What were you doing during the turbulent decade of the seventies? From 1970 to 1979 the Elgin Joliet & Eastern was still a busy little railroad.
Traffic on the railroad had been gradually declining since 1950. From 1950 to 1959 the EJ&E handled 386 million tons of freight. But in the decade of the sixties total freight tonnage dropped by a quarter, down to 287 million tons.
The 1958 recession had hit the entire railroad industry hard, not just EJ&E. During these same two decades the railroad had lost much of its loose car bridge or overhead traffic, as the larger railroads had arranged for more direct connections rather than using EJ&E. The irony is that this is exactly the kind of traffic that the Canadian National is proposing to return to the railroad.
During the seventies approximately 76% of the EJ&E’s line haul traffic was associated directly with the steel industry. Commodities here included iron and steel articles, inbound raw materials such as coal, coke, scrap and lime, as well as outbound shipments consisting of slag and coke byproducts.
One of the more interesting moves of finished steel during this period consisted of shipments moving from US Steel and Inland Steel mills to the GM Fisher Body Plant, in Willow Springs, IL, interchanged with the Santa Fe Railway at Joliet. This move started when the plant opened in 1953, and lasted until GM finally closed Willow Springs in 1989. The site is now home of the world’s largest parcel sorting facility operated by UPS, Inc.
An additional 14% of EJ&E’s traffic was composed of coal for utility companies, moving primarily in unit train service, with the remaining 10% consisting of miscellaneous products.
Thus, the railroad was heavily dependent on a two-industry market structure for its business fortunes. This simple fact helps to explain much of the postwar history of the EJ&E.
In 1973 domestic steel production reach a peak of 150 million tons for the decade, and the railroad handled an all-time high in iron and steel of tonnage of slight more than 9.5 million tons. (That’s well over half the railroad’s current annual tonnage). Two years later, the railroad experienced one of its worst years for steel traffic with shipments declining to 6.2 million tons.
In 1973 EJ&E moved about 30 million tons of revenue freight, probably its best year of the decade. By 1977 annual volume had dropped slightly to 26.5 million tons. Tonnage volume during the seventies was averaging about twice what it is today.
To compensate for the loss of overhead traffic, and reduce the railroad’s dependence on the steel industry, EJ&E embarked on a very aggressive industrial development program in the late 1960’s. Much of this effort was centered around the town of Plainfield, IL, which back then saw railroads in more positive terms than today.
By 1974 rail-served customers on the west side of Plainfield included Super Valu Stores, Fleischman Distilling Corp., Distillers Ltd., Kerr Glass Manufacturing Corp., Lehigh Portland Cement, Southern Door Company and Wickes Lumber.
Just north of Plainfield, at Walker, the Illinois River branch headed off the mainline towards the towns of Minooka and Morris. This branch was another beehive of industrial development, with large chemical processing facilities constructed by Armak, Airco Industrial Gasses, and Northern Petrochemical (now Quantum).
In February 1975 the EJ&E moved their executive offices from downtown Chicago to a facility adjacent to the East Joliet yard. These offices had been located at 208 South LaSalle Street since May 1, 1914. This was an obvious cost-cutting move that also brought the railroad’s entire local management team together in the same location.
During the seventies the EJ&E remained a busy and noisy railroad with plenty of activity.
Friday, May 2, 2008
Tuesday, April 22, 2008
EJ&E History Lesson
During the course of our recent research on the EJ&E Railway, we have come across a 1966 edition of the Railway's official "Milepost" Newsletter, which has a very interesting article entitled, "Outline of the Railroad". This is an 8 page status report on the EJ&E just 40 short years ago. Here are some highlights from it and the railroad's 1966 Annual Report.
In 1966 the EJ&E was still known by the brand slogan, "Chicago Outer Belt". According to the article,
"A unique aspect of the railroads serving the Chicago area is that there is no continuous route for movement of traffic by one carrier through this point. Railroads leading into the area from every direction all terminate at Chicago and cars destined to go through the City must be transferred from one road to another to continue their movements. The Elgin, Joliet and Eastern Railway, appropriately known as The Chicago Outer Belt, provides a fast route for accomplishing these transfers by moving the cars around the congested central area (sound familiar?)."
In 1966 the Railway had 320 miles of mainline track and included a 10-mile branch line that ran between Aurora and Normantown, IL. EJ&E interchanged with 19 railroads and 7 switch lines at 32 separate points. 20 of these interchange points were located in the state of Illinois between Waukegan and Lynwood. About half these interchange points remain in place today, controlled by Canadian National, Canadian Pacific, Union Pacific and BNSF.
The Western Subdivision of the Joliet Division extended from Joliet to Waukegan, IL. The Eastern Subdivision of the Joliet Division extended from Joliet, IL to Griffith, IN.
Approximately 40,000 cars per month were being handled to and from the 22 rail interchange points located on the Joliet Division (Western and Eastern Subs). That's about 480,000 cars per year.
The major yards on the Joliet Division were East Joliet Yard and Waukegan Yard.
An average of 26 trains per day were arriving and departing East Joliet Yard in a 24 hour period. The Yard was handling about 1,950 cars daily, or about 39,000 cars per month.
In 1966 train volume on the Joliet Division was about evenly spread out between the Western and Eastern Subdivisions, while today about 75 per cent of train volume is concentrated on the Western Subdivision between West Chicago and Joliet.
An average of six trains per day were received and dispatched at the Waukegan Yard. This Yard was handling approximately 13,200 cars per month. Today this Yard is all but abandoned.
According to the railroad's 1966 Annual Report, the railroad handled 29.9 million revenue tons that year, or about twice what it handles today.
