In reading about the many agreements that are being hammered out on CN’s website (LINK) it makes me wonder just how close to getting their proposed acquisition approved they are. Since the start of November 2008 I count 5 cities and AMTRAK having mitigation plans worked out. Where do things stand overall?
Well the STB has issued its final report. I received two CDs from them since I sent a letter. Unfortunately the one with their findings was destroyed by that fine US government run outfit called the Post Office so I haven’t been able to read it. In a slight aside I can’t wait to see the cars the government will force into production based on the way they run the post office. New Lenox called every resident to show up for a town hall meeting on Saturday to discuss the findings. My understanding is the STB did say that several communities would be negatively impacted but most of them are west of Joliet. It also say’s that congestion closer in to Chicago will be relieved and traffic will flow better in the city. In addition they said there was nothing preventing CN from running trains over the EJ&E through an agreement. the only reason they were involved was because of the sale so it looks like they gave CN an out to use the route if it is opposed. My assumption (read opinion not fact as I don’t know) is it will be approved. They said the ruling would be out within 30 days of 12/12/08 in the cover letter with the Cds they sent.
Here is the STB 12/5/08 environmental impact publicity release. note that they still have to make their decision known.
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SURFACE TRANSPORTATION BOARD ISSUES FINAL ENVIRONMENTAL IMPACT STATEMENT FOR PROPOSED CANADIAN NATIONAL RAILWAY ACQUISITION OF ELGIN, JOLIET & EASTERN RAILWAY |
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The Surface Transportation Board announced today that its Section of Environmental Analysis (SEA) has issued the Final Environmental Impact Statement (Final EIS) for the proposed acquisition by the Canadian National Railway and Grand Trunk Corporation of the Elgin, Joliet & Eastern Railway (EJ&E). Issuance of the Final EIS completes SEA’s environmental review process. Upon reviewing and considering the Final EIS, and the extensive transportation related and environmental record developed in this case, the Board will independently issue a final decision either denying, approving, or approving with conditions the pending merger. Completion of SEA’s Final EIS should not be interpreted as determinative of the Board’s ultimate final decision on the merger. |
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I was also thinking it’d get approved. If those CCTV cameras get installed I wonder if the views would be publicly available. There are some in Texas on the UP (when I get home I’ll post a link to that site) that are publicly available and give a neat view. Not that it matters in the grand scheme of things but it’d be nice.
CM might have taken another blow coutesy of UP. Sounds like CN had EJ&E cancel its trackage rights on the EJ&E east of Jolie, cutting off UP service to power plants in northern Indiana. UP has said they are not against the merger but the STB needs to consider holding the deal a bit longer until a agreement with EJ&E and CN can be had to continue the trackage rights.
http://165.91.110.101:2010/view/index.shtml
There’s a link to that webcam set in Texas on the UP.
Maybe CN wants the rights for itself, assuming the merger goes thru.
It might want the rights for itself, but CN itself doesn’t move coal from the PRB and the trackage rights there would be useless to then. Exactly what I feared about CN taking over the EJ&E is true, It looks like CN is trying to get the line for themselves and not let anyone else use it judging by how they are trying to interfere with UP’s trackage rights. CN can’t legally kick UP off the line until they own it, it is illegal to control things from the shadows like CN is trying to do.
An article in the 12/17 Chicago Tribune indicates that several communities have given up opposition and are negotiating with CN for the best deal they can get. Among the perks CN is paying for several studies that indicate just what roads do require overpasses. In a separate issue I crossed the EJ&E on Monday in New Lenox as a UP coal unit train came through. New Lenox is the first community east of Joliet and has a decent grade up out of the valley. I didn’t see the head end but was very surprised to see a UP engine in push mode that must have been remotely controlled from the front end as it was wound up in notch 8 to my ears.
Apparently, this is no longer an issue. UP had filed a petition claiming that CN was exercising “premature control” over EJ&E in connection with the trackage rights. However, according to the STB website, UP withdrew the petition last Friday (the 19th). There’s very little information in the latest UP filing on why they withdrew the petition, but they most likely negotiated something with CN after the petition was filed.
