MONTREAL, Que. – Canadian National (CN) Railway has purchased the majority of Elgin, Joliet and Eastern Railway Company.
The deal, worth $301 million, is aimed at improving the fluidity of CN’s rail operations in the Chicago area, the company announced.
Closing is expected to take place in mid-2008.
EJ&E is a Class II railroad operating over 198 main line miles of track around the city of Chicago.
“This acquisition is good news for railroading in Chicago,” announced Hunter Harrison, CEP of CN.
“Chicago is essential to CN’s rail operations, yet it presents us with major operational challenges. This transaction will improve rail operations on the CN system and the rest of the Chicago rail network by moving CN trains out of the urban core to EJ&E lines on the outskirts of the Chicago metropolitan area.”
Harrison added CN will be better positioned to serve the steel industry while improving its own efficiencies.
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