HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.
![handle is hein.gao/gaobaayev0001 and id is 1 raw text is:
DOCUMENT RESUME
07619 - (C2847942]
Conrail Faces Continuing Probl ,s. CED-78-17; B-16q97(5).
Cctober 6, 1978. Released Oct er 6, 1978. 57 pp. + appendix (8
pp.).
Report to Rep. John L2. Burton, Chairman, House Committee on
Governmaent Operations: Government Activities and Transportation
Subcommittee; by Elmer B. Staats, Comptroller General.
Issue Area: Transportation Systems and Policies: Railroad
Freight Transportation System (2407).
Contact: Community and conomic Development Div.
Budget Function: Commerce and Transportation: Ground
Transportation (404).
Orgarization Concerned: Department of Transportation;
consolidated Rail Corp.; United States railway issociation.
Congressional Relevance: House Committee on Government
Operations: Government Activities and Transportation
Subcommittee. Rep. John L. Burton.
Authority: Bankruptcy Act (11 U.S.C. 205). Regional Rail
Reorganization Act of 1973 (45 U.S.C. 701). Railroad
Revitalization and Regulatory Reform Act of 1976 (45 U.S.C.
801).
Federal legislation establishing the Consolit ted Rail
Ccrporation (Conrail) &uthorized Federal aBsistanca of $2.1
blliom to enable the company to become profitable by the sad of
1979. Conrail, in its latest business forecast, stated that this
amount was :ot enough and that it will need an additional $1.3
billion through 1982 to achieve financial self-sufficiency. The
United States Railway Association (USRA), in its report to the
Congress, identified problems which indicated Conraills poor
prospects for achieving self-sufficiency. Findings/Conclusions:
Conrail's forecast of profits by 1980 was based on assumptions
that contradict its past and current performance trends. It
could require substantially more than the amount appropriated
plus the additional $1.3 billion to become self-sufficient.
Although Conrail recognizei that additional moneys till be
needed for its contributions to the railroad retirement system
and to replenish the employee protection fund, its business plan
makes no specific provision for these funds. Conrail made
substantial investment in track and equipment rehabilitation,
but its improvements program for modernizing yards and terminal3
lagged because of time-consuming planning processes. It has
taken some steps to expedite improvements. among problems
experienced by Conrail were: a decline in traffic, primarily
because of poor customer service; inadequate amounts and pcor
condition of equipment received from bankrupt railroads; and a
high incidence of breakdowns, partly because of inadequate
maintenance practices. Conrail expects to achieve labor savings
as a result of a new labor agreement. The USRA found errors in
the final system plan Astimate of potential car utilization](ViewImageLocal?handle=hein.gao/gaobaayev0001&div=1&collection=&method=preview&ext=.png&size=3)