President's Message 04.18.08

State Should Get On Board to Modernize Railways

Public posturing and political pandering over the Canadian National Railway Company’s proposal to acquire the Elgin, Joliet and Eastern Railway Company is, at best, not helpful, and at worst, a threat to the $22 billion in annual economic value and 38,000 jobs the rail industry generates in the Chicago region.

CN should be applauded for taking a pro-active approach to helping resolve some of the congestion problem that strangles the busiest U.S. rail gateway. Each day, 1,200 trains traverse the Chicago region, a 30-mile-long bottleneck that can take 24 hours to navigate. CN plans to invest $400 million in private funds to buy and upgrade the EJ&E line to establish a bypass around the urban core.

This transaction will reduce congestion, increase efficiency and capacity, and benefit the environment. Equally important is the opportunity to move forward with plans for: 1) better Amtrak access into Union Station by reconfiguring tracks, 2) improved safety by building grade separations so rail and vehicle traffic have fewer encounters and 3) a jump start on planning to introduce suburban loop passenger service via Metra’s proposed STAR Line.

Instead of ovations, CN’s initiative has drawn criticism and abuse from politicians who find it fashionable to criticize industries that fuel the Illinois economy when the opposite should be occurring. CN has opened the door to what should be a win-win situation.

Particularly disconcerting is the silence coming from the state’s transportation agencies and elected officials. State officials are nowhere to be found in what should be an opportunity for local, state and federal officials to collaborate with private industry and the public to strengthen the economy, improve the environment and help communities.

State officials should be offering significant state funding to address concerns of local communities along the EJ&E route. CN is willing to pay some of the costs to alleviate effects of more trains, but the responsibility does not rest solely with the company. Within its obligation to ensure a sound state infrastructure, the State of Illinois should have quickly offered to help fund additional grade crossing improvements in towns that will see more trains. Some of the local ire would no doubt be eased if the state would have only moved quickly to do its part.

Railway modernization is a State of Illinois responsibility. Demand for rail service through Chicago is expected to double in the next 10 years, creating jobs and economic development. But the rail system is antiquated and can barely handle today’s volume. Congress recognizes the problem and, in its last federal transportation bill, designated the Chicago rail bottleneck a “project of national significance.”

State government leaders must work with local and federal officials and the railroads to plan for future needs and help fund solutions. The EJ&E purchase and upgrade is only one of numerous rail initiatives that must be undertaken in the next decade to improve rail efficiency at moving freight and passengers through and around the Chicago metropolitan area.

Unfortunately, the State’s silence is due in no small part to the fact that Illinois government has neglected its capital construction needs for years by failing to approve an infrastructure funding plan and deferring basic long-term construction obligations.

In the case of railways, our state has: 1) shirked its minor and woefully inadequate $100 million pledge to CREATE, a public-private partnership that’s investing $1.5 billion in Chicago area railroad improvements, 2) diverted millions from the Illinois Grade Crossing fund, and 3) stopped funding RTA capital projects three years ago.

By taking initiative to address the company’s Chicago’s railway congestion experiences, CN is demonstrating time-honored business principles for success: innovation, problem-solving, long-range planning, and accountability. We could be better served if government officials would take the same approach when it comes to ensuring the future economic health of our state. There is so much to be done to improve the state’s infrastructure obligations and build for the state’s future economy; this is not the time to engage in verbal squabbles. Let’s get to work at making good things happen.