CHICAGO - The Canadian National Railway is upping its offer to help soften the impact on communities from its proposed purchase of the EJ&E Railroad, the Sun-Times reports.
CN said it's willing to contribute $60 million to help pay for everything from creating quiet zones to training local emergency personnel on how to deal with hazardous material spills. Previously, CN said it would pay only $40 million.
CN officials said the new offer is unprecedented.
"Clearly, CN is stepping up to the plate to mitigate significant environmental issues in this case," CN president E. Hunter Harrison said in a statement.
The EJ&E tracks rim the Chicago area, cutting through Southland towns such as New Lenox, Frankfort, Matteson and Chicago Heights. CN wants to buy the tracks from U.S. Steel as a means to reroute trains from its five current lines into Chicago.
Towns along the EJ&E tracks have balked, saying the many more freight trains on the line will essentially split their communities in two.
New Lenox Mayor Tim Baldermann said CN's offer of an extra $20 million won't change his mind that the deal is bad for his town.
"It is not going to cut it," Baldermann said.
The U.S. Surface Transportation Board, the agency that governs railroads, has said a ruling on CN's request to approve the merger will be issued between Dec. 1 and Jan. 31.
The proposed sale has picked up the endorsement of Chicago Metropolis 2020, an influential organization of regional business leaders.
The group said better use of the EJ&E line could remove as many as 1,000 trucks per day from local roads and reduce shipping costs, resulting in lower prices for consumers.
(This item appeared Oct. 2, 2008, in the Sun-Times.)
(The following report by Nathan VanderKlippe appeared on the National Post website on October 2.)
OTTAWA Canadian National Railway President and CEO Hunter Harrison hinted Wednesday that the controversial deal to buy Elgin, Joliet and Eastern Railway may not die at years end after all.
Speaking to the Journal of Commerce Canada Maritime Conference, Mr. Harrison answered several questions about the $300-million bid to buy EJ&E. The small rail line through the Chicago suburbs has stoked a war with residents, who dont want to see more trains on the little-used line.
In August CN said there is a substantial risk that EJ&E owner U.S. Steel Corp. would back out of the deal if it is not completed by years end. Mr. Harrison appeared to temper that comment yesterday.
I dont think its certain that U.S. Steel has to be done by the end of the year, he said. They have not indicated to us that they would extend it. To my knowledge, they have not indicated they would not extend it. Theres a lot of pressure out there going on, and maybe after November 4 it will ease up.
Mr. Harrison expressed frustration with the long battle to buy the railroad, which would save CN the day it currently takes to pull its trains through Chicagos congested rail network.
There are unprecedented political pressures being exerted on this transaction, he said.
Mr. Harrison expressed frustration with the long battle to buy the railroad, which would save CN the day it currently takes to pull its trains through Chicagos congested rail network.
