Manufacturing Industry
Railroad mergers stretch service web in the West.
Purchasing, August, 1994
One way to end interline service problems on the railroads: Combine the lines. That's now happened twice this summer. The big news was the merger between Burlington Northern Railroad and Santa Fe Railway that will create the nation's biggest railroad when the transaction is completed sometime next year.
That announcement was followed by a smaller aftershock less than three weeks later, when Illinois Central announced that it had agreed to purchase the Kansas City Southern Railway. The two announcements end a long period of speculation over who will become partners with whom. The next question: Will one of the western giants find an eastern partner to create a transcontinental railroad? Both mergers are subject to approval by the Interstate...
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