BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com
The region's largest steelmaker wants questions answered on how it will ship 5 million tons of steel products once Canadian National Railway buys the EJ&E Railway.
ArcelorMittal wants to compel testimony from the EJ&E on 28 points, ranging from what rates will be charged to general railroad operating plans, according to a Jan. 28 filing with the federal Surface Transportation Board. It also has been in talks with CN on many of the same points.
The EJ&E, which is owned by ArcelorMittal competitor U.S. Steel Corp., on Jan. 24 responded it is not a party to the proposed transaction and does not have to answer the rival steelmaker's questions.
U.S. Steel officials did not return a call Monday seeking comment.
Since Canadian National announced in September it had an agreement with U.S. Steel to buy most of the EJ&E for $300 million, public controversy over the plan has centered mostly on how it would affect local communities.
But the ArcelorMittal filing highlights how the proposed transaction also will have a big effect on businesses. The giant steelmaker employs 6,000 workers at its Indiana Harbor operation, which would be directly impacted by the change in rail ownership.
The mills at Indiana Harbor ship out 5 million tons of steel products per year by rail and receive 2 million tons of raw material by the same means, according to a Jan. 28 filing.
The EJ&E is a 198-mile rail line that circles Chicago and serves chemical, steel and other industrial companies. Some EJ&E customers have filed comments in favor of the acquisition, including A&R Transport Inc., of Morris, Ill., and Behr Iron and Steel Inc., of Rockford, Ill.
ArcelorMittal alleges CN's application with the Surface Transportation Board contains plenty of information on how the merger will affect international rail operations "but lacks any specifics with regard to Chicago-area operations."
"This speaks volumes about CN's interest and future focus and, in stark contrast, its lack of interest in or focus on local rail customers such as ArcelorMittal," the Jan. 28 filing states.
CN officials did not return a call Monday seeking comment.
The steelmaker's motion to compel testimony is among a blizzard of filings in the case, as towns, cities, environmental groups and businesses hurry to beat looming deadlines on filing comments.
The deadline for filing comments with the federal Surface Transportation Board on the economic and competitive aspects of the deal was Jan. 28. Responses and rebuttal to those comments can be filed until March 13.
The deadline for filing comments on the merger for the scope of a draft environmental impact statement has been extended to Feb. 15. The deadline originally was last Friday.
The preparation of a final environmental impact statement could take a year or more, and the Surface Transportation Board has said it will not issue a final decision on the rail merger until that is complete.
The Gary/Chicago International Airport also weighed in with a filing Jan. 24, accusing the EJ&E of years of stonewalling its effort to move rail tracks that obstruct its main runway.
In recent negotiations, the EJ&E has "requested reimbursement in perpetuity for additional fuel used for their trains to traverse the 5,263 feet of additional track in the relocations plan," according to the airport authority's filing.
CN officials in the past have said they already are actively negotiating with the airport on moving the tracks.
The Northwestern Indiana Regional Planning Commission also has filed a protest. NIRPC says the CN purchase of the EJ&E will impede the extension of the South Shore commuter railroad, the expansion of the Gary airport and set back progress made in meeting federal Clean Air standards.