BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com
Canadian National Railway wants federal regulators to conclude their environmental review of its proposed purchase of the EJ&E Railway by Dec. 1 and grant approval by year's end.
In a filing this week with the federal Surface Transportation Board, the railroad told regulators the public controversy sparked by its proposal is no reason to delay it.
It also states opponents hope to use the process to stall the transaction "until it dies," or to make it economically unfeasible.
"We believe now that the issues have been laid out and it is time to set out a timeline with firm milestones and deadlines," Karen Phillips, CN vice president for governmental affairs, said Wednesday.
This week's CN filing gained no kudos from opponents.
"It doesn't change anything," said Jacob Ritvo, a spokesman for U.S. Rep. Pete Visclosky, D-Ind. "It is just one more thing to be opposed to."
Visclosky has submitted comments opposing the deal to the Surface Transportation Board. He cited the large number of suburban railroad crossings that would see greatly increased rail traffic as one reason for his opposition.
He also cited unresolved issues between the EJ&E and Gary/Chicago International Airport, as well as the South Shore's need for right-of-way for its West Lake extension.
In September, CN announced it had reached agreement with U.S. Steel to buy the 198-mile EJ&E Railway for $300 million. The EJ&E runs from Waukegan, Ill., north of Chicago, to Gary.
In its filing this week, CN said the deal could fall through unless approval is granted by year's end.
CN continues to meet with communities along the EJ&E's 198-mile route, Phillips said, adding the railroad would prefer to negotiate individual agreements on mitigation with communities.
Among measures being discussed are sound barriers, wetland mitigation and railroad overpasses. The railroad is prepared to spend $40 million on such measures.
So far, those discussions do not appear to be putting much of a dent in community opposition. In its filing, CN accuses communities of adopting "increasingly rigid and obstructionist approaches to discussions."
The Surface Transportation Board received more than 3,600 comments from cities, towns, businesses, politicians, individuals and others on CN's proposed EJ&E purchase. Board officials said they believe that number set a record.
The proposal has gained support from the city of Chicago, which would see a decrease in rail traffic and congestion if the EJ&E purchase goes through. Suburban communities oppose it because train traffic would double at some rail crossings and increase threefold at others.
CN in its filing makes a number of comparisons between the Surface Transportation Board's review of the EJ&E purchase and its review of the Conrail breakup more than 10 years ago.
It said the federal agency issued a final environmental impact statement in just 11 months in the Conrail case, which involved 10,500 miles of track.
The review of the EJ&E purchase has taken six months and work on preparing a draft environmental impact statement is just starting.