What's next
CN's proposed purchase of the EJ&E must win approval from the Surface Transportation Board to be finalized.
The more than 100 parties that have filed notices of intent to participate have until Jan. 28 to file comments and evidence with the SBT opposing the purchase. Those supporting the transaction will have until March 13 to file comments rebutting the protests.
In addition, the SBT will outline the process for examining the environmental aspects of the proposed purchase at its Web site and in the Federal Register in the next week. In mid-January, the SBT will have "open house meetings" in the region where SBT's environmental specialists will be available to discuss the project. Members of the public will also be able to submit written comments.
Source: Surface Transportation Board
Canadian National Railway CEO E. Hunter Harrison is rallying support for his railroad's planned acquisition of the EJ&E Railway, in advance of public meetings to be hosted by federal regulators in January.
Harrison said the broader benefits of the proposed purchase for the Chicago region are getting lost in the public debate over adverse impacts in some communities along the EJ&E.
"The merits of our EJ&E transaction are compelling for commerce, transportation efficiency and the environment of the greater Chicago region," Harrison said.
U.S. Rep. Pete Visclosky, D-Ind., has been a vocal critic of the deal, saying both CN and the EJ&E continue to block major economic development projects in Northwest Indiana. Specifically, Visclosky says the EJ&E has not offered enough cooperation on expanding Gary/Chicago International Airport and CN has not helped with the South Shore commuter rail expansion.
"The intent of Congressman Visclosky is to be deeply involved with this throughout every minute step in the process," Visclosky spokesman Justin Kitsch said Thursday.
Harrison's attempt to rally support comes after more than 100 parties, including towns and cities in Northwest Indiana and Chicago's suburbs, have filed notices they will be submitting comments on the proposal.
The CEO's push also comes four weeks after the federal Surface Transportation Board ruled an environmental impact statement must be prepared before the transaction can close. This is believed to be the only time the STB has required such an examination since one was required for the Conrail breakup in the mid 1990s.
The STB cited the addition of 9,695 carloads per day on EJ&E tracks and an almost 100 percent increase in traffic at Gary's Kirk Yard in calling for the environmental impact statement.
Examining the environmental impacts of the CN/EJ&E transaction will give the public the chance to comment on grade-crossing safety, air pollution, emergency response, noise, vibration and other issues, according to the STB.
A schedule for commenting has not been set, but the STB promises to have "open house meetings" in the region in mid-January.
Many communities, such as Schererville and Dyer, would see rail traffic on EJ&E tracks increase threefold if the transaction goes through. Chicago and some communities, such as Munster, would see significant decreases in rail traffic. Officials in those communities are lining up in support.
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.
Harrison in a prepared release on Thursday listed what CN considers the community benefits of the transaction. In Chicago, those would include cutting rail congestion, reducing air pollution and boosting a program, which aims to eliminate dozens of rail crossings in the city.
It also would enable CN to vacate the St. Charles Air Line in time for the 2016 Olympic Games, if they take place in Chicago.
Canadian National plans to send engineers and environmental staff to begin working with communities on grade crossing and environmental concerns in January, according to Mark Hallman, director of communications for CN's eastern region.
"We have already been active in outreach," Hallman said. "Now we will take it to the next step. We are eager to have this dialogue with communities."
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