(The following story by Erik Potter appeared on the Post-Tribune website on November 12.)
GARY, Ind. — A federal appeals court in Washington, D.C., has declined to put a timeline on the government’s approval of Canadian National Railway’s purchase of the Elgin, Joliet & Eastern Railway.
Canadian National had brought suit against the Surface Transportation Board, the federal agency that regulates railroad acquisitions, asking the court to impose a Dec. 1 deadline on its decision.
Canadian National faces a Dec. 31 expiration date for its $300 million purchase agreement of the EJ&E from U.S. Steel.
The court ruled Monday that a quick decision is only necessary in “extraordinary situations” and that CN’s situation does not qualify.
The Surface Transportation Board is set to meet Tuesday to discuss the final Environmental Impact Statement on the proposed purchase.
The board’s Section of Environmental Analysis has been preparing the final report for more than a month, incorporating the public comments it received on its draft report issued in July.
Once the final report is completed, the full board — comprised of three presidential appointees approved by the U.S. Senate — will be able to issue a decision in the case.
The environmental analysis unit expects that the final report won’t be finished until at least Dec. 1, and possibly as late as January.
CN executives released a statement to the media Monday urging the STB to approve the purchase and to do so sooner rather than later.
“While CN is disappointed with the court’s decision, we remain committed to the EJ&E acquisition, and we see no reason why the (transportation board) cannot rule on the transaction quickly to permit it to close by year-end,” CN president and CEO E. Hunter Harrison said.
If approved, the purchase would allow CN to re-route trains around Chicago that currently travel the city’s congested core.
Inner suburbs would see a reduction in train traffic while outer suburbs, including Gary, Griffith, Schererville and Dyer would see an increase in traffic.
(The Associated Press contributed to this report.)