The Joliet Division had already begun to handle unit coal trains, which ran in addition to the regularly scheduled manifest trains previously described. Destinations in 1966 included the Waukegan station of Commonwealth Edison, the Dean Mitchell station of Northern Indiana Public Service Company, and the Gary Works of U.S. Steel. These trains consisted of 100 to 160 cars of 7,000 to 10,000 tons total capacity. EJ&E was handling about 19 unit trains per week.
The 1966 Annual Report shows a total of 524,451 revenue cars handled, with an average of 57.08 tons per loaded car and an average length of haul of 34 miles. That year the railroad still handled a large amount of steel products, which accounted for over 40% of all tonnage, followed closely by coal. These were the two dominant commodity groups.
The EJ&E of 1966 was a busy, heavily used, and noisy freight railroad. The difference between then and now is that very few people lived in the region to be annoyed by all the heavy rail activity.
In 1966 the EJ&E was still known by the brand slogan, "Chicago Outer Belt". According to the article,
"A unique aspect of the railroads serving the Chicago area is that there is no continuous route for movement of traffic by one carrier through this point. Railroads leading into the area from every direction all terminate at Chicago and cars destined to go through the City must be transferred from one road to another to continue their movements. The Elgin, Joliet and Eastern Railway, appropriately known as The Chicago Outer Belt, provides a fast route for accomplishing these transfers by moving the cars around the congested central area (sound familiar?)."
In 1966 the Railway had 320 miles of mainline track and included a 10-mile branch line that ran between Aurora and Normantown, IL. EJ&E interchanged with 19 railroads and 7 switch lines at 32 separate points. 20 of these interchange points were located in the state of Illinois between Waukegan and Lynwood. About half these interchange points remain in place today, controlled by Canadian National, Canadian Pacific, Union Pacific and BNSF.
The Western Subdivision of the Joliet Division extended from Joliet to Waukegan, IL. The Eastern Subdivision of the Joliet Division extended from Joliet, IL to Griffith, IN.
Approximately 40,000 cars per month were being handled to and from the 22 rail interchange points located on the Joliet Division (Western and Eastern Subs). That's about 480,000 cars per year.
The major yards on the Joliet Division were East Joliet Yard and Waukegan Yard.
An average of 26 trains per day were arriving and departing East Joliet Yard in a 24 hour period. The Yard was handling about 1,950 cars daily, or about 39,000 cars per month.
In 1966 train volume on the Joliet Division was about evenly spread out between the Western and Eastern Subdivisions, while today about 75 per cent of train volume is concentrated on the Western Subdivision between West Chicago and Joliet.
An average of six trains per day were received and dispatched at the Waukegan Yard. This Yard was handling approximately 13,200 cars per month. Today this Yard is all but abandoned.
According to the railroad's 1966 Annual Report, the railroad handled 29.9 million revenue tons that year, or about twice what it handles today.
The Joliet Division had already begun to handle unit coal trains, which ran in addition to the regularly scheduled manifest trains previously described. Destinations in 1966 included the Waukegan station of Commonwealth Edison, the Dean Mitchell station of Northern Indiana Public Service Company, and the Gary Works of U.S. Steel. These trains consisted of 100 to 160 cars of 7,000 to 10,000 tons total capacity. EJ&E was handling about 19 unit trains per week.
The 1966 Annual Report shows a total of 524,451 revenue cars handled, with an average of 57.08 tons per loaded car and an average length of haul of 34 miles. That year the railroad still handled a large amount of steel products, which accounted for over 40% of all tonnage, followed closely by coal. These were the two dominant commodity groups.
The EJ&E of 1966 was a busy, heavily used, and noisy freight railroad. The difference between then and now is that very few people lived in the region to be annoyed by all the heavy rail activity.
Sunday, April 20, 2008
The Gospel According to Barrington
One of the more entertaining groups opposed to the CN/EJ&E acquisition is a group calling itself "Fight Rail Congestion" dot com. Of course this is a group that has done absolutely nothing to reduce rail congestion, they are just opposed to having it in their back yards as opposed to my back yard.
But for the sake of argument let's examine their version of national transportation policy. In their recent full page ads in the Chicago Tribune, which incidentally were printed on newsprint produced in Canada, this anti-CN group made this remarkable statement of policy,
"If this deal isn't approved, it won't mean that goods won't get to market. It just means that they won't get there a few hours faster."
So according to this bunch,
* Transit time is NOT important.
* Delay time is NOT important.
* The cost of delays is NOT important.
OK, but in all fairness folks why stop with just the EJ&E route, why stop in just Barrington and Lake Zurich? In all fairness let's apply what I will call the "Barrington Formula" to regional transportation policy.
If you sincerely believe in the "Barrington Formula" then here's what our regional transportation policy would look like.
No moderization and expansion of O'Hare International Airport. No planning for the expansion of the Gary-Chicago Airport. No planning for another regional airport in Peotone, IL.
If you believe in the "Barrington Formula", then here are some additional steps that need to be taken immediately.
Stop the widening of I-294, the Tri-State Tollway immediately. Cancel all plans for the widening of I-55 in Will County, between Bolingbrook and Joliet (are you listening Will County Board?). And according to the "Barrington Formula" the southern extension of I-355 should have never been built, since delays are NOT important.
And with all the trucks (and freight) that travel on the rebuilt Kingery Expressway in the southern suburbs, that project was clearly a major mistake according to the "Barrington Formula".
If you believe in the "Barrington Formula" the Joliet Army Arsenal would still be a giant hazardous waste dump waiting to be cleaned up instead of a high-powered engine of regional economic growth.
Remember, according to Fight Rail Congestion dot com, getting something there a few hours (or days or weeks) later does NOT matter, as long as it gets there eventually.
Is this really the economic future we want for the Northeast Illinois region? I certainly hope not.
