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CED-79-45 1 (1979-04-02)

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REPORT BY THE

Comptroller General


6, OF THE UNITED STATES


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Information On Questions About
Conrail's Track Abandonment Program






Conrail has not abandoned any rail lines to
date, even though it considers several lines
unprofitable. Conrail informed the Interstate
Commerce Commission on November 30,
1978, that it would defer abandoning any
active rail lines for 1 year to allow the Gov-
ernment to consider changing the way it reg-
ulates the rail industry.

GAO found that the methods Conrail used to
identify branch lines for potential abandon-
ment were reasonable. Also, Conrail's system
for accumulating costs and revenues on its
study lines provided auditable data and
conformed to the Interstate Commerce Com-
mission's format for supporting abandonment
applications. Conrail does not estimate the
social and economic costs and benefits of a
proposed abandonment. However, the Com-
mission recognizes such factors in deciding
whether to approve an abandonment.


This information was requested by the Sub-
committee on Government Activities and
Transportation, House Committee on Govern-
ment Operations.





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   CED-79-45
APRIL 2, 1979


1092-79


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