Railfanning.org News Wire

CN, Schererville, Ind., Agree on Mitigation Plan for EJ&E Transaction

Railfanning.org News Wire — Fri, 19 Dec 2008 22:09:01 +0000

CHICAGO — CN announced an agreement with the Town of Schererville, Ind., located 28 miles south of Chicago, that would mitigate the impact on the community of CN’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E).
Under the agreement, CN will assist in the creation and maintenance of quiet zones in Schererville, and take various steps to improve train operations, communications, and emergency preparedness in the municipality.
The agreement is contingent upon regulatory approval of CN’s proposed acquisition of the EJ&E. The transaction is being reviewed by the Surface Transportation Board (STB), which is encouraging CN and communities to reach voluntary mitigation agreements.
Gordon Trafton, CN senior vice-president, Southern Region, said: “CN is pleased to have reached this mitigation agreement with the Town of Schererville, which is the latest in a series of similar pacts we’ve signed with communities along the EJ&E. As part of our outreach efforts, we also have mitigation agreements with five other communities - Dyer, Indiana, and Mundelein, Chicago Heights, Crest Hill and Joliet, Illinois. We are receiving a positive response to our mitigation efforts from a growing number of communities, and we are continuing to meet with several other communities on the EJ&E and hope to sign more agreements in coming days.”
CN is committed to meet all of the STB’s established mitigation standards under a comprehensive mitigation program that would cost about $60 million, which is more than 20 percent of the acquisition price - an unprecedented amount for mitigation in a rail merger of this size. This is in addition to $100 million CN has earmarked for infrastructure improvements on the EJ&E.
With the release Dec. 5, 2008, of the final Environmental Impact Statement on the proposed acquisition of the EJ&E, CN hopes the STB will soon issue a positive decision on the transaction, which promises clear transportation, economic and environmental benefits for the Chicago region and the nation.

– PRNewswire-FirstCall

CN, Village of Mundelein, Ill., Reach Agreement on Mitigation Plan for EJ&E transaction

Railfanning.org News Wire — Tue, 09 Dec 2008 22:06:40 +0000

CHICAGO — CN and the Village of Mundelein, Ill., located northwest of Chicago, today jointly announced a voluntary mitigation agreement addressing the municipality’s concerns regarding CN’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E).
Under the agreement, CN will assist in the maintenance of quiet zones, and take various steps to increase the fluidity of train movements through Mundelein, as well as improve safety, communications, emergency preparedness, and Metra access.
The agreement is contingent upon regulatory approval of CN’s proposed acquisition of the EJ&E. The transaction is being reviewed by the Surface Transportation Board (STB), which is encouraging voluntary mitigation agreements between CN and communities.
Gordon Trafton, CN senior vice-president, Southern Region, said: “CN is grateful for the cooperation it received from the Village of Mundelein in negotiating a realistic, effective mitigation agreement. The agreement not only addresses the municipality’s concerns about train operation changes contemplated by our acquisition of the EJ&E, but also establishes a framework for a continuing dialogue on any future grade-crossing issues arising from the transaction.”
Mundelein Mayor Ken Kessler said: “The Village thought it imperative that on behalf of its residents and interest of the community that we engage in a dialogue with CN to address our concerns regarding the EJ&E transaction. We believe our efforts have been fruitful, producing an agreement with a range of mitigation initiatives that will safeguard our community’s interests.”
Trafton said: “Today’s agreement with Mundelein adds to those we have reached with Joliet, Crest Hill and Chicago Heights, Illinois, and Dyer, Indiana. We are continuing talks with several other municipalities on the EJ&E line in hopes of reaching similar voluntary mitigation agreements in the near future.”
CN is committed to meet all of the STB’s established mitigation standards under a comprehensive mitigation program that would cost about $60 million, in addition to the $100 million CN has earmarked for infrastructure improvements on the EJ&E.
With the STB’s issuance Dec. 5 of the final Environmental Impact Statement on the proposed acquisition of the EJ&E, CN remains hopeful that the Board will authorize the transaction soon and allow its benefits to be realized. CN’s EJ&E transaction will provide clear transportation, economic and environmental benefits to the Chicago region and the nation.

