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CSX, Norfolk Southern Dispute $9.6 Million

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CSX and Norfolk Southern are fighting over Conrail — again.

Seven years after the two railroad companies engaged in a nasty bidding war for the northern freight lines of Conrail Inc., CSX Corp., which has a major hub in Richmond, filed a $9.6 million lawsuit against Norfolk Southern Corp.

CSX's complaint, charging a breach of contract, was filed in Richmond Circuit Court in late July and then withdrawn Aug. 19, court records show.

The two parties agreed to settle the matter in arbitration, a Norfolk Southern spokesman says. Officials at CSX didn't return phone calls by press time.

After CSX and Norfolk Southern agreed to split up Conrail in April 1997, the two companies entered into a series of agreements and contracts over who owns what. One of the agreements, officially made in 1999, involved an amount of shop materials and equipment originally owned by Conrail — $9.6 million worth — for which CSX claims it hasn't received compensation.

In an accounting mix-up that involved a "swap" of Conrail assets, CSX claims Norfolk Southern improperly received compensation for the inventory, which is located at two repair shops in Pennsylvania. — Scott Bass



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