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CN Buys Midwest Rail Line
Canadian National Railway Co. has agreed to buy most of the Elgin, Joliet & Eastern Railway Co. from U.S. Steel Corp. for $300 million to add capacity and bypass Chicago-area congestion, Bloomberg reported.
CN, Canada鈥檚 largest freight railway, plans to invest about $100 million for integration, new connections and infrastructure improvements to add capacity on the EJ&E line, the company said.
U.S. Steel will retain a portion of the freight line supporting its steel works in Gary, Ind., and rename it the Gary Railway, the companies said in a joint statement.
The deal lets the Montreal-based CN avoid tie-ups on Chicago鈥檚 rail network by using EJ&E lines on the city鈥檚 outskirts, while also giving CN access to EJ&E customers, Bloomberg reported.
The Chicago area has been a source of congestion, Bloomberg reported, citing an industry analyst.