Chicago group backs CN railroad merger
As foes and supporters wait eagerly for a definitive report on the merits of the Canadian National Railway's proposed purchase of the EJ&E railroad, a separate report issued Wednesday suggests the move will pump millions into the local economy.
Chicago Metropolis 2020, a civic planning group, released a study Wednesday indicating that if CN puts freight trains on the less-traveled EJ&E line, it will create new jobs and pump $267 million into the national gross domestic product. In the region, the purchase would provide a $60 million boost to the economy and create 649 jobs, the organization said.
The Surface Transportation Board has not yet ruled on the transaction, but a final environmental impact study is expected to be released soon.
CN contends that its acquisition of the EJ&E, whose line runs in a semicircle between Gary, Ind., and Waukegan, will ease freight traffic in Chicago and nearby suburbs. By putting more freights on the "J," the move would free up a bottleneck that forces trains from most of the nation's major railroads to sit in Chicago for days, CN says.
But opponents of the merger, which has yet to be decided on by federal regulators, contend CN has plans to increase train capacity on its lines and the EJ&E so substantially in the future that any gains will be lost. Towns along the EJ&E, such as Barrington, fear they will suffer from traffic, noise and safety issues if more trains are routed through their communities.
Barrington Mayor Karen Darch said the report ignores the cost to taxpayers of mitigating problems caused by extra train traffic such as expensive grade separations and the fact the merger could doom Metra's proposed STAR Line, connecting suburbs planned to travel along the EJ&E.
The study "is focused on Chicago and not on the region," Darch said. "It is narrowly focused when you think of the billions of dollars in infrastructure taxpayers will face if the EJ&E shifts over."
Metropolis 2020 leaders, however, said the research proves the merger will ensure the Chicago region stays a dominant force for rail transportation in the nation.
Meanwhile, time is running out on the acquisition agreement between CN and U.S. Steel, which owns the EJ&E. The two companies had a Dec. 31 deadline to complete the deal. While CN has said the merger could fall through if the STB fails to rule before Jan. 1, transportation experts speculate U.S. Steel will extend the contract. The steel company Wednesday announced it was consolidating a number of Midwest plants to save money.
In related news, Amtrak is dropping its opposition to the sale.
Amtrak had worried Canadian National would stop maintaining other Chicago-area tracks if it purchased the EJ&E. It had feared that would jeopardize Amtrak service south to Springfield, Carbondale and other cities.
CN has now agreed to keep maintaining those tracks.
But Amtrak spokesman Marc Magliari says ending its opposition isn't the same as active support. He say Amtrak is now taking a "neutral position" on the $300 million sale.
• Daily Herald news services contributed to this report.
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Chicago takes stand on rail sale <span class="date">[1/22/08]</span></a></li> <li><a href="/story/?id=116260">DuPage crowd speaks out against rail sale <span class="date">[1/18/08]</span></a></li> <li><a href="/story/?id=114429">Bartlett, Hoffman Estates oppose rail sale <span class="date">[1/16/08]</span></a></li> <li><a href="/story/?id=110309">EJ&E railway plan met with protests <span class="date">[1/10/08]</span></a></li> <li><a href="/story/?id=110486">Hundreds pack meeting on EJ&E's rail plans <span class="date">[1/10/08]</span></a></li> <li><a href="/story/?id=110486">Hundreds pack meeting on EJ&E's rail plans <span class="date">[1/10/08]</span></a></li> <li><a href="/story/?id=110486">Hundreds pack meeting on EJ&E's rail plans <span class="date">[1/10/08]</span></a></li> <li><a href="/story/?id=110486">Hundreds pack meeting on EJ&E's rail plans <span class="date">[1/10/08]</span></a></li> </ul> <div class="infoArea"> <h2>Video</h2> <ul class="video"> <li><a href="/multimedia/?category=9&type=video&item=217">Thousands turn out for EJ&E meeting </a></li> </ul> </div> </div> </div> </div>