But for the sake of argument let's examine their version of national transportation policy. In their recent full page ads in the Chicago Tribune, which incidentally were printed on newsprint produced in Canada, this anti-CN group made this remarkable statement of policy,
"If this deal isn't approved, it won't mean that goods won't get to market. It just means that they won't get there a few hours faster."
So according to this bunch,
* Transit time is NOT important.
* Delay time is NOT important.
* The cost of delays is NOT important.
OK, but in all fairness folks why stop with just the EJ&E route, why stop in just Barrington and Lake Zurich? In all fairness let's apply what I will call the "Barrington Formula" to regional transportation policy.
If you sincerely believe in the "Barrington Formula" then here's what our regional transportation policy would look like.
No moderization and expansion of O'Hare International Airport. No planning for the expansion of the Gary-Chicago Airport. No planning for another regional airport in Peotone, IL.
If you believe in the "Barrington Formula", then here are some additional steps that need to be taken immediately.
Stop the widening of I-294, the Tri-State Tollway immediately. Cancel all plans for the widening of I-55 in Will County, between Bolingbrook and Joliet (are you listening Will County Board?). And according to the "Barrington Formula" the southern extension of I-355 should have never been built, since delays are NOT important.
And with all the trucks (and freight) that travel on the rebuilt Kingery Expressway in the southern suburbs, that project was clearly a major mistake according to the "Barrington Formula".
If you believe in the "Barrington Formula" the Joliet Army Arsenal would still be a giant hazardous waste dump waiting to be cleaned up instead of a high-powered engine of regional economic growth.
Remember, according to Fight Rail Congestion dot com, getting something there a few hours (or days or weeks) later does NOT matter, as long as it gets there eventually.
Is this really the economic future we want for the Northeast Illinois region? I certainly hope not.
Thursday, April 17, 2008
Real EJ&E Grade Crossing Impact
In the sometimes heated and hysterical debate over the impact of increased CN freight train traffic on communities along the EJ&E, much has been made of the potential for increased grade crossing delays.
According to data submitted by Canadian National to the Surface Transportation Board, most communities along the EJ&E will see between 20 and 45 trains per day, with the overwhelming majority in the 20 to 35 trains per day range. But how bad is the situation along the EJ&E compared with the rest of the region?
In 2002 the Illinois Commerce Commission completed a comprehensive study of rail-highway grade crossing delays in Northeastern Illinois. Here's the ICC's ranking of the top 10 regional rail routes, for grade crossing delay, showing the actual daily train counts (according to the ICC).
BNSF - Aurora to Cicero: 140 trains per day.
UP - Metra Harvard Sub: 62 trains per day.
UP - Metra West Line: 110 trains per day.
CSX Main Line Blue Island to 59th St: 41 trains per day.
Metra - Milwaukee North Line: 94 trains per day.
BRC - Clearing to Craigin: 32 trains per day.
IHB - Calumet Park to Blue Island: 87 trains per day.
Metra - Milwaukee West Line: 69 trains per day.
UP (CWI-CEI) Main Line: 57 trains per day.
CN/IC (GTW) Main Line: 26 trains per day.
In terms of total hours of daily motorist delay, according to the ICC the worst crossings were in densely populated urban areas near large rail classification yards. These areas were located primarily in the southern suburbs of Blue Island, Dixmoor, Riverdale, Chicago Ridge and Evergreen Park.
Another very congested area was in the vicinity of Chicago's Midway Airport, along the mainline of the Belt Railway of Chicago, running parallel to the east side of Cicero Avenue. (This area is visible from CTA Orange Line trains arriving or departing from the Midway Airport station.) We are not aware of any plans by Canadian National to construct a classification yard on the EJ&E in Illinois.
The reality is that Chicago is (and has been) the railroad capital of the world. In 2002, according to ICC figures, 19 freight railroads operated an average of 740 trains of all shapes and sizes each weekday in Northeastern Illinois.
According to rail industry figures, the largest single commodity group for tons originated is coal, which means that many of these trains were either loaded or empty unit coal trains. These unit trains are typically well in excess of a mile in length, and tend to move at relatively slow speeds.
During the same time period Metra was operating an average of 660 daily trains, and Amtrak contributed another 100 daily trains to the mix. Since 2002 these numbers have increased for both freight and passenger.
In 2002 there were 1,732 public at-grade highway-rail crossings located in the six counties of Northeastern Illinois. According to the ICC Report regional grade crossing delays impact half a million motorists daily, and cost the region between $74 and $120 million annually. The reality is that grade crossing delays are a fact of life in this region regardless of what community you reside in.
Illinois has approximately 7,200 miles of railroad track, the second largest rail system of any state in the nation (after Texas). There are over 41 railroad companies that operate their trains in and through Illinois, which is the third highest in the nation. About 500 million tons of freight move on Illinois' rail systems each year which is the most of any state in the nation.
Approximately 20 million tons of chemicals, many of which are hazardous, are transported on Illinois' rail systems. The fastest growing hazmat commodity group is ethanol. Large quantities of ethanol move in railroad tank cars from producers in states like Iowa and South Dakota, through Illinois, to refineries in Indiana and New Jersey.
Two of the largest producers of ethanol, ADM and AE Staley, are headquartered in Decatur, IL. Increasing amounts of chemical fertilizer also move through Illinois to support the increased demand for corn and soybeans created by the ethanol boom.
(It should also be noted that the Federal programs to encourage increased use, production and transport of ethanol, have been supported by virtually the entire Illinois Congressional delegation, led by Senator Dick Durbin.)
Grade crossing delays are clearly a regional problem and require a regional solution. Why do communities like Barrington, Lake Zurich, and Frankfort, deserve a better deal here than all the rest of us?
