(The Associated Press circulated the following on March 4, 2009.)
CHICAGO — Canadian National Railway Co. said Wednesday it settled with the city of West Chicago, Ill., over concerns about the company’s acquisition of track from another railroad.
Canadian National said it would help create and maintain quiet zones and safety fencing along the line of the Elgin, Joliet & Eastern Railway Co., which it acquired on Jan. 31 for $300 million.
The EJ&E line circles Chicago. Some suburban residents and political leaders opposed the deal, fearing it would increase train traffic and bring more noise and safety hazards to their communities. Federal regulators approved the sale, however.
The railroad said Wednesday it had communicated with all 33 communities affected by the purchase and reached mitigation deals with eight in Illinois and three in Indiana.
Canadian National said it invited each of the 33 communities to send two representatives for a weeklong hazardous-material training session in Colorado at the company’s expense, and would give cities advance notice before diverting freight traffic onto the newly acquired line.
The company said the mitigation efforts would cost more than $60 million, plus $21 million to an environmental consultant, totaling more than one-fourth of the $300 million price it paid for EJ&E.
U.S.-traded shares of Canadian National rose $2.09, or 6.8 percent, to $32.65 in afternoon trading.