(The following story by Keith Benman appeared on the Munster Times website on April 29.)
MUNSTER, Ind. — Federal regulators are set to closely scrutinize Canadian National Railway’s purchase of the EJ&E Railway, which could triple freight traffic in some suburban communities.
In a recently issued decision, the federal Surface Transportation Board laid out what issues it will consider in preparing an environmental impact study on the purchase. That study in turn will be used by the three-member board to issue a final decision on the rail merger.
The decision rendered last week lays out a two-year time frame for the board to reach its final decision. CN had hoped to close the $300 million deal by the middle of this year. It announced it had an agreement to purchase the EJ&E in September.
At the beginning of this year, CN’s chief executive, E. Hunter Harrison, acknowledged the process had been slowed but still expressed hope the Surface Transportation Board could render a decision within one year.
The EJ&E has 198 miles of mainline tracks running from Waukegan, Ill., to Gary, all by way of Chicago’s suburbs. CN plans to shift much of the freight traffic it now runs through Chicago to the EJ&E tracks.
The Surface Transportation Board has scheduled a meeting for towns and cities for 2 p.m. Wednesday at the Country Inn & Suites, 1630 Olmstead Drive, Portage. The board conducted more than half a dozen public meetings on the scoping study in Illinois and Northwest Indiana in December and January.
U.S. Rep. Pete Visclosky, D-Ind., was studying the decision as of Monday, according to spokesman Jacob Ritvo. Visclosky is on record opposing CN’s purchase of the EJ&E.
“It looks like the STB is really going to scrutinize this deal,” Ritvo said.
The rest of last week’s Surface Transportation Board decision was a mixed bag, some of it favoring communities and some favoring the railroad.
The environmental impact study will look at a number of issues at rail crossings, including delays for motorists, air pollution and noise and vibration.
The report notes that the grade-separated crossings, which many communities would like to see built, primarily would benefit communities and not the railroad. Because of that, the costs of such projects typically are borne by communities.
The decision stipulates the expansion of the Gary/Chicago International Airport, which is currently blocked by EJ&E tracks, will be examined as part of the environmental impact statement.
On the subject of the South Shore, the decision notes the Northern Indiana Commuter Transportation District currently has no funding secured for its West Lake extension to Valparaiso and Lowell. It also notes the South Shore has not studied alternatives to using Canadian National right of way for the extension.
But it still stipulates that an “appropriate discussion of the NICTD operations will be included in the environmental impact statement.”