According to data submitted by Canadian National to the Surface Transportation Board, most communities along the EJ&E will see between 20 and 45 trains per day, with the overwhelming majority in the 20 to 35 trains per day range. But how bad is the situation along the EJ&E compared with the rest of the region?
In 2002 the Illinois Commerce Commission completed a comprehensive study of rail-highway grade crossing delays in Northeastern Illinois. Here's the ICC's ranking of the top 10 regional rail routes, for grade crossing delay, showing the actual daily train counts (according to the ICC).
BNSF - Aurora to Cicero: 140 trains per day.
UP - Metra Harvard Sub: 62 trains per day.
UP - Metra West Line: 110 trains per day.
CSX Main Line Blue Island to 59th St: 41 trains per day.
Metra - Milwaukee North Line: 94 trains per day.
BRC - Clearing to Craigin: 32 trains per day.
IHB - Calumet Park to Blue Island: 87 trains per day.
Metra - Milwaukee West Line: 69 trains per day.
UP (CWI-CEI) Main Line: 57 trains per day.
CN/IC (GTW) Main Line: 26 trains per day.
In terms of total hours of daily motorist delay, according to the ICC the worst crossings were in densely populated urban areas near large rail classification yards. These areas were located primarily in the southern suburbs of Blue Island, Dixmoor, Riverdale, Chicago Ridge and Evergreen Park.
Another very congested area was in the vicinity of Chicago's Midway Airport, along the mainline of the Belt Railway of Chicago, running parallel to the east side of Cicero Avenue. (This area is visible from CTA Orange Line trains arriving or departing from the Midway Airport station.) We are not aware of any plans by Canadian National to construct a classification yard on the EJ&E in Illinois.
The reality is that Chicago is (and has been) the railroad capital of the world. In 2002, according to ICC figures, 19 freight railroads operated an average of 740 trains of all shapes and sizes each weekday in Northeastern Illinois.
According to rail industry figures, the largest single commodity group for tons originated is coal, which means that many of these trains were either loaded or empty unit coal trains. These unit trains are typically well in excess of a mile in length, and tend to move at relatively slow speeds.
During the same time period Metra was operating an average of 660 daily trains, and Amtrak contributed another 100 daily trains to the mix. Since 2002 these numbers have increased for both freight and passenger.
In 2002 there were 1,732 public at-grade highway-rail crossings located in the six counties of Northeastern Illinois. According to the ICC Report regional grade crossing delays impact half a million motorists daily, and cost the region between $74 and $120 million annually. The reality is that grade crossing delays are a fact of life in this region regardless of what community you reside in.
Illinois has approximately 7,200 miles of railroad track, the second largest rail system of any state in the nation (after Texas). There are over 41 railroad companies that operate their trains in and through Illinois, which is the third highest in the nation. About 500 million tons of freight move on Illinois' rail systems each year which is the most of any state in the nation.
Approximately 20 million tons of chemicals, many of which are hazardous, are transported on Illinois' rail systems. The fastest growing hazmat commodity group is ethanol. Large quantities of ethanol move in railroad tank cars from producers in states like Iowa and South Dakota, through Illinois, to refineries in Indiana and New Jersey.
Two of the largest producers of ethanol, ADM and AE Staley, are headquartered in Decatur, IL. Increasing amounts of chemical fertilizer also move through Illinois to support the increased demand for corn and soybeans created by the ethanol boom.
(It should also be noted that the Federal programs to encourage increased use, production and transport of ethanol, have been supported by virtually the entire Illinois Congressional delegation, led by Senator Dick Durbin.)
Grade crossing delays are clearly a regional problem and require a regional solution. Why do communities like Barrington, Lake Zurich, and Frankfort, deserve a better deal here than all the rest of us?
Sunday, April 6, 2008
STAR Line Reality Check
There seems to be a lot of public hand wringing and hysteria over the impact of the CN/EJ&E acquisition on the future of a proposed Metra route known as the STAR Line. Well guess what sports fans? The STAR Line route was in serious trouble long before Canadian National made their offer to purchase EJ&E. And the source of this astounding revelation is none other than Metra’s very own 1999 Outer Circumferential Commuter Rail Feasibility Study.
But first here’s a more relevant question for Metra’s Board of Directors. If the STAR Line is as important as everyone now says it is, why didn’t Metra go ahead and buy the EJ&E itself? Or is Metra trying to get something for nothing?
The STAR Line concept has been kicking around for about 20 years now. Yet to our knowledge Metra never contemplated making a serious offer to purchase the EJ&E. We’re also not aware of any negotiations between Metra and EJ&E for a Purchase of Service of Agreement (PSA). For the past 20 years the STAR Line has been like the weather, everyone talks about it but no one ever does anything.
In 1999 Metra’s outside consulting firm of T-Y-LIN International – Bascor completed a detailed engineering analysis of the entire EJ&E Railway line within Illinois, from Waukegan all the way around to Lynwood. Their final report was released in April 1999 and is a public document available on Metra’s website.
That report included a detailed analysis of current and projected freight operations and volumes on the EJ&E, as well as substantial feedback from EJ&E management on the subject of commuter rail service on their railroad. The report’s findings are mixed at best, but we think they speak for themselves. Relevant excerpts are presented as follows.
The report’s Foreword states:
“Freight railroad operations and traffic volumes are subject to change at any time on any existing freight railroad. Growth of the national economy, improved competitive costs produced by railroads, or future railroad mergers could all have a major influence on the potential cost of implementing commuter service."
The report’s Executive Summary states:
“The EJ&E projects an increase in freight train traffic in the near future, consistent with the fairly recent resurgence of the railroad industry. EJ&E management indicated that specific long-term levels of freight traffic are difficult or impossible to predict at this time, but they will need to retain their existing trackage and other infrastructure to conduct their future business. This situation could require Metra to create its own parallel infrastructure in order to consider implementation of any potential new commuter service.”
