(The following story by Danielle Braff appeared on the Gary Post-Tribune website on September 28.)
GARY, Ind. — New ownership of a railway that travels through Gary could mean new jobs and tax money for residents in and around the Gary area.
The Canadian National Railway Co. announced plans Wednesday to purchase a major portion of the Elgin, Joliet and Eastern Railway, a subsidiary of U.S. Steel, for $300 million.
When the acquisition is finalized, Canadian National plans to improve rail operations and create rail traffic, spokesman Mark Hallman said. In addition, Canadian National plans to invest about $100 million for integration, new connections and infrastructure improvements to add capacity.
For Gary, however, the move could mean much more.
Mayor Rudy Clay said he’s been working to bring an intermodal facility into his cash-starved city. The intermodal, which could potentially connect the railways, trucks, ships and the airport, would serve as a transportation hub.
While intermodal talks have centered around the area of Interstate 65 and 15th Avenue, the plans were never concrete.
“All I can say is we are interested in the intermodal,” Clay said. “I don’t want to say too much because it hasn’t come to fruition.”
Now, the revitalization of the EJ&E Railroad could either change the location of the intermodal or the city could use the new system to exemplify transportation options there, making it even more appealing to a prospective intermodal developer.
Hallman said Canadian National already has a successful intermodal facility in Harvey, Ill.
He said it’s premature to discuss the possibility of using Canadian National to help with an intermodal, adding they haven’t been approached by the city yet to talk about the option.
Before the idea of an intermodal in Gary moves to the next stage, Gary needs to complete its freight route, which will help determine the best spot for the facility, said Justin Murphy, chief of staff for the Four Cities Consortium, which also includes East Chicago, Hammond and Whiting.
Murphy has been studying the location on 15th Avenue, and said it would be an ideal location.
It has more than 150 acres with few buildings or other obstacles, Murphy said.
The area has enough capacity to support 200,000 lifts per year, with 3,000 trailer stalls available for storage.
It has an adjoining 400-acre site and five or more 50-acre sites available within a three-mile radius.
The location is already zoned heavy industrial, which would knock out many of the rezoning obstacles facing other locations, he said.
The city would have to construct a heavy truck route that would be four to six blocks long, and there would need to be infrastructure improvements around the site, Murphy said.
“The mayor actively supports having an intermodal,” Murphy said.