Canadian National purchase could triple railway business at Gary's Kirk Yard

Times of Northwest Indiana

Canadian National Railway's plan to purchase the EJ&E would triple business at Gary's Kirk Yard, which would see more than 2,000 freight cars a day coming in and out.

On Wednesday, CN filed its application for the purchase with the federal Surface Transportation Board, which contained information on its plans for rerouting trains out of Chicago onto the EJ&E tracks.

The increase in business would make Kirk Yard one of two major U.S. hubs for CN. The other is in Memphis.

On Tuesday, U.S. Rep. Pete Visclosky, D-Ind. said he would oppose the plan due to the "track record" of both railroads in holding up important public projects in Northwest Indiana. Visclosky wants more railroad cooperation in moving tracks to make way for the Gary/Chicago International Airport expansion and the South Shore West Lake extension.

CN has an agreement to buy most of the EJ&E's assets from U.S. Steel for $300 million, including the entire loop around Chicago. It would rename that railroad the EJ&EW West Co.

CN, which derives 77 percent of its revenue from business in the United States, is touting the plan's benefits for Chicago, which would see less rail congestion and less pollution from trains and trucks.

"The EJ&EW transaction would promote the public interest in a more efficient and reliable rail transportation system and would have no adverse competitive or safety effects,"  stated CN Chief Executive Officer E. Hunter Harrison in Tuesday's filing.

The EJ&E will provide CN with the "missing link" to connect CN's five lines entering Chicago, according to a prepared release from the railroad.