Letter: CN's rail takeover plan needs work

A regional planning group contends the Canadian National Railway and federal regulators aren't doing their homework when it comes to a proposed merger with a smaller railroad.

A draft letter by the Chicago Metropolitan Agency for Planning to the U.S. Surface Transportation Board states the federal agency needs to dig deeper concerning CN's plan to buy the EJ&E Railway.

CN needs STB approval for the purchase that would result in more freight trains being moved onto EJ&E lines. While the railway says this will ease a train chokepoint in Chicago, many communities along the tracks are fighting the merger.

CMAP staff noted that freight congestion in the region is bad already and train traffic is expected to increase significantly in the next 20 years. They argue that CN underestimates growth patterns in their proposal to the STB.

"It might be reasonable to ask why the acquisition has been proposed, if CN believes that freight traffic will not grow as most observers anticipate it will," the draft states.

Agency planners argue that the STB's preliminary analysis of the merger's impact should flesh out how to fix problems posed by more trains going through 15 at-grade crossings on busy roads.

The STB also needs to look more seriously at how freights on the EJ&E would affect plans for a proposed suburb-to-suburb commuter train, known as the STAR line, CMAP recommends.

The draft of the letter had suggested CN commit $150 million to mitigate the impact of the extra freights but details are still being revised following a board meeting Wednesday. CN has offered $40 million.

CN spokesman Jim Kvedaras said CMAP "was free to offer whatever comments they have to the STB."

As for the railroad's projections for future growth, CN had worked extensively with STB staff to get their numbers right, he said.