In a letter to the Surface Transportation Board (STB) U.S. Rep. Pete Visclosky, D-1st, and U.S. Sens. Richard Lugar, R-Ind., and Evan Bayh, D-Ind., have expressed their opposition to CN’s request for an expedited environmental review and decision on its pending acquisition of EJ&E Railroad.

“I am grateful to Sens. Lugar and Bayh for joining me in opposition to CN’s request that the STB perform an expedited review of its pending acquisition of EJ&E,” Visclosky said in a statement released on Tuesday. “This is a matter of public concern and the STB should not hasten its ruling for CN’s private gain. The people of Northwest Indiana would be greatly affected by the acquisition and ought to have every opportunity to voice their concerns as it is reviewed by the government.”

On May 13, the statement said, CN filed a request with the STB for a decision on its proposed acquisition of EJ&E to be issued by Dec. 1 “The impetus for the request was the fact that CN’s stock purchase agreement with EJ&E, a wholly-owned subsidiary of the United States Steel Corporation, established a date of Dec. 31, 2008, for completion of the transaction. CN argued that the deal must be completed by then to avoid a monetary loss and an uncertain business environment.”

According to Visclosky’s office, the acquisition “would result in a threefold increase in rail traffic on the existing EJ&E line in Northwest Indiana. With as many as 34 trains per day running on the track, the acquisition would bisect local communities, impeding the flow of automobile traffic and creating a considerable public safety concern. Additionally, the acquisition would create new obstacles to the expansion of the Northern Indiana Commuter Transportation District’s South Shore Line and would hinder the expansion of Gary/Chicago International Airport.”

Posted 5/21/2008