Canadian National must pay to remove level crossings: US court

THE US Court of Appeals has quashed a Canadian National Railway (CN) plea to reverse a Surface Transportation Board (STB) order requiring CN to pay most costs associated with two highway grade separations.


The Canadians hoped to overturn 2008 STB decision, part of its approval of the Canadian purchase of the Chicago-area Elgin, Joliet & Eastern Railway, that it pay 67 per cent of the rail road grade separation at Ogden Avenue in Aurora, Illinois, and 78.5 per cent of the one at Lincoln Highway in Lynwood, Illinois.


CN had argued that the STB's grade separation condition was "unjustified and beyond the STB's regulatory authority." Despite agreeing that CN's argument was "eminently reasonable," it ruled that CN had failed to carry the "heavy burden" necessary to overturn the condition.


"While we are disappointed, we will not appeal," said CN president and CEO Claude Mongeau, "and will continue working with Illinois to implement the grade separations in accordance with STB requirements."


Mr Mongeau said the company's focus remains on completing the integration of the Elgin, Joliet & Eastern Railway (EJ&E) into the CN network, a project that is now in its third year.


CN pointed out that it has "voluntarily assumed" 108 separate mitigation conditions and "accepted without objection" 73 additional mitigation conditions imposed by the STB with 26 of the 33 communities along the Elgin, Joliet & Eastern Railway's main line that concern environmental and safety issues related to the acquisition of the EJ&E.


The Canadian railway claimed that excluding the costs of the two grade separations, the mitigation programme will cost CN more than US$60 million.
(Source:http://www.schednet.com)