Railway Mergers and Infrastructure Changes: Impact on Barrington

In 2007, Karen Darch initiated efforts for creating an underpass for U.S. Route 14 beneath the Canadian National railroad tracks in Barrington. At that time, she had six children and was yet to have grandchildren. Nearly two decades later, the echoes of construction indicate progress toward the half-mile, $94 million underpass finally being realized, amidst Darch’s burgeoning family of seven grandchildren. She remains uncertain about the number of grandchildren she might have when the underpass is completed by the expected timeline of next year. However, Darch is keenly aware of a newly emerging challenge: mergers in the rail industry potentially affecting her family’s future.

Rail mergers are altering the structure of North American railroads. Union Pacific, seeking an $85 billion merger with Norfolk Southern, plans to reroute trains over Canadian National’s suburban Chicago corridor. This involves diverting some trains currently passing through inner-city Chicago. The construction aims to alleviate traffic congestion caused by freight train rails, where daily interruptions occur, blocking roads.

Darch, an attorney and long-time village president, anticipates further developments, particularly the addition of a second freight track through Barrington. Canadian National is working towards double-tracking the nearby line, which could significantly boost train numbers traveling at higher speeds through the town’s center. The current traffic of 50,000 vehicles, 800 school bus trips, and 70 Metra commuter trains could see further infrastructure demands.

Darch suggests that new underpasses may be necessary, with financing needing to include contributions from businesses benefiting from railway operations. The mergers are leaving professionals like Peter Gilbertson, CEO of Anacostia Rail Holdings Co., in uncertainty. Gilbertson operates six short line railroads across major cities. While aiming to maintain competitive services, the strategic industry changes pose risks to his business.

The federal Surface Transportation Board (STB) is examining the competitive impacts of the Union Pacific merger, with significant market share implications. Union Pacific argues that their coast-to-coast service will reduce costs, but industry professionals like Rick Paterson emphasize the urgency for business growth in the face of stagnant industry volumes.

The merger process involves legal and regulatory challenges. Several state attorneys general oppose the merger, citing insufficient evidence of enhanced competition. Past experiences, such as the long delay Barrington faced in securing railway relief, underscore the stakes for communities impacted by these mergers.

Gilbertson oversees Anacostia’s operations, which grew by 3.4% last year despite larger railroads maintaining steady volumes. These short lines utilize their flexibility and personal service, with the Chicago South Shore & South Bend Railroad being one of his significant purchases. Expansion plans must contend with potential legislative constraints stemming from consolidated rail industry power.

Gilbertson also encountered challenges with dockside operations in Los Angeles and Long Beach, where he lost a longstanding contract due to competitive bidding. These ports represent major freight hubs with significant rail connections, and shifting rail strategies are altering existing business dynamics.

The Elgin, Joliet & Eastern Railway, historically less active, now holds strategic importance in freight movement, and its acquisition by Canadian National increased daily train traffic significantly. Darch initiated her advocacy when Canadian National’s acquisition of the EJ&E Railway brought unnoticed consequences for Barrington until federal support was obtained for infrastructure improvements.

As Union Pacific plans to utilize Canadian National’s Chicago-area capacity, transportation becomes increasingly essential. The rapidly shifting industry threatens existing arrangements and demands new solutions. While growth seems beneficial, it raises questions about community impacts and rail balance.