It seems to me that there could be value in merging and spinning off routes in a way that you get a system that end to end makes more sense. For example, a run from LA to New York via BNSF and CSX/NS former conrail. If that were to happen though, it would be best if the STB forced the spinoff of other assets to create a new viable route. I'm not sure how much of all that is really possible. I think MRL and the DM&E are in positions to create viable class ones out of spun off traffic. STB would almost have to take and active role though.
Penn Central's woes were manifold: declining industrial base in the Northeast, leading to little traffic being fought over by many roads labor unions that didn't want to even think about changes in their agreements with the RRs squabbles within management (ex-NYC vs. ex-PRR) that led to nothing being done except engage in corporate civil war deferred maintenance to locomotives, cars & track too much traffic for the shrinking traffic base, and the difficulty of scrapping, selling/leasing off same When PC declared bankruptcy back in 1970 (?date), it was massive. Could you imagine such a catastrophe if, say, a newly-formed UP+CSX were to go belly up? It would make the PC debacle look like a poot in a whirlwind.......
Seems to me I remember a dictum from my studies in biology - "diversity equals stability." From personal observation, I'd say that this applies to a lot of things in life.
