RAILROADS: New Coupling On the Rails

New Coupling On the Rails

The idea of a railroad as small as the Denver & Rio Grande Western (2,500 miles of track) trying to swallow one as big as the Southern Pacific (13,000 miles) conjures up memories of the Little Engine That Could. Yet the Rio Grande has emerged as the front runner in a heated competition to acquire Southern Pacific.

Four years ago Southern Pacific agreed to merge with the Santa Fe railroad to form what would be the second largest U.S. line, after Burlington Northern (25,500 miles). The Interstate Commerce Commission, though, ruled that the combination stifled competition and that the new Santa...

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