(The Canadian Press circulated the following on December 20.)
CHICAGO — The boss of Canadian National Railway Co. (TSX:CNR) is confronting opposition in suburban Chicago to the company’s planned US$300-million acquisition of the Elgin, Joliet & Eastern Railway Co., urging a focus on “broad rail transportation efficiency and environmental benefits.”
CN chief executive officer Hunter Harrison said Thursday that the Montreal-headquartered railway is mindful of community concerns but believes debate has been too centred on potential adverse impacts on some communities rather than on public-interest benefits for the greater Chicago region.
Northwestern suburbanites fear noise, traffic jams at rail crossings and the possibility of train accidents under CN’s plan to purchase EJ&E’s lightly used rail line and ramp up traffic to relieve freight congestion inside Chicago.
The suburban route is seen as key to a plan to abandon tracks along the Chicago lakefront and in the South Loop, where freight train traffic is deplored by the city government and property developers seeking to clear the area for projects including a bid for the 2016 Olympics.
“CN’s acquisition of the major portion of the EJ&E will be the latest in a series of progressive solutions designed to improve the efficiency of its operations as well as the flow of general rail traffic through the greater Chicago area,” Harrison said.
He argued that dispersing trains along the periphery of the Chicago metropolitan area will increase the speed of commerce by cutting rail congestion in the inner core, provide increased capacity and generate environmental benefits including improved safety, reduced locomotive emissions, fewer blocked level crossings and fewer idling trains.
Harrison said CN recognizes that the transaction will require change along the EJ&E line, and in January it will start the next phase of its “community outreach program,” assigining experts to prioritize road crossing and other issues.
“CN is seeking a constructive dialogue with key stakeholders to find practical means of implementing the transaction in ways that balance the specific needs of communities with the Chicagoland’s need for a cleaner, safer environment and a more efficient rail transportation network,” he declared.
“The merits of our EJ&E transaction are compelling – compelling for commerce, transportation efficiency and the environment of the greater Chicago region.”
CN’s takeover of most of the EJ&E, announced in September, is subject to approval by the Surface Transportation Board, which has set a provisional decision date of April 25 but indicated it will conduct a full environmental impact review which could delay that ruling.
CN has said it plans to spend US$100 million to upgrade EJ&E infrastructure.