Post-Tribune staff report
The U.S. Surface Transportation Board today unanimously approved the Canadian National Railway Co. and Grand Trunk Corp. application to acquire control of the Elgin, Joliet & Eastern Railway, subject to a number of federal conditions.
U.S. Steel Corp. in Gary, the indirect owner of EJ&E, announced plans for the sale in 2007, subject to federal approval. The sale price was $300 million.
CN has signed mitigation agreements with the towns of Griffith, Dyer and Schererville and seven Illinois communities. Those agreements will cost the railroad more than $60 million.
STB Chairman Charles D. Nottingham said the merger would alleviate rail and highway congestion.
"I am pleased that the board agreed, in a bipartisan and unanimous manner, after an unprecedented public involvement process, to grant the relief that this merger will provide to the many Chicago neighborhoods that have been disproportionately burdened for many decades with severe rail traffic-related roadway congestion," said Nottingham.
In considering the transportation aspects, the STB found the transaction will not result in a substantial lessening of competition, the creation of a monopoly, or a restraint of trade in freight surface transportation in any region of the U.S.
The STB did recognize the sale will trigger adverse environmental impacts on communities along the EJ&E rail line.
After carefully considering the results of the environmental analysis and the comments raised - both pro and con - the board imposed substantial environmental mitigation to minimize potential adverse environmental impacts of the transaction.
The mitigation includes two highway-rail grade separation projects, cameras to monitor highway-rail crossings, school an pedestrian safety measures and noise reduction measures.
In addition, the STB imposed a 5-year, formal oversight period, with applicants required to submit monthly operational reports to the board.