From the “Re: Elgin, Joliet & Eastern - a couple of questions.” thread at:
http://cs.trains.com/trccs/forums/t/102680.aspx?PageIndex=5 :
eastside - 12-22-2008 at 10:56 AM:
There’s an article in today’s (12/22/08) Wall Street Journal about the political forces active in the EJ&E acquisition.
It’s titled “Routing the Rails Through the Suburbs - Canadian National Plan to Avoid Inner-City Freight Bottleneck Triggers Protests”, by Alex Roth, page A-5, cols. 1- 6. The text occupies the entire page length of col. 1, but only about 2 inches of cols. 2 - 4. Cols. 5 -6 are a poor quality - hard to discern (in my opinion) graphic of the rail line as a heavy line overlaid on a mosaic of the greater Chicago area, where the 4 “shadings” differentiate between the 1999 Median Household Incomes.
If you’ve been following this thread, I think there’s nothing much new here, other than that some of the politicians from the inner-urban areas apparently support the proposed acqusition - at least verbally - to get the rail traffic out of their neighborhoods. As the late. great Trains Editor David P. Morgan once wrote that one of his Army officers told him, "Morgan, it all depends on whose ox is being gored . . . ".
- Paul North.
The Deal is Done. EJ&E is now part of CN
http://www.stb.dot.gov/__85256593004F576F.nsf/0/37278E04696F2177852575290058EDF0?OpenDocument
I can rant and rant for days about why this merger should not have been approved but I guess it doesn’t matter now. This is a terrible thing for Chicago Railroading, CN is now going to monopolize the EJ&E and not allow anyone else to use the line. They already tried to kick UP off the line before the merger was even approved so they are in it for themselves, not for the greater good of the area like they kept saying. It is not just because of losing another shortline and the SD38-2s to CN, it is because CN will force other railways to deal with the congestion in Chicago.
Just as clarification, the STB released its decision today approving the CN-EJE transaction today, subject to conditions. That doesn’t mean the deal is “done” or that EJ&E is nw 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. I would imagine there will be attempts by some of the opponents to pursuade STB or a Federal Court of Appeals to further delay the transaction. I wouldn’t expect the Board to do so, but who knows what a court might do?
CN also has a decision to make whether to go forward with the transaction and when. One thing today’s decision did was to substantially increase the portion of costs CN must contribute to the Ogden Avenue and Route 30 - Lincoln Highway grade separations recommended in the EIS, a change which represents tens of millions of dollars. My gut reaction is that this won’t make CN walk away from the transaction, but we will have to wait and see what CN says about it. Also, the near certainly that the merger opponents will appeal today’s decision both to STB and the courts raises a real prospect that there could be a later decision which substantially increases CN’s mitigation costs up the road. Assuming that CN is legally free to close on the 23rd, it will have to decide whether to do so and run this risk. Again, we’ll have to wait and see what CN intends to do.
Here’s hoping that CN can close the deal. Exciting times are ahead.
Yay. The loss of yet another railroad to the E. Hunter Harrison virus.
CN issued a pretty positive press release on the decision today which is available on its website. While it expresses concern with the mitigation cost, they sure make it look like they intend to close as soon as they can (i.e, January 23)
Exciting times ahead? I don’t think so. I’m sick of all the midwest regionals getting bought out. At the pace we’re going they’ll all be gone. It is rather disturbing that 1-3 regionals seem to be falling every year, almost all of which have been due to CN.
Aside from the “It’s their business to run” school of thought…
My “business” perspective:
I’d rather have a stronger, more capable road in the area than nothing. I’m glad that business is, or seems to at least, be good enough that this kind of thing is feasible. To me, this merger might just free up some congestion from the Chicago area. Less congestion should mean more efficient operation for all roads involved/affected. That should make business better/easier for all roads involved/affected. That should make them stronger.
For my “railfan” perspective:
I respect that the EJ&E has a place in your heart. As an example I was not thrilled when CNW went away but looked at things like I said above. It’s better to have something than nothing to look at/railfan.
I bet the same thing was said about PC, then CR, then NS… somehow it never quite works that way…
That’s how the food chain has worked in the RR biz since the beginning of time, Robby. Don’t expect it to change.
The PRR – with over 10,000 route miles – over its history merged with or bought out over 800 smaller railroads.