(CN issued the following on December 3.)
WASHINGTON, D.C. — CN announced today an agreement with Amtrak that will ensure Amtrak continued, cost-effective access to the St. Charles Air Line route for its passenger trains between Chicago’s Union Station and downstate Illinois destinations such as Carbondale and Champaign. The agreement is based on commitments CN made to Amtrak and the Surface Transportation Board (STB) earlier this year.
Under the agreement, Amtrak may remain indefinitely on this route should the STB approve CN’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E). In addition, CN would continue to maintain the route and Amtrak’s access to that route to existing standards, and cap the cost to Amtrak for using the portion of the Air Line route where it could eventually become the sole user at the current level, indexed for inflation.
E. Hunter Harrison, president and chief executive officer of CN, said: “This agreement reflects determined efforts by CN and Amtrak to reach common ground on operational changes that would flow from the EJ&E transaction. By safeguarding Amtrak’s access to CN’s network between Chicago’s Union Station and points south in Illinois, CN is recognizing the needs of intercity passenger rail in the region and demonstrating again its commitment to a comprehensive voluntary plan to mitigate the impact of the EJ&E acquisition on community stakeholders.”
As a result of today’s agreement, Amtrak and CN will soon request that the STB impose the various requirements outlined in the agreement as conditions to any approval of the EJ&E transaction. Amtrak will also notify the STB that it is withdrawing its earlier opposition to the transaction.
CN is urging the Board to proceed quickly with a final decision on the proposed EJ&E acquisition to allow the transaction to close by the Dec. 31, 2008, deadline set by the parties to the purchase agreement.
Harrison said: “We hope that the resolution of Amtrak’s concerns will help the STB expedite its overall review to that end.”