(The following story by Marni Pyke appeared on the Daily Herald website on December 12.)
CHICAGO — A railroad that has indirectly supported CN in the past in its bid to buy the EJ&E Railway is complaining to federal regulators that the Canadian company is jumping the gun on its ownership rights.
Union Pacific Railroad complained to the U.S. Surface Transportation Board this week that CN is interfering with a previous trackage rights deal it had with the EJ&E.
CN wants to merge with the “J,” which runs between Waukegan and Gary, Ind., and move freights from its lines in Chicago to the smaller railroad – a move that’s drawn opposition from some towns along the EJ&E.
Union Pacific told the board that CN is illegally forcing the EJ&E to back off agreements that allow UP to use sections of the “J” for its trains.
CN officials said Thursday they were reviewing the situation and had no response at this time.
But Barrington Mayor Karen Darch, whose community is fighting the merger, said “it’s a red flag to all of us that CN cannot be trusted to do the right thing.”
However, while officially staying neutral in previous comments to the board, UP has tacitly backed the transaction – arguing that the anticipated extra traffic on the EJ&E pales in comparison to what other regional railroad lines handle. UP also criticized a July STB staff report saying the financial demands placed on CN to remedy train traffic were unfair.