The Executive Summary goes on to state,
“In addition, EJ&E management stated that their track capacity would be needed for present and future operations…allowing EJ&E exclusive use of their present physical plant without interference from Metra commuter operations."
Section 2.4, Freight Operations, states:
“It must be recognized that the primary responsibility of the EJ&E or any other freight railroad is their freight traffic.”
Section 3.1 of the Report covers Projected Freight Operations. That sections states:
“The freight railroad industry has enjoyed a resurgence in recent years. As the existing rail capacity through Chicago is becoming limited, there is interest by other railroads to bypass bottlenecks that delay freight movements in some classification yards closer to Chicago’s downtown. The EJ&E has been actively pursuing railroad freight business that would utilize their right-of-way and consequently provide additional revenue from trackage-rights agreements.”
The report goes on to detail ongoing negotiations between EJ&E and both Union Pacific and Canadian National for extensive trackage rights agreements that ultimately covered virtually the entire length of the EJ&E. Several years later EJ&E also entered into a trackage rights agreement with BNSF for operations between Eola and Joliet.
Under Section 4.4, Single Vs. Double Track, the report states:
“EJ&E management stated at the outset of the Study, and reiterated in subsequent discussions, that their existing track capacity would be required for present and future freight operations. This would require Metra to construct a separate and virtually exclusive track for commuter train operations.”
Under Section 5.6, Additional Infrastructure the report states,
“A lot will depend upon the levels of EJ&E freight traffic that are current (and projected) at the time when such a decision might be made.”
From Metra’s very own report, it’s obvious that the lack of capacity on the EJ&E due to rail freight operations was a major issue and concern as early as 1999. And from 1999 until September 2007 the problem only got worse. In the interest of fairness critics of the CN/EJ&E deal might want to keep that fact in mind.
But first here’s a more relevant question for Metra’s Board of Directors. If the STAR Line is as important as everyone now says it is, why didn’t Metra go ahead and buy the EJ&E itself? Or is Metra trying to get something for nothing?
The STAR Line concept has been kicking around for about 20 years now. Yet to our knowledge Metra never contemplated making a serious offer to purchase the EJ&E. We’re also not aware of any negotiations between Metra and EJ&E for a Purchase of Service of Agreement (PSA). For the past 20 years the STAR Line has been like the weather, everyone talks about it but no one ever does anything.
In 1999 Metra’s outside consulting firm of T-Y-LIN International – Bascor completed a detailed engineering analysis of the entire EJ&E Railway line within Illinois, from Waukegan all the way around to Lynwood. Their final report was released in April 1999 and is a public document available on Metra’s website.
That report included a detailed analysis of current and projected freight operations and volumes on the EJ&E, as well as substantial feedback from EJ&E management on the subject of commuter rail service on their railroad. The report’s findings are mixed at best, but we think they speak for themselves. Relevant excerpts are presented as follows.
The report’s Foreword states:
“Freight railroad operations and traffic volumes are subject to change at any time on any existing freight railroad. Growth of the national economy, improved competitive costs produced by railroads, or future railroad mergers could all have a major influence on the potential cost of implementing commuter service."
The report’s Executive Summary states:
“The EJ&E projects an increase in freight train traffic in the near future, consistent with the fairly recent resurgence of the railroad industry. EJ&E management indicated that specific long-term levels of freight traffic are difficult or impossible to predict at this time, but they will need to retain their existing trackage and other infrastructure to conduct their future business. This situation could require Metra to create its own parallel infrastructure in order to consider implementation of any potential new commuter service.”
The Executive Summary goes on to state,
“In addition, EJ&E management stated that their track capacity would be needed for present and future operations…allowing EJ&E exclusive use of their present physical plant without interference from Metra commuter operations."
Section 2.4, Freight Operations, states:
“It must be recognized that the primary responsibility of the EJ&E or any other freight railroad is their freight traffic.”
Section 3.1 of the Report covers Projected Freight Operations. That sections states:
“The freight railroad industry has enjoyed a resurgence in recent years. As the existing rail capacity through Chicago is becoming limited, there is interest by other railroads to bypass bottlenecks that delay freight movements in some classification yards closer to Chicago’s downtown. The EJ&E has been actively pursuing railroad freight business that would utilize their right-of-way and consequently provide additional revenue from trackage-rights agreements.”
The report goes on to detail ongoing negotiations between EJ&E and both Union Pacific and Canadian National for extensive trackage rights agreements that ultimately covered virtually the entire length of the EJ&E. Several years later EJ&E also entered into a trackage rights agreement with BNSF for operations between Eola and Joliet.
Under Section 4.4, Single Vs. Double Track, the report states:
“EJ&E management stated at the outset of the Study, and reiterated in subsequent discussions, that their existing track capacity would be required for present and future freight operations. This would require Metra to construct a separate and virtually exclusive track for commuter train operations.”
Under Section 5.6, Additional Infrastructure the report states,
“A lot will depend upon the levels of EJ&E freight traffic that are current (and projected) at the time when such a decision might be made.”
From Metra’s very own report, it’s obvious that the lack of capacity on the EJ&E due to rail freight operations was a major issue and concern as early as 1999. And from 1999 until September 2007 the problem only got worse. In the interest of fairness critics of the CN/EJ&E deal might want to keep that fact in mind.
Wednesday, April 2, 2008
Time For Straight Talk on CN/EJ&E
Leaders in the northwest suburban community of Barrington are complaining about a proposal by Canadian National Railway to buy the EJ&E rail line. For Barrington, the plan would put up to 20 trains a day on a line that currently carries only five, but was recently upgraded by the EJ&E Railway itself precisely to accommodate these kinds of increased volumes.
