the system than were operating under Conrail. The Port Authority wants to ensure that rail facilities can provide smooth service, and that capacity expands to accommodate future growth."

First Implementing Agreement Signed: On March 13, the United Railway Supervisors Association general committee representing claim agents employed by Conrail signed an implementing agreement with NS, CSX and Conrail. The agreement provides for the coordination of work and the selection of forces between NS and CSX following STB approval of the transaction.

IMPLEMENTATION COUNTDOWN

STB hears oral arguments, June 4, 1998

STB votes on application, June 8, 1998

STB publishes its written decision, July 23, 1998

the effective date of the STB decision and the Control Date, Aug. 22, 1998

"Day 1," the hypothetical Closing Date for NS planning purposes, Sept. 1, 1998

QUOTABLE

From a news release distributed March 19 by The Port Authority of New York and New Jersey:

"The Port Authority has argued for many years that rail freight customers in the region deserve the benefits of competitive rail service. We made those concerns clear to Norfolk Southern and CSX. We support this agreement because we believe it creates a framework for monitoring rail operations and resolving issues that may arise. We look forward to continuing the positive relationship that we have established with the railroads in recent months. It is our goal that this transaction be successful." - Robert E. Boyle, Port Authority executive director

Characterizing the agreement as "an important step forward for the Conrail transaction," David R. Goode, NS chairman, president and chief executive officer, said, "This agreement is particularly gratifying in that it recognizes our mutual goal of strengthening the nation's safe, efficient, competitive freight rail system. We look forward to working closely with the Port Authority as this new era in rail transportation unfolds."

"We are deeply committed to addressing any and all concerns Port officials and shippers may have regarding rail operations following the acquisition of Conrail. Both CSX and NS share the Port's goal of fully achieving the benefits of competitive rail service and economic development promised by this transaction. This agreement helps create a forum for the exchange of ideas, resolution of issues and implementation of programs to make the Conrail acquisition a great success." - John W. Snow, CSX chairman, president and chief executive officer.

"For the first time in many years, the region will have competitive rail service. There is a potential for improvements in service and pricing that will boost the economies of New York and New Jersey." - Richard Lobron, Port Authority deputy executive director.

CONRAIL HERITAGE

Among relics of American transportation preserved and displayed in the Smithsonian Institution at Washington, D.C., is a famous steam locomotive - the "Pioneer" - of the Cumberland Valley Railroad, a Conrail predecessor line. One of several engines with a single pair of driving wheels (the "Jenny Lind" and the "Nicholas Biddle" were two others), the "Pioneer" was built by Seth Wilmarth of Boston. It was used in regular service until 1880, then in construction service until 1890, when it was retired. - Norfolk Southern

CONRAIL SD80MAC-TRACK

Delaware - Lackawanna's ex-Canadian Pacific M-636 #4743 was picked up by NYS&W Local BH-1 at StL&H's East Binghamton Yard at 15:00 ET yesterday. The engine was turned at BD and is facing east. Unit was assigned to SU-100 after arrival at Binghamton. Power on BH-1 (and for outbound SU-100) was CP SD40 5555/CP SD40-2 5623 and D-L M636 4743. It looks like they are going to run the SD45 3612 as the trailing (4th) unit on the train. The NYS&W also had GP38 2012 and C430 3000 on hand at Binghamton (two Alc's in Bingo!). SU-100 power will turn on Friday's westbound 555 (Syracuse), due out between 10:00 p.m. and Midnight, depending on how Sealand is loading. Tough to predict after that.

Just to add to this St.L&H train #556 arrived in Binghamton at 1640 hrs with CPRS 5652/CPRS 5610/CP 4216/CP 4235 (two more Alc's).-S.J.Botts, Mike Del Vechio