EJ&E purchase by Canadian National snagged by questions

BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com

Gary/Chicago International Airport has received a 15-page list of questions from Canadian National Railway on the airport's opposition to its proposed purchase of the EJ&E Railway.

The list of questions appears to be the latest salvo in stalled negotiations to move the EJ&E tracks, which sit on an embankment 130 feet from the northwest end of the airport's main runway. The airport wants to relocate the tracks in order to extend the runway.

"They've declared war," said Paul Karas, an airport consultant working on the project. "They want to kill the airport."

Karas was airport administrator for six years before stepping down in 2006. Negotiations on moving the tracks started during his tenure.

Airport director Chris Curry said CN's lawyers later called to clarify the questions were sent in order to help CN respond to the airport's filing with the federal Surface Transportation Board.

The airport has filed comments with the board opposing the proposed purchase, because it will delay airport expansion plans.

The railroad has said it is willing to work with the airport on any plans to move the tracks. It has been participating in negotiations as an interested party since last year. In addition to the EJ&E and CN, the move also involves CSX Corp. and Norfolk Southern Corp.

U.S. Rep. Pete Visclosky, D-Ind., and Sens. Richard Lugar, R-Ind., and Evan Bayh, D-Ind., also have filed comments opposing the sale, with the federal board. All three have cited safety concerns, possible stalling of South Shore expansion and the situation at the Gary airport in opposing CN's plans.

In September, CN had hoped to close the transaction by the middle of this year. But the Surface Transportation Board subsequently required the preparation of an environmental impact statement, which could take a year or more.

"We can push very hard on those guys at the Surface Transportation Board," Visclosky Chief of Staff Chuck Brimmer said Wednesday.