Deal for Chicago Rail Line Approved
WASHINGTON — The U.S. Surface Transportation Board on Wednesday approved a merger of rail companies, in a move designed to relieve rail and auto traffic congestion in the Chicago area.
The board unanimously approved the Canadian National Railway Co.’s purchase of the Elgin, Joliet & Eastern Railway Co. from U.S. Steel Corp. Canadian National offered to pay $300 million for the line and spend another $140 million to upgrade the line and help communities mitigate the traffic impacts.
There was a lot of politicking around this one – but it came down to some communities against others. And despite the “threat” that the election of Barack Obama was supposed to pose to the deal, common sense prevailed.
This will also be good news for Prince Rupert – as the route from there to the midwest will now see significant time savings.