Letter: The little train deal that could
There's a relatively simple solution that should appease both sides of the proposed Canadian Pacific Railway acquisition of the Kansas City Southern Railroad.
Unfortunately, there's little-to-no way to stop the consolidation within the declining railroad industry, which realistically began more than a century ago. And if people want the supply chain to remain flowing and fluid then they won't constrict the business needs of one of the main (even if fading) transportation modalities.
How to get both sides to agree? Follow the money. If this deal is worth $31 billion, then the consolidated CPKC can invest in constructing four-lane concrete overpasses in each of the communities protesting the deal. If each community - there seems to be as few as eight but may be closer to a dozen - were to require two overpasses each at $25 million per overpass, then CPKC would be looking to invest $600 million just to make the deal happen. How about we round it up to a flat $1 billion to cover any additional communities that jump on the bandwagon at the last minute? Once the overpasses are completed and fully working, CPKC can begin moving their trains through these communities - regardless of the length of time between the actual signing and consummation of the deal and the construction of the overpasses.
At a cost of $1 billion, roughly 3.2% of the $31 billion dollar deal, CPKC would get their merger and these communities would alleviate any potential traffic snarls but also gain some infrastructure improvements. Of course, the state government would have to get a cut somehow and demand that CPKC allow the state to select its own construction companies to do the jobs. Conservatively, that might add another $500 million to the pot, but it's still a small price to pay to play poker with Illinois politics.
Rick Dana Barlow
Schaumburg