WASHINGTON — Canadian National claims it has found additional train count inconsistencies in the Canadian Pacific-Kansas City Southern merger application and related environmental filings.
The Surface Transportation Board last month put review of the CP-KCS merger on hold until discrepancies in train density data could be sorted out. CP has provided the board with clarification of the data but regulators have yet to resume the merger review.
Now CN says that CP’s deal with Amtrak to expand service between Chicago and the Twin Cities raises train counts enough to trigger the STB’s environmental review requirements on two line segments.
The first is between Chicago and Oconomowoc, Wis., which is 35 miles west of Milwaukee. The new Amtrak service would boost train counts by 6.28 per day between Chicago and Milwaukee, and by four trains per day between Milwaukee and Oconomowoc.
The second is in Minnesota between River Junction West and Newport, where CN says traffic growth would exceed the eight trains per day that would require an expanded environmental review.
CP in January agreed to permit more frequent Amtrak service on the Hiawatha route linking Chicago and Milwaukee, as well as extending the corridor to St. Paul, Minn., with the addition of a daily Chicago-Milwaukee-St. Paul train.
CN, in regulatory filings on Monday, says the merger application and environmental review filings were not updated to reflect the new, higher train counts stemming from the CP-Amtrak agreement. As a result, communities along the two line segments did not receive notice of the environmental impact statement scoping process, CN argues.
CN also flagged inconsistencies between base year trains per day data in the merger application and environmental filings for CP’s River Subdivision in Minnesota, on Union Pacific trackage rights between Beaumont and Rosenberg, Texas, and on BNSF Railway trackage in the Twin Cities area.
“Close inspection of the base year Trains Per Day Data — both those submitted as part of the CP-KCS merger application and those submitted to [the Office of Environmental Analysis] — reveal inconsistencies that have not, and likely cannot, be explained in a meaningful or logical way,” CN wrote in its filing.
“Applicants’ submissions, which are rife with inconsistent and inaccurate base year train-count data, impair STB’s ability to ensure the professional and scientific integrity of its environmental analysis,” CN contends.
CN is asking regulators to force CP to divest the KCS former Gateway Western routes linking Kansas City and St. Louis with Springfield, Ill. This would allow CN to create a new single-line route between Kansas City and Eastern Canada.
CP CEO Keith Creel this month told the North East Association of Rail Shippers that he doesn’t expect a traffic density data issue to delay the overall timeline for regulatory review of the merger.
The railroads provided one set of traffic density data for the merger application itself and another set for the STB’s environmental analysis. The railways have explained that they calculate gross ton miles differently, with CP breaking down tonnage in far more detail for each line segment, and have clarified the data in a filing with the STB.
Creel says it’s now up to the STB to ask for more information or to reinstate the merger review clock.
“It’s not surprising. These are very complex discussions when it gets to traffic density and this process. I’ll tell you this: The STB is very thorough, they want to get this right, and I understand that,” Creel said.
“We think we’ll be back on track soon,” he added.
CP expects the board to issue a decision on the merger late this year or early in 2023.
Charles: “Sacre Bleu!” Or as we say in Georgia: “Somebody’s biscuits are burning!” Cheers.
For historical perspective and who has ridden the old Milw. Rd. lines in question for more than a half century, the absurdity level in this issue reflects much that modern society is dysfunctional.
Waaaaah!
You know the apocalypse is upon us when a Class 1 railroad takes a supreme interest in the environment review process.
Creel has to be thanking everyone for all this help they getting for free from their competition to make sure the data is correct.
Why do I feel like CN is Billy the Bully in a 4th grade class trying to convince the teacher that Jimmy is not as smart as he thinks he is.
In turn where is CN’s “environmental review” for the proposed take over of the Gateway Western? Did you give notice to those folks in Jerseyville, Illinois you are going to take a dump on their long planned logistics hub if you succeed?
At first I had truble with the 6.28 trains a day, then I did the math. That’s six trains, each three miles long, plus one train, 0.84 miles long. Ey?
Charles, the correct spelling in English or French is;
“Eh”
Why it’s almost impossible to do anything in this country, even before today’s added Biden regulatory review roadblocks to any new construction. Build Back Never!
You do realize tat both CN and CP are Canadian?
They are using the U.S. ‘legal’ system. I don’t think Canada is as bad. As another example no one will be building any new interstate natural gas pipelines in the U.S. after two proposed pipelines were overwhelmed with unending legal challenges. After enough people freeze in the dark things may change but not before that.
CN =Sore loser. Like a spoiled little child, temper tantrums doesn’t always work.
Or “I think he doth protest too much” 🙂
Anyway how does one addition Chi-MSP roundtrip increase frequencies west of Milwaukee by 4 and just to Oconowmowoc? Or does the CP-Amtrak agreement allow for an extension of one Hiawatha train (roundtrip) to Oconowmowoc? (This might make sense to pilot test, particularly at Rush Hour, but then would need to extend two roundtrip train movements– one in am (going to Chicago) and one in pm (returning from Chicago)) However not very familiar with enough people commute from west of MLW to CHI.))
How do you say “Give it a rest” in Québécois French?
On dis tout comme ci: Je dis que, ansi, je dis que, je dis que c’est-ce fou, alors ansi, j’envi de trop Canadian Club, alors ey? Quel-que fois on boite trop de Canadian Club, tout alors commes les Américains. Alouette, gentil Alouette, je te plumeria. Toujours la feuille d’érable, tierre de nous aieux, he’s oot in front, he shoots, he scores! Plus de Molsons, ey? Au Canada, on achète le Molsons pour boire au petit dejeuner.
Okay, sorry I asked.
Bon Charles, one of your best posts, evah!