Anyone who lives in places like Wheaton, Glen Ellyn, Hinsdale or Downers Grove knows that wonderful communities can and do exist with well over a hundred freight, Amtrak and Metra trains per day passing through them. The morning and evening rush hours in downtown Barrington actually resemble these other communities thanks to the passage of some 62 daily Metra passenger trains, most of which stop there, creating gridlock in the downtown area while they load or unload passengers. And while Metra is actively planning to increase service (and grade crossing delays) on this route, Barrington’s wrath seems to be reserved solely for freight trains.
The local NIMBY opposition has been joined by U.S. Senator Dick Durbin, but to quote the cartoon character Pogo, “we have met the enemy and he is us”. Conspicuously absent in Senator Durbin’s numerous press releases and public pronouncements is any acknowledgment of his own very direct responsibility for the current predicament faced by his constituents.
We already have a solution for the region’s rail congestion problems, an extraordinary public-private partnership called CREATE. In 2005 its supporters were led to believe by Senator Durbin, Congressman William Lipinksi and other elected officials that CREATE would receive a substantial influx of funds under the Federal surface transportation reauthorization bill known as SAFETEA-LU. While rail freight projects in Ohio and California were generously funded, CREATE received what amounted to pocket change, and has languished in limbo ever since. The plain truth is that if CREATE had received anything close to full funding in 2005 we would not be having this debate today.
The real issue is this: People in Barrington don’t want to wait in their cars (anymore than they already do for Metra trains). The flaw in Barrington’s argument is that the delays they face are not anything special or extraordinary compared with the rest of the region.
We recently took grade crossing delays for the six county region documented in a 2002 Illinois Commerce Commission study and compared them with the projected increased delays along the EJ&E. It appears that the increased crossing delays along the EJ&E route will still be considerably less than those being experienced every day by numerous communities in the region, including my hometown of Downers Grove.
Of course, complaining about inconvenience alone is unlikely to carry the day, so Barrington officials such as President Karen Darch have resorted to portraying trains as unusual safety hazards. Among her stated concerns is blocked access to Advocate Good Shepard Hospital in Barrington, a Level 2 Trauma Center.
The question is, what about other communities?
Advocate Good Samaritan Hospital in Downers Grove, for example, is the only Level 1 Trauma Center in all of DuPage County. This facility has been dealing with grade crossing delays caused by Amtrak, Metra and BNSF trains for years. We’ve been waiting almost 10 years for full funding of a grade separation project at Belmont Road to deal with this serious public safety issue.
My question for Senator Durbin (and 13th District Congresswoman Judy Biggert) is what, exactly have you been doing in the last 10 years to secure funds for Downers Grove? Are you suggesting that the public safety concerns of citizens in Barrington are greater than those in communities such as Downers Grove? Why no press conferences to decry grade crossing delays in Blue Island, Des Plaines, Downers Grove, La Grange and other suburbs?
In 2002, as part of a study originally requested by the Illinois Congressional delegation, the Illinois Commerce Commission came to this stunning conclusion.
“Neither IDOT, ICC, the railroads, or the affected communities alone, or in combination, have the financial resources necessary to make a significant improvement in the amount of delay currently being experienced at grade crossings…the grade crossing delay problem is likely to worsen. A new program…is necessary in order to reduce delays at grade crossings in northeastern Illinois.”
Simply making Canadian National the scapegoat here solves absolutely nothing.
The real problem is not the action of CN, or any other railroad, but rather the continuing ineptitude and inaction of our elected officials and public agencies. By following the lead of Senator Durbin, and other elected officials, Chicago’s status as a robust transportation center could be at risk. If we as a region are not careful, we could wind up with the little economic engine that couldn’t.
Anyone who lives in places like Wheaton, Glen Ellyn, Hinsdale or Downers Grove knows that wonderful communities can and do exist with well over a hundred freight, Amtrak and Metra trains per day passing through them. The morning and evening rush hours in downtown Barrington actually resemble these other communities thanks to the passage of some 62 daily Metra passenger trains, most of which stop there, creating gridlock in the downtown area while they load or unload passengers. And while Metra is actively planning to increase service (and grade crossing delays) on this route, Barrington’s wrath seems to be reserved solely for freight trains.
The local NIMBY opposition has been joined by U.S. Senator Dick Durbin, but to quote the cartoon character Pogo, “we have met the enemy and he is us”. Conspicuously absent in Senator Durbin’s numerous press releases and public pronouncements is any acknowledgment of his own very direct responsibility for the current predicament faced by his constituents.
We already have a solution for the region’s rail congestion problems, an extraordinary public-private partnership called CREATE. In 2005 its supporters were led to believe by Senator Durbin, Congressman William Lipinksi and other elected officials that CREATE would receive a substantial influx of funds under the Federal surface transportation reauthorization bill known as SAFETEA-LU. While rail freight projects in Ohio and California were generously funded, CREATE received what amounted to pocket change, and has languished in limbo ever since. The plain truth is that if CREATE had received anything close to full funding in 2005 we would not be having this debate today.
The real issue is this: People in Barrington don’t want to wait in their cars (anymore than they already do for Metra trains). The flaw in Barrington’s argument is that the delays they face are not anything special or extraordinary compared with the rest of the region.
We recently took grade crossing delays for the six county region documented in a 2002 Illinois Commerce Commission study and compared them with the projected increased delays along the EJ&E. It appears that the increased crossing delays along the EJ&E route will still be considerably less than those being experienced every day by numerous communities in the region, including my hometown of Downers Grove.
