CN reaches deal with Joliet on EJ&E purchase, hearing rumbles

Canadian National Railway said it has reached an agreement with the City of Joliet, Ill., regarding its proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway Co.

Tuesday's announcement came as the Surface Transportation Board began a series of eight hearings on the proposed purchase of the short-line railway, which has provoked opposition in some Chicago suburbs.

Under the deal announced Tuesday, CN said it has resolved outstanding concerns the City of Joliet has related to quiet zones, operations, and communications surrounding the transaction.

We believe this will be the first of many agreements between CN and the communities along the EJ&E line that are impacted by this transaction, said Gordon T. Trafton, senior vice president for CN's southern region. We have consistently been willing to work with and address the concerns of communities across the region. We believe this agreement with Joliet is evidence that these concerns can be mitigated.

CN says the $300 million purchase will improve service to large and small companies across the Midwest and throughout the nation, and will relieve serious rail congestion and bring significant economic and environmental benefits to the Chicago region.

But opposition to the plan is running high in some communities. About 5,100 people turned out at a hearing in the Chicago suburb of Barrington, Ill., on CN's plan to purchase the EJ&E.

A report in the Daily Herald newspaper said that during the hearing, only one of the 80 speakers spoke in favor of the hearing and he was a CN executive.

Residents are concerned about a big increase in rail traffic and that the length of trains could create road traffic congestion and delay fire trucks and other emergency vehicles. The Wednesday hearing was the first of eight planned in the Chicago area by the STB, which must approve the CN purchase.

CN, which announced plans to buy the EJ&E one year ago, said Chicago rail congestion can force freight trains to take more than 24 hours to travel a 30-mile area from Howard Street on the north to 127th Street on the south of Chicago.

It said by linking EJ&E lines with CN's lines, companies transporting their goods will benefit from faster transit times, more reliable service and general increased flow of rail traffic in the region will improve. And it notes while some suburban communities will see more rail traffic, many will see less. 

Source: American Shipper