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Railroad Mergers Raise Concerns in Barrington

9 hours ago 0

In 2007, Karen Darch pushed for an underpass beneath Canadian National railroad tracks in Barrington along U.S. Route 14. At that time, she had six children and no grandchildren. Now, with workers busy on the project and seven grandchildren later, the $94 million underpass, extending half a mile, is set for completion by next year. However, new railroad mergers may impact her grandkids’ future, adding complexity to the situation.

The mergers are altering North American railroads’ ownership structures, causing uncertainty. Union Pacific has bid $85 billion to take over Norfolk Southern and plans to reroute some trains near Chicago via Canadian National’s network. For years, Darch, an attorney and former Barrington village president, anticipated a second freight track through Barrington. Canadian National already double-tracked up to 10 miles south of Barrington, potentially increasing train speeds from 20 to 40 miles per hour. This, along with 50,000 cars, 800 school bus trips, and 70 Metra trains daily, demands attention.

“If another track is built, it will have greater impacts. More underpasses might be needed, and businesses profiting from rail should contribute financially,” Darch said.

Currently, many associated with railroads await regulatory decisions affecting their lives. Peter Gilbertson, Anacostia Rail Holdings’ CEO, senses changes. He operates six railroads, including in Chicago, Los Angeles, and New York. Though at risk from strategic industry shifts, his focus remains on providing competitive service.

The Surface Transportation Board (STB) recently rejected a Union Pacific request to withhold data, extending review of its proposed takeover by a year. Union Pacific’s claim to improve coast-to-coast service faces skepticism. Larry Gross, an analyst, reported a decline in rail’s share of U.S. freight shipments over 600 miles.

Independent analyst Rick Paterson points out the issue of flat growth over 20 years. Seven state attorneys, major chemical, and grain shippers have opposed the merger. Communities like Barrington shouldn’t wait long for relief post-merger. Ron Batory, a former Federal Railroad Administration head, emphasizes the need for enhanced competition to prevent history from repeating.

Gilbertson’s Anacostia operates 760 miles of track, called short lines, in several cities. They grew in volume while major railroads stagnated due to their adaptable service. Gilbertson first acquired the Chicago South Shore & South Bend Railroad, which hauls steel and other goods near Lake Michigan. The Union Pacific merger could impact this and other short lines significantly.

The merger’s approval would affect freight switching on Chicago’s network. Gilbertson remains uncertain about losses or new opportunities post-merger given Union Pacific hasn’t filed an updated plan. He seeks partnership, not the loss of business. Additionally, he faces losing his 1998-established contract at North America’s busiest ports to a Union Pacific-BNSF joint venture, which now controls them post-selection.

In Barrington, Darch’s advocacy started when Canadian National bought EJ&E Railway. Traffic rose to 20 trains daily, from three. After Canadian National acquisition approval, Barrington didn’t receive federal separation funding, prompting Darch’s extensive advocacy. The underpass now being built is a product of persistence and funding including Canadian National’s contribution due to rail rules.

The EJ&E Railway arc from Waukegan to Joliet and Gary is now desirable, bypassing Chicago’s inner city within 12 hours compared to 35 for others. Darch accepts traffic increase inevitability but insists on separation for safety, akin to Chicago’s 1893 adaptation for similar reasons.

Darch cherishes the train’s historical importance to Barrington yet promotes measures for future coexistence. “We live by the train,” she said, “but we don’t want to die by the train, too.”

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