Of course, complaining about inconvenience alone is unlikely to carry the day, so Barrington officials such as President Karen Darch have resorted to portraying trains as unusual safety hazards. Among her stated concerns is blocked access to Advocate Good Shepard Hospital in Barrington, a Level 2 Trauma Center.
The question is, what about other communities?
Advocate Good Samaritan Hospital in Downers Grove, for example, is the only Level 1 Trauma Center in all of DuPage County. This facility has been dealing with grade crossing delays caused by Amtrak, Metra and BNSF trains for years. We’ve been waiting almost 10 years for full funding of a grade separation project at Belmont Road to deal with this serious public safety issue.
My question for Senator Durbin (and 13th District Congresswoman Judy Biggert) is what, exactly have you been doing in the last 10 years to secure funds for Downers Grove? Are you suggesting that the public safety concerns of citizens in Barrington are greater than those in communities such as Downers Grove? Why no press conferences to decry grade crossing delays in Blue Island, Des Plaines, Downers Grove, La Grange and other suburbs?
In 2002, as part of a study originally requested by the Illinois Congressional delegation, the Illinois Commerce Commission came to this stunning conclusion.
“Neither IDOT, ICC, the railroads, or the affected communities alone, or in combination, have the financial resources necessary to make a significant improvement in the amount of delay currently being experienced at grade crossings…the grade crossing delay problem is likely to worsen. A new program…is necessary in order to reduce delays at grade crossings in northeastern Illinois.”
Simply making Canadian National the scapegoat here solves absolutely nothing.
The real problem is not the action of CN, or any other railroad, but rather the continuing ineptitude and inaction of our elected officials and public agencies. By following the lead of Senator Durbin, and other elected officials, Chicago’s status as a robust transportation center could be at risk. If we as a region are not careful, we could wind up with the little economic engine that couldn’t.
CN/EJ&E MYTHS VS. FACTS - The Sequel
In the March 30th edition of the Chicago Tribune, our friends in Barrington paid for a full-page advertisement to once again express their strong opposition to the CN/EJ&E deal. We found the ad amusing and staggering in the amount of false information and half-truths it contained, masquerading as facts.
We thought it might interesting (and useful) to compare Barrington’s “phony facts” with some real facts.
Phony Fact 1: Rail traffic congestion in the Chicago region will not decrease as a result of this deal.
Real Facts 1: Here’s what the truth looks like.
* Freight traffic will decrease substantially on the line between Franklin Park and Leithton, a route with 19 trains per day on it now, but Metra has already staked a claim to this capacity for more passenger trains.
* Freight traffic will decrease on several CN lines in southern Cook County but many communities in that region have already asked for CN’s cooperation in an aggressive regional business development program. Unlike Barrington, some communities think that rail-based economic development’s actually a good thing.
*Ultimately this deal is a lot like the expansion of O’Hare International Airport, the rebuilding of the Dan Ryan Expressway, and the I-355 extension (which the Barrington folks probably thought were all bad ideas too). In the short-term there will be some significant reductions in congestion and delays in many locations. In the longer term, given Chicago’s natural and historic role as a global transportation hub, it’s difficult for anyone to accurately predict exactly what will occur.
Phony Fact 2: CN is trying to create a second major regional freight corridor which the region cannot afford.
Real Facts 2: Here’s what the truth looks like.
* The EJ&E, not CN, is actually the one creating the next major regional freight corridor. In the last 10 years EJ&E has successfully negotiated trackage rights agreements with BNSF, Canadian National and Union Pacific, without any regulatory oversight or environmental impact statements whatsoever.
* As a result traffic volumes have grown consistently on the EJ&E. Volume between West Chicago and Joliet has doubled in the past 10 years and continues to grow. In 2007 WOW Logistics opened a new 350,000 sq. ft. warehouse on the EJ&E in Aurora, one of the largest public warehouses in the region.
*Union Pacific built a new track connection with the EJ&E at West Chicago to handle the increased volume (like 135-car unit coal trains), and in 2005 EJ&E completed construction of a new 9,000-foot siding on its line just west of Barrington.
Phony Fact 3: CN won’t “show us the money” to pay for its fair share of grade-crossing mitigation costs.
Real Facts 3: Here’s what the truth looks like.
* According to Metra’s 1999 STAR Line Feasibility Study there are a total of 130 highway or road grade crossings on the EJ&E in Illinois. 21 percent of those grade crossings are for private roads, described in the study as “gravel” or “dirt”. Do these roads really need grade separations like opponents are demanding?
* According to the Federal Railroad Administration, “grade separations are generally funded by the States’ DOT and local communities. Railroads are not generally required to contribute.” But in this case CN has already volunteered to do so, just like CSXT and NS did in Cleveland, OH in 1999 when they acquired Conrail.
* In 2005, then Speaker of the United States House of Representatives Dennis Hastert convinced American and Illinois taxpayers that we needed to pay for the mess a railroad was creating. Speaker Hastert included a $7 million earmark in the Federal Surface Transportation Reauthorization bill, SAFETEA-LU, bill for a grade crossing separation project in Elburn, IL. But the railroad(s) involved in creating that “mess” were the Union Pacific and the Northeast Illinois Regional Commuter Railroad.
Phony Fact 4: This deal won’t benefit the northern Illinois economy one bit. CN intermodal trains will use Chicago “as a pass through.”
Real Facts 4: Here’s what the truth looks like.
* Chicago’s rail hub is the largest in the U.S. and the third largest intermodal container/trailer port in the world, following only Hong Kong and Singapore. Does any rational person actually believe that CN is not going to actively serve a market this size?
* Wal-Mart, the world’s largest retailer and a huge importer of Asian goods, has a 3.5 million square foot warehouse located just south of Joliet, IL. In fact the EJ&E line runs just north of this facility. Does any rational person actually believe that CN is not going to actively serve a customer of this size in this market?
