Canadian National Railway's purchase of the EJ&E Railway, which would triple rail traffic through some area towns and cities, may be approved by federal regulators as early as April 25.
That is alarming mayors, town councils and others in Indiana and Illinois, eight of whom already have told the federal Surface Transportation Board they will be weighing in on CN's proposal.
"The city of Gary has no clear statement of impact to the city of Gary," Planning Director Christopher Meyers told a CN representative Tuesday. "When will that happen? When will we know the impact to our airport, to downtown development and lakefront development?"
CN representative Kevin Soucie tried to allay fears Tuesday at a meeting of the Northwestern Indiana Regional Planning Commission, a council of more than 50 local governments.
There will be "tremendous" benefits to Gary because of expanded business at Kirk Yard, Soucie said. In addition, CN will be sending engineers and environmental experts to communities to work on individual problems.
"Our goal is to expedite everything, so people can realize the benefits of the transaction," Soucie said.
Canadian National has taken part in negotiations on moving the EJ&E tracks that are blocking airport expansion, even though it does not yet own them, Soucie said.
In addition, CN engineering staff and South Shore officials are working to determine if CN rights-of-way between Munster and Valparaiso can be used by the commuter railroad, Soucie said.
The EJ&E has 198 miles of mainline tracks running from Waukegan, Ill., to Gary, all by way of Chicago's suburbs. CN has 20,300 miles of track in eight Canadian provinces and 16 U.S. states, with 77 percent of its revenue coming from U.S. operations.
In late September, CN announced it had an agreement to buy the bulk of the EJ&E for $300 million, leaving a small portion of the railroad in the hands of current owner U.S. Steel Corp.
The goal is to keep CN trains off congested tracks and streets in Chicago and moving around the city on the EJ&E's tracks, Soucie said.
Politicians also are weighing in on CN's proposed purchase of the EJ&E, lining up for and against the proposal. Those representing Chicago support the plan because it would relieve rail traffic in the city. Those representing Chicago's suburbs and Northwest Indiana are expressing concern.
"In Lake County, Indiana, the Elgin, Joliet and Eastern Railway Company has 118 at-grade highway rail crossings," wrote U.S. Rep. Pete Visclosky, D-Ind., in a Nov. 8 letter to the Surface Transportation Board. "Many of these at-grade crossings are located in heavily populated areas of the county and already cause considerable delays in public and commercial traffic."
Both Visclosky and U.S. Sen. Richard Lugar, R-Ind., asked the transportation board to classify CN's purchase of the EJ&E as a "major transaction," which would have subjected it to even more stringent and lengthy review.
The transportation board rejected that request, ruling that it will honor the railroad's request to treat it as a "minor transaction."
However, CN first will have to prepare a lengthy environmental impact statement, detailing the effects of increased rail traffic on EJ&E tracks, the transportation board ruled.
CN's own filings in the case show a threefold increase in traffic on EJ&E tracks through Dyer, Schererville, Griffith and other communities. The number of trains going through communities such as Munster and Lansing, which currently handle mainline CN traffic into Chicago, will decrease.
Under the schedule laid out by the transportation board on Nov. 26, those who want to comment as a party of record have until Thursday to inform the board. They will have until Jan. 28 to file comments on the transaction. The railroads and others will have until March 13 to respond.
In Northwest Indiana, the towns of Merrillville, Griffith, Munster and Dyer already have told the transportation board they will be filing comments. The South Shore's operator, Northern Indiana Commuter Transportation District, also has told the board it will participate in the proceeding.
A number of municipalities in Illinois, as well as chambers of commerce and municipal associations, have done the same.
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