Concerned by the precipitous decline of railroads in the Northeastern United States, the federal government responded by creating the Consolidated Rail Corporation (
Conrail) in 1976. The new company inherited the lines of Penn Central with an agenda to turn around several decades of decline, neglect, and unprofitable operations. Despite also being bankrupt, the B&M opted out of inclusion within Conrail and continued as an independent company.
Pan Am Railways, originally known as Guilford, was formed in 1981 by
Timothy Mellon. Mellon's new company purchased the Maine Central in 1981, the Boston & Maine in 1983, and the
Delaware and Hudson in 1984. The company also took control of a number of routes that Conrail wished to sell. With these purchases, Guilford became the largest railroad in New England. This was not for long however, as the company struggled with unprofitable lines and disputes with labor, leading to many lines being abandoned. By 1988, half of the Maine Central's lines were abandoned. is the largest railroad in Vermont.
States begin to purchase rail lines The state governments of New England began to get directly involved in supporting and preserving rail service, in some cases purchasing railroad lines outright to save them from abandonment, convert them to
rail trails, or to allow for upgrades. In 1971, the state of Connecticut leased its portion of the
New Haven Line from Penn Central, along with its three branches, before purchasing it outright in 1985. Massachusetts purchased a number of railroad lines from freight operators for commuter rail service under the
MBTA, beginning in the 1970s. is one of many shortlines that were created to operate lines spun off from Penn Central or Conrail.|left Several railroad lines mismanaged and abandoned by Guilford were purchased by states to preserve their use: in Connecticut, two abandoned Guilford lines were bought by the state and went to the
Central New England Railroad in 1995, and another to the
Naugatuck Railroad in 1996. Maine purchased the
Rockland Branch and a branch between
Brewer and
Calais in 1987 when Guilford abandoned them, followed by the
Mountain Division in 1994. began to assume the operation of commuter rail services in and around Boston in the 1970s. MBTA trains are pictured here at
North Station in 1988.
Passenger rail Most passenger rail service was assumed by federally created
Amtrak in 1971, although Penn Central continued to operate some commuter rail service in the Boston region and along the Northeast Corridor. Amtrak launched two new trains in the 1990s, including the
Vermonter in 1995, and the
Ethan Allen Express in 1996.
Heritage railroads In light of the quickening pace of abandonments across New England, a number of organizations formed to preserve railroad lines and commemorate railroad history. A few examples are the
Valley Railroad, formed in 1971; the
Conway Scenic Railroad, formed in 1974; the
Hobo Railroad, which began in 1986; and the
Naugatuck Railroad, which started operations in 1996. == Passenger rail improvements, CSX, shortline consolidation (1999–present) ==