* Like air traffic at O’Hare International Airport, about one-third of rail traffic moving into the Chicago area today only “changes trains” here and keeps moving through the metropolitan region. This is true of ALL the railroads operating in the Chicago region, not just Canadian National. It’s also a well-known fact that both CN and Canadian Pacific are the only Class One freight railroads with routes that actually run through Chicago rather than terminating here.
* The flow of commuter traffic in the region is already “continuously gridlocked" in dozens of suburban communities. But the railroad causing the most commuter gridlock today is not Canadian National but rather the Northeast Illinois Regional Commuter Railroad Corporation, also known as Metra.
The real danger and threat to the future of economic growth in northern Illinois does not come from the Canadian National, or any railroad for that matter. It comes from communities like Columbus, OH and Memphis, TN, which are making millions of dollars of infrastructure improvements to facilitate “the free flow of commerce”, while we set up artificial barriers to commerce and engage in silly arguments about real vs. “phony” benefits.
We thought it might interesting (and useful) to compare Barrington’s “phony facts” with some real facts.
Phony Fact 1: Rail traffic congestion in the Chicago region will not decrease as a result of this deal.
Real Facts 1: Here’s what the truth looks like.
* Freight traffic will decrease substantially on the line between Franklin Park and Leithton, a route with 19 trains per day on it now, but Metra has already staked a claim to this capacity for more passenger trains.
* Freight traffic will decrease on several CN lines in southern Cook County but many communities in that region have already asked for CN’s cooperation in an aggressive regional business development program. Unlike Barrington, some communities think that rail-based economic development’s actually a good thing.
*Ultimately this deal is a lot like the expansion of O’Hare International Airport, the rebuilding of the Dan Ryan Expressway, and the I-355 extension (which the Barrington folks probably thought were all bad ideas too). In the short-term there will be some significant reductions in congestion and delays in many locations. In the longer term, given Chicago’s natural and historic role as a global transportation hub, it’s difficult for anyone to accurately predict exactly what will occur.
Phony Fact 2: CN is trying to create a second major regional freight corridor which the region cannot afford.
Real Facts 2: Here’s what the truth looks like.
* The EJ&E, not CN, is actually the one creating the next major regional freight corridor. In the last 10 years EJ&E has successfully negotiated trackage rights agreements with BNSF, Canadian National and Union Pacific, without any regulatory oversight or environmental impact statements whatsoever.
* As a result traffic volumes have grown consistently on the EJ&E. Volume between West Chicago and Joliet has doubled in the past 10 years and continues to grow. In 2007 WOW Logistics opened a new 350,000 sq. ft. warehouse on the EJ&E in Aurora, one of the largest public warehouses in the region.
*Union Pacific built a new track connection with the EJ&E at West Chicago to handle the increased volume (like 135-car unit coal trains), and in 2005 EJ&E completed construction of a new 9,000-foot siding on its line just west of Barrington.
Phony Fact 3: CN won’t “show us the money” to pay for its fair share of grade-crossing mitigation costs.
Real Facts 3: Here’s what the truth looks like.
* According to Metra’s 1999 STAR Line Feasibility Study there are a total of 130 highway or road grade crossings on the EJ&E in Illinois. 21 percent of those grade crossings are for private roads, described in the study as “gravel” or “dirt”. Do these roads really need grade separations like opponents are demanding?
* According to the Federal Railroad Administration, “grade separations are generally funded by the States’ DOT and local communities. Railroads are not generally required to contribute.” But in this case CN has already volunteered to do so, just like CSXT and NS did in Cleveland, OH in 1999 when they acquired Conrail.
* In 2005, then Speaker of the United States House of Representatives Dennis Hastert convinced American and Illinois taxpayers that we needed to pay for the mess a railroad was creating. Speaker Hastert included a $7 million earmark in the Federal Surface Transportation Reauthorization bill, SAFETEA-LU, bill for a grade crossing separation project in Elburn, IL. But the railroad(s) involved in creating that “mess” were the Union Pacific and the Northeast Illinois Regional Commuter Railroad.
Phony Fact 4: This deal won’t benefit the northern Illinois economy one bit. CN intermodal trains will use Chicago “as a pass through.”
Real Facts 4: Here’s what the truth looks like.
* Chicago’s rail hub is the largest in the U.S. and the third largest intermodal container/trailer port in the world, following only Hong Kong and Singapore. Does any rational person actually believe that CN is not going to actively serve a market this size?
* Wal-Mart, the world’s largest retailer and a huge importer of Asian goods, has a 3.5 million square foot warehouse located just south of Joliet, IL. In fact the EJ&E line runs just north of this facility. Does any rational person actually believe that CN is not going to actively serve a customer of this size in this market?
* Like air traffic at O’Hare International Airport, about one-third of rail traffic moving into the Chicago area today only “changes trains” here and keeps moving through the metropolitan region. This is true of ALL the railroads operating in the Chicago region, not just Canadian National. It’s also a well-known fact that both CN and Canadian Pacific are the only Class One freight railroads with routes that actually run through Chicago rather than terminating here.
* The flow of commuter traffic in the region is already “continuously gridlocked" in dozens of suburban communities. But the railroad causing the most commuter gridlock today is not Canadian National but rather the Northeast Illinois Regional Commuter Railroad Corporation, also known as Metra.
The real danger and threat to the future of economic growth in northern Illinois does not come from the Canadian National, or any railroad for that matter. It comes from communities like Columbus, OH and Memphis, TN, which are making millions of dollars of infrastructure improvements to facilitate “the free flow of commerce”, while we set up artificial barriers to commerce and engage in silly arguments about real vs. “phony” benefits.
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