GARY || Canadian National Railway's plans to purchase the EJ&E Railway could complicate efforts to move railroad tracks to make way for expansion of the Gary/Chicago International Airport.
However, both railroads are pledging to honor any pre-existing agreements with the airport.
"We will continue to work with the airport and go forward with what we've agreed to," said John Armstrong, a spokesman for EJ&E owner U.S. Steel Corp.
U.S. Steel will keep Canadian National informed about the negotiations, Armstrong added.
CN spokesman Jim Kvedaras said the railroad will "honor the spirit" of any agreements and discussions the EJ&E has had with the airport.
However, that agreement remains only an "agreement in principle," with no signed pact yet between the airport and the EJ&E and two other railroads involved -- that despite more than year of negotiations.
The EJ&E tracks sit 130 feet due west of the airport's main runway and have to be moved in order to expand the main runway to 8,900 feet. Airport officials have said they would like the tracks moved as soon as possible, as the tracks and the trains traveling over them represent a potential hazard for aircraft.
They also have to be moved before construction can begin on the longer runway.
Airport officials could not be reached for comment Wednesday.
CN is offering $301 million for the EJ&E, which has 198 miles of track stretching from Waukegan, Ill., to Gary. The boards of directors of both railroads have approved the deal.
It could close by mid-2008, if it wins federal approval, according to CN Chief Executive Officer E. Hunter Harrison.
However, part of the plan entails increasing traffic and business at Gary's Kirk Yard. The EJ&E tracks at the end of the runway are one access point to that rail yard, which is part of the sprawling U.S. Steel Gary Works.
Kvedaras said more details of CN's plans will be spelled out in a document to be filed soon with federal regulators.
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