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BY KEITH BENMAN
kbenman@nwitimes.com
219.933.3326 | Wednesday, May 21, 2008 | (1 comment(s))
U.S. Rep. Pete Visclosky and Indiana's two U.S. senators want federal regulators to reject Canadian National Railway's request to speed up review of its proposed purchase of the EJ&E.
"This is a matter of public concern and the STB (Surface Transportation Board) should not hasten its ruling for CN's private gain," Visclosky said Tuesday in a prepared release.
"The people of Northwest Indiana would be greatly affected by the acquisition and ought to have every opportunity to voice their concerns and have their questions answered," Visclosky said.
Visclosky, D-Ind., and U.S. Sens. Evan Bayh, D-Ind., and Dick Lugar, R-Ind., have been presenting a united public front in opposing CN's proposed purchase of the 198-mile EJ&E line.
The three said Tuesday the deal threatens plans to expand the Gary/Chicago International Airport and the South Shore commuter rail line. They also said putting 34 trains per day on some EJ&E segments would bisect communities and tie up traffic.
Canadian National wants federal regulators to conclude its environmental review of the proposed purchase of the EJ&E Railway by Dec. 1. It wants the federal Surface Transportation Board to approve the merger by the year's end.
So far, the federal agency has not set any deadlines for completing its work.
Canadian National, in a filing with regulators two weeks ago, said opponents hope to use the process to stall the transaction "until it dies" or to make it economically unfeasible.
"We believe now that the issues have been laid out and it is time to set out a time line with firm milestones and deadlines," Karen Phillips, CN vice president for governmental affairs, told the Times last week.
In September, CN announced it had reached agreement with U.S. Steel to buy the EJ&E Railway for $300 million. The EJ&E runs from Waukegan, Ill., north of Chicago, to Gary.
The proposal has gained support from the city of Chicago, which would see a decrease in rail traffic and congestion if the EJ&E purchase goes through.
It is fiercely opposed in Chicago suburbs such as Barrington, Ill., and in Northwest Indiana, where rail traffic through some communities would increase threefold.
In its filing this week, CN said the deal could fall through unless approval is granted by year's end. That's when its purchase agreement with U.S. Steel expires. The steel company could then seek another buyer for the EJ&E.
In their own filing with federal regulators, Visclosky, Bayh and Lugar asked why the purchase agreement can't be extended and also challenged CN's argument that it will suffer undue economic hardship unless the process speeds up.
The issue
In September, CN announced it had reached agreement with U.S. Steel to buy the EJ&E Railway for $300 million. The EJ&E runs from Waukegan, Ill., north of Chicago, to Gary.
The proposal has gained support from the city of Chicago, which would see a decrease in rail traffic and congestion if the EJ&E purchase goes through.
It is fiercely opposed in Chicago suburbs such as Barrington, Ill., and in Northwest Indiana, where rail traffic through some communities would increase threefold.
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JT wrote on May 21, 2008 12:12 PM: