(Reuters circulated the following on July 25.)
CHICAGO — U.S. regulators are not likely to make a decision on Canadian National Railway’s purchase of the Elgin, Joliet & Eastern Railroad until early next year, according to a ruling released on Friday.
But the U.S. Surface Transportation Board agreed to Canadian National’s request to put limits on the length of an ongoing environmental review, which CN has warned would scuttle the $300 million deal for the Chicago-area rail carrier if it drags on past the end of the year.
The environmental review will be completed sometime between the beginning of December and the end of January, with the STB making a final decision “as soon as possible” after that, according to the ruling posted on the board’s website.
CN struck a deal last year to buy the bulk of the 198-mile (315 km) EJ&E from United States Steel Corp. in an effort to speed up freight traffic through the congested Chicago rail hub where its trains now face lengthy delays.
But the purchase has run into vocal opposition in the city’s western suburbs from residents worried that increased train traffic on the EJ&E’s tracks will slow down cars at highway grade crossings and cause safety problems.
Canadian National, Canada’s largest railway, which has extensive operations in the United States, had requested the environmental impact statement be finalized by Nov. 3, with the regulators issuing a decision on the deal by Dec. 1.
The regulators said that timetable would be too brief, but they also rejected a request by opponents for an extended 120-day comment period on the proposal.
CN had said when it announced the purchase last year that it expected to have it completed by mid-2008.