CN inches its way towards Chicago settlement

Canadian National Railways inched its way closer to completing the controversial purchase of an Illinois railroad as the company announced a deal Tuesday with one Chicago-area suburb.

CN said it will create quiet zones and implement noise reduction measures for the stretch of railway that passes through the 15,000-strong bedroom community of Crest Hill, located west of Chicago.

The deal means CN has mollified a second town upset with plans by the Montreal-based rail company to buy the Elgin, Joliet and Eastern Railway for $300 million US and expand rail traffic on these tracks.

"This agreement marks CN's second major mitigation agreement with a community — in August, we reached a similar pact with the City of Joliet — and we continue to work hard to reach fair, comprehensive voluntary agreements with other municipalities along the EJ&E line," said Gordon Trafton, CN's senior vice-president.

Rail problems

CN has faced all kinds of problems since it announced its purchase of the EJ&E railway from U.S. Steel last year.

A number of smaller communities have been outraged by the company's plans to move rail traffic, stuck on other, more congested lines in Chicago to EJ&E track.

CN has said the switch might increase the number of cars and noise level in this area but will benefit residents in other parts of Chicago who already deal with too much railway traffic.

Some of those who live in the suburbs argued that the company is unwilling to spend enough money and time to assuage their concerns.

And U.S. president-elected Barack Obama wrote a letter when he was a Chicago senator backing the citizens in their fight.

No appeal

On Nov. 11, CN lost an appeal to get the U.S. Surface Transportation Board to speed up its consideration of the company's takeover.

The U.S. agency needs to approve any changes for that line which extends from northwest Indiana, through Joliet, Naperville, Aurora and Elgin, to Chicago's northern suburbs.

So far, the STB has delayed its consideration of various aspects of the CN-U.S. Steel deal even though the deal is set to expire on Dec. 31.

"It is now up to the STB to do the right thing, to preserve an important transaction with broad transportation and other public benefits for the Chicago region and the nation," said Hunter Harrison, CN president and chief executive officer, after the federal appeal's court denied the company's request that the STB make a decision by Dec. 1.