Canadian National’s rail crossing on Route 14 just east of Route 59 in Barrington. The village is closely watching as federal regulators consider a proposed merger between CN and Kansas City Southern Railway could bring more freight train traffic through town. (Paul Valade | Staff Photographer)
The brawl between railroad giants Canadian National and Canadian Pacific to acquire Kansas City Southern Railway tilted in CN’s direction Friday when officials announced a merger agreement with KCS. But many forces are at play that defy a predictable outcome in the continental dispute touching nerves in the suburbs.
Kansas City Southern’s board of directors hailed what they called a “superior” Canadian National proposal, alarming towns located along CN tracks that they may become collateral damage.
The merger, which still requires U.S. Surface Transportation Board approval, “will meaningfully connect the continent with enhancing competition, offering more choice for customers, and driving environmental stewardship and shareholder value,” CN President JJ Ruest said in a statement.
Unfazed, Canadian Pacific told STB regulators they’re not giving up and the rejection “reflects the extreme price CN has offered.”
In 2008, the STB approved a controversial merger between CN and the smaller Elgin, Joliet and Eastern Railway, which runs through the north, west, and south suburbs, multiplying trains on those tracks when Canadian National took possession. Now there are fears of a repeat with KCS, a major freight carrier that extends into Mexico.
However, “CN faces an uphill battle,” DePaul University and railroad expert Professor Joseph Schwieterman said. “A year ago, the acquisition might have sailed though Washington, but circumstances are different now, under the Biden Administration.”
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