Rail merger’s effects up for debate

CP, Metra give Lake County competing projections

A Lake County Board resolution approved April 12 opposing a merger between the Canadian Pacific Railway and Kansas City Southern railroad highlighted a difference of opinion between Metra and Canadian Pacific over the potential for increased freight traffic in the county.

Canadian Pacific President and CEO Keith Creel said in an April 20 letter to Lake County Board Chair Sandy Hart obtained by the News-Sun that the merger will not increase freight traffic in the county.

However, an objection to the merger filed by Metra with the federal Surface Transportation Board in March contends the combination of the two railroads will increase freight traffic 380%. Metra’s contention was referenced in the County Board’s resolution.

The Surface Transportation Board will ultimately decide whether to allow the merger after considering all public comment and a responseansweringtheopposition by Canadian Pacific.

The local aspect of the merger’s impact on Lake County began after the County Board unanimously approveditsresolutionobjectingtocombiningtherailroads, and Creel said the county’s opposition was based on incorrect information.

“CP has no plan to increase its freight train traffic in Lake County or on the Metra Milwaukee District North Line which runs through it,” Creel said in the letter. “Under the CP proposal (in Lake County), there is no change for Metra trains operating today.”

Creel said in the letter there will be an increase in freight traffic in Metra’s Milwaukee District West line, which runs between Bensenville and Elgin, but does not touch Lake County.

Metra said in its objection to the Surface Transportation Board, the proposal will ultimately increase freight traffic in Lake County. It contends Canadian Pacific’s plan to put additional trains on tracks running near the Mississippi River and then east into Bensenville is not feasible.

Should the merger be allowed, Metra said in its objection Canadian Pacific’s “north-south Corridor cannot handle the additional traffic resulting from the transaction, which means that even more traffic than is already projected will be rerouted onto Metra’s lines,” referring to tracks shared with Metra running through Lake County.

When Metra becomes concerned with issues such as the merger, Hart said in an email Thursday, the county becomes aware as well. She wants to see more and improved commuter service.

“It is important that Lake County express their concerns to the Surface Transportation Board so that they can be properly vetted through the federally regulated Environmental Impact Statement (EIS) process that is ongoing,” Hart said in an email.

While Metra criticizes the 380% increase in freight traffic resulting from the merger as underestimated, it does not specifically write that those trains will travel through Lake County. It only claims the anticipated capacity will leave no option but for trains to go through the county.

In its resolution, the county asked if the merger is approved it wants the Surface Transpiration Board to charge Metra with dispatching responsibility on its tracks in Lake County which the Canadian Pacific uses.

Creel said in the letter to Hart, the Canadian Pacific obtained the right to dispatch trains on tracks it shares with Metra in a 1985 agreement. He also said his company is better suited to handle the dispatching duties.

“CP dispatchers have visibility both to the Milwaukee District West and North Lines as well as points beyond as far away as St. Paul and Kansas City,” Creel said in the letter. “This allows us coordinate freight and passenger operations far better than dispatchers who have a narrower perspective.”

In the event the merger is allowed, Metra has asked the Surface Transportation Board to hand it the dispatching responsibilities, according to its objection. Metra claims a history of unsatisfactory service from Canadian Pacific.

“With evidence of years of issues with respect to CP dispatching, the dispatching and operational relationship between Metra and CP can no longer be left to the contractual arrangements between them,” Metra said in its objection.

Creel said in the letter, Metra claims in its own data it had a 98.5% on-time performance last year when delays for which Metra was responsible are excluded. It was 93% overall.

“These data reflect CP does in fact give Metra priority, and does so with consistency,” Creel said.

Hart said the county does not totally oppose the merger, but does want to see Metra granted dispatching responsibilities. She also wants the Surface Transportation Board to oversee the merger for its first 10 years.

“We know we can’t predict all of the potential impacts, and we don’t believe Metra or CP can say with 100% certainty what business decisions will be made over the next 10 years that could impact Lake County,” Hart said.