CN buy of EJ&E approved. (With conditions.)
http://www.southtownstar.com/news/1348125,122408cn.article
EDIT:
Story from Reuters.
Story from the Tribune Company.
http://www.chicagobreakingnews.com/2008/12/canadian-national-railway-rail-deal-approved.html
RIP EJ&E and their incredible fleet of SD38s. The only thing that saved them up on the DM&IR was Proctor Hill, and with no saving grace down there on the J, get ready for some wonderful repaints and a plethora of retirements and scrappings.
Thanks for ruining another wonderful railroad, Mr. Harrison.
As information, there are postings on today’s STB decion in the “CN quietly proceeding…” thread. Attached below are CaptainChuck’s posting and my reply. Nothing earthshaking in either, just additional information
CaptainChuck:
The Deal is Done. EJ&E is now part of CN
http://www.stb.dot.gov/__85256593004F576F.nsf/0/37278E04696F2177852575290058EDF0?OpenDocument
Falcon48:
Just as clarification, the STB released its decision today approving the CN-EJE transaction subject to conditions. That doesn’t mean the deal is “done” or that EJ&E is now part of CN (not yet, anyway). The STB decision, by its express terms, isn’t effective until January 23, 2009. So nothing can happen until then.
Huzzah!
Congrats to CN. Here’s hoping things roll smoothly along.
CN issued a press release on the decision today which is on their website. They sure make it look like they intend to close as soon as they can (i.e., January 23).
One Mayor completely lost it when informed of the STB decision.
Lake Zurich Mayor John Tolomei said the decision undermines U.S. jobs and trade, and ensures CN a private monopoly on a route around Chicago “by destroying our quality of life.”
“I was hoping that the STB would actually be standing up for the interest of the American public,” he said. “It’s appalling that the STB is subsidizing a Canadian company that is also, in turn subsidizing cheap Chinese goods all for a minor, temporary gain in freight-loading in Chicago and nearby suburbs … at the expense of killing commuter rail service for our outer suburbs. It’s also subsidizing cheap goods and making U.S. goods less competitive and hurting the overall country.”
Lake Zurich has six at-grade crossings in or near town, and a high school and several residential areas that back up to the EJ&E railroad tracks.
What subsidies is he imagining? This certainly won’t “Kill” any commuteer rail service.
The full article is at:
Yeah, losing one of the greatest and most historic shortlines in Chicago, what a Christmas present… This is truely the real nightmare before Christmas. I know one thing, I’ll be photographing the heck out of the EJ&E until the last SD38-2 falls.
The deal is a benefit to the entire US rail community. Anything which enhances anybody’s through-put in Chicago benefits all the carriers that serve Chicago.
Exactly. It should help keep RR traffic competitive with other forms of transportation too.
He’s probably referring to Metra’s proposed STAR line, which will probably become more expensive with CN not allowing Metra to use its tracks (but allowing it to use the right-of-way to build its own line). That didn’t directly affect Lake Zurich, though.
I’m curious, though. UP was upset about CN affecting its trackage rights over the J, then they withdrew the complaint–what exactly was the outcome of that?
So, the end of the Air Line, too?
Some of you need to think for once. Stop thinking from a railfan point-of-view. CN and EJE do not care about what the railfans think. They are in the railroad business for BUSINESS REASONS. It’s okay to be a railfan, but don’t get mad when something doesn’t go your way. If you were in their position you would do the same thing. This is done for the good of CN and the United States. Traffic might flow a little better through Chicago and that would save a lot of money. Stop doing the railfan cry about the loss of another shortline and instead enjoy the fact that this could be a great benefit.
To those who can’t stop talking about the CN kicking UP and other railroads off the line, have any of you actually talked to the decision makers at CN? Be careful of who you get the info from. Some railroaders and officials enjoy spreading rumors just to get everyone scared. 99% of railroad rumors turn out to be untrue or twisted around. Be careful what you spread around. Sorry for ranting.
AFAIK only a small portion of the Air Line could be changed. This depends on the connection from the Lakefront line to the Iowa & old GM&O lines to Glenn Yard & Joliet.
I’m a little surprised there isn’t already a direct connection from BNSF/Corwith to CN/Elsdon. It also should fairly easy to connect the old PRR/Panhandle to the CN/Elsdon line near the Railport. CN must be tired of these high crime areas & pull freight out of the city.
Don’t forget CN has a deal with Amtrak to keep the Air Line connection to CUS open as long as Amtrak needs it. I wonder if CN has a deal with Durbin & others to get parts of the Create project funded?
I would not exactly break out the champaign just yet…
‘Thare be lawyers involved.’ [oX)] (with apologies to H.Melville.)
SOooooo, it won’t be over til the fatlady has sung, but you can bet it will be interesting ride up til the last aria.
Congratulations, CN - well, I guess.
Any ideas as to how this might impact/benefit the former IC/ICG Iowa Division?
I agree. As a railfan, one might lament the falling of an old flag, but the deal makes a lot of sense. It was inevitable that EJ&E would eventually become part of a larger system. In fact, it came very close to happening in the 1990’s. The only reason it didn’t happen was because the planned acquirer was itself merged into a larger system.
With respect to CN “kicking off” UP or other trackage rights tenants off EJ&E, your caution about being careful is well taken. The fact is that a railroad can’t just “kick off” a trackage rights tenant. In the first place, t
As I mentioned in a previous post, look at the operating plan CN submitted as part of its merger application (available on the STB website). It has “before and after” traffic counts for all EJ&E and CN line segments expected to be affected by the merger.
I figured he was referring to the proposed STAR route. This operation has been a proposal for a long time, and probably will continue to be a proposal for an even longer time.
The fact that the Lake Zurich mayor halucinates that the CN take over of the EJ&E will “Kill” the STAR route is just further proof that he’s nuts. With the exception of the Metra Electric (old IC commuter system), the suburban trains in Chicago generally share tracks with main line freight operations. It all works out. People get to work on time in the morning and come home in the evening while the freight trains roll through the rail center of America.
I live in Antioch, IL which is on the CN. The trains that will shift to the “J” come though here now, and will continue to do so no matter what eventually happens with the CN/“J”. Metra runs here sharing the tracks with the CN freights. There aren’t any big problems. The CN take over of the “J” needent be any different.
Except in the Lake Zurich mayor’s confused mind.
It will be very difficult to find a local judge to countermand a federal agency’s decision, which either will be thrown out at a hearing or quashed at higher levels. Lawsuits may be filed, but to what end? Who will be willing to fund those $$$$$ lawyers? Not out of my tax dollars, you betcha.