– PRNewswire-FirstCall

CN, Chicago Heights, Ill., Reach Mitigation Agreement for EJ&E transaction

Railfanning.org News Wire — Tue, 09 Dec 2008 22:03:30 +0000

CHICAGO HEIGHTS, Ill. — CN announced an agreement with the City of Chicago Heights, Ill., located 26 miles south of downtown Chicago and six miles from the Indiana border, that addresses municipal concerns about CN’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E).
Under the agreement, CN will assist in the creation and maintenance of quiet zones and take various steps to improve operations, safety, fencing and emergency preparedness and promote economic development in Chicago Heights.
The agreement is contingent upon regulatory approval of CN’s proposed acquisition of the EJ&E. The transaction is being reviewed by the Surface Transportation Board (STB), which is encouraging CN and communities to reach voluntary mitigation agreements.
Gordon Trafton, CN senior vice-president, Southern Region, said: “We thank Chicago Heights for working with CN to negotiate a mutually satisfactory plan to manage the impact of our transaction on the community.
“More municipalities are responding to CN’s outreach efforts by entering into mitigation agreements with the railroad that address their unique concerns. To date, CN has reached agreements with three other municipalities along the EJ&E line - Joliet and Crest Hill, Illinois, and Dyer, Indiana - and CN remains committed to negotiating additional agreements with other communities along the EJ&E.”
CN has also reached an agreement with Amtrak preserving Amtrak’s current route to Chicago’s Union Station for passenger service to and from Carbondale, Champaign, and other downstate Illinois points.
CN is committed to meet all of the STB’s established mitigation standards under a comprehensive mitigation program that would cost about $60 million, in addition to $100 million CN has earmarked for infrastructure improvements on the EJ&E.
“With the final Environmental Impact Statement on the transaction now issued, CN hopes to see a final STB decision in the near future that would approve the transaction and allow for its benefits to be realized,” Trafton said. “CN’s EJ&E transaction will generate meaningful transportation, environmental and economic benefits for the Chicago region and the nation as a whole.”

– PRNewswire-FirstCall

STB Issues Final EIS for CN Acquisition

Railfanning.org News Wire — Wed, 03 Dec 2008 22:00:02 +0000

WASHINGTON — The Surface Transportation Board announced 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.

STB Sets CORP Sale Price

Railfanning.org News Wire — Fri, 21 Nov 2008 03:29:19 +0000

WASHINGTON — The Surface Transportation Board announced it has established $16.6 million as the purchase price of the Central Oregon & Pacific Railroad Inc.’s (CORP) 111-mile railroad line, running from Danebo to Cordes, Ore.

In a prior decision, the Board had ordered CORP to sell the line to the Oregon International Port of Coos Bay. The Board-established figure is approximately $2.9 million less than the $19.5 million that the Port testified it had available for the Line’s purchase.

The Port must decide by Dec. 1 whether to accept the terms of sale established by the Board’s decision. If the Port accepts the terms, the Port and CORP are directed to close the transaction by Feb. 18, 2009.

“Today’s decision marks a significant milestone in the Board’s efforts to reopen the Coos Bay Line,” Board Chairman Charles D. Nottingham said. “The shippers along this corridor are now one step closer to the resumption of much-needed rail service.”

STB Issues EA for Pan Am Southern

Railfanning.org News Wire — Sat, 15 Nov 2008 03:17:06 +0000

WASHINGTON — The Surface Transportation Board announced that its Section of Environmental Analysis (SEA) has issued an Environmental Assessment (EA) for public review and comment.

The EA related to a proposal by the Norfolk Southern Railway Co., Pan Am Railways Inc. (a noncarrier holding company), and two of Pan Am’s railroad subsidiaries, the Boston and Maine Corp. and the Springfield Terminal Railway Co., to acquire and to jointly control and own, Pan Am Southern LLC, a new railroad to be formed.

Earlier this year, Pan Am Railways and Norfolk Southern Railway announced that they agreed to create an improved rail route between Albany, N.Y., and the greater Boston, Mass., area called the “Patriot Corridor.”

Investments in the Patriot Corridor are expected to improve track quality and customer service, boost train speed and reliability, and increase capacity on the route. PAR and NS each will have a 50 percent interest in the newly formed railroad company, called “Pan Am Southern,” the railroad said.

STB to Discuss CN’s Proposed Takeover of EJ&E

Railfanning.org News Wire — Sat, 08 Nov 2008 03:03:32 +0000

WASHINGTON — The Surface Transportation Board will hold a public meeting on Nov. 18 concerning the Environmental Impact Statement (EIS) related to Canadian National Railway’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Co.

During the public meeting, STB members will be briefed by, and will discuss the EIS with, staff of the agency’s Section of Environmental Analysis (SEA). The meeting will be open for public observation, but not public participation.

On Oct. 30, 2007, Canadian National and Grand Trunk Corp. (collectively known as CN) filed an application with the STB seeking the agency’s approval to acquire control of the EJ&E West Company, a wholly owned, non-railroad subsidiary of the Elgin, Joliet and Eastern Railway Company. EJ&E is a Class II railroad operating approximately 200 miles of track in northeastern Illinois and northwestern Indiana.

STB Issues EA for Northern Columbia Basin Railroad Project

Railfanning.org News Wire — Sat, 08 Nov 2008 03:00:06 +0000

WASHINGTON — The Surface Transportation Board announced that its Section of Environmental Analysis (SEA) and the Washington State Department of Transportation (WSDOT) have issued an Environmental Assessment (EA) for public review and comment concerning the proposed Northern Columbia Basin Railroad Project (Project) in the State of Washington.

Working together as co-lead agencies on the Project’s environmental review, the Board and WSDOT are providing the public 30 days—until Dec. 8 —for the filing of comments on the EA.

STB Releases Christensen Survey

Railfanning.org News Wire — Tue, 04 Nov 2008 02:38:56 +0000

WASHINGTON — The Surface Transportation Board announced that Christensen Associates, a Madison, Wisc.-based economic consulting firm, has completed its 14-month, independent report titled “A Study of Competition in the U.S. Freight Railroad Industry and Analysis of Proposals that Might Enhance Competition.”

The Study is the topic of the Board’s public meeting to be held on Nov. 6.

STB officials say this study takes a comprehensive review of the underlying economics of the railroad industry. The Board anticipates that this analysis will be of great interest to policymakers and stakeholders involved in interstate freight commerce.

STB: CORP Must Sell Line

Railfanning.org News Wire — Sat, 01 Nov 2008 02:25:53 +0000

WASHINGTON – The Surface Transportation Board has ordered the Central Oregon & Pacific Railroad Inc. (CORP) to sell a 111-mile railroad line running from Danebo, Ore., to Cordes, Ore., to The Oregon International Port of Coos Bay.

In a separate decision, the Board granted CORP authority to abandon a 94-mile segment of the Line in the event that a sale of the Line is not completed.

In reaching its decision, the STB found that the Line meets the five “public convenience and necessity” criteria for a forced sale under the “feeder line” provision of the agency’s statute enabling shippers and communities to acquire rail lines where inadequate service is alleged. The STB also found that the Port is financially responsible as a governmental entity and thus eligible to purchase the Line.

The Board ordered CORP to sell the Line to the Port at a price to be determined by the agency after it reviews further filings from the Port and CORP regarding the value of the Line’s steel. Those filings are due by Nov. 7, and the STB said it expects to issue a decision promptly thereafter.

When a selling price is stipulated by the agency, the Port must decide whether to accept the terms of sale established by the Board’s decision. Additionally, the Port, or its chosen operator, will be required to offer employment on a priority basis to qualified CORP employees who previously worked on the Line.

The western 94 miles of the Line are the subject of a CORP application for authority to abandon and discontinue service over that portion of the Line. The STB granted this authority in a separate decision. The STB approved the application based on a finding that CORP’s financial loss operating the western segment warranted approval, but ordered that CORP must not abandon the western segment unless and until the feeder line ends without a sale.

The STB also conditioned its grant of authority by directing CORP to comply with employee-protective and various environmental conditions and to ensure that the abandonment will not create stranded segments of rail line. CORP may, however, discontinue service over the segment, effective Nov. 30.