GARY | A CN railroad representative told the Chamber of Commerce Friday he was optimistic about CN's planned acquisition of the EJ&E railroad.

CN is mandated by the federal Surface Transportation Board to handle local mitigation issues concerning the acquisition. The meeting with the chamber was a step in that direction.

CN's Kevin Soucie detailed the impact he said the purchase would have on the national rail network and the environment. He added the environmental impact would be positive in that it would mean thousands of diesel-fueled trucks would not be needed to haul the freight moved along the EJ&E tracks.

Chamber members and local officials wanted to hear more about the economic benefits the acquisition would offer for Gary. Topping their concerns was the state of negotiations between CN, EJ&E and Gary/Chicago International Airport for the relocation of EJ&E tracks that are in the way of the airport's planned runway expansion.

"We are working with EJ&E and the airport to work something out and I'm very confident that we will work something out that will benefit the airport and the railroad as well," Soucie said.

Gary airport director Chris Curry was complimentary of CN's role in helping to make progress in the negotiations and expressed confidence an agreement will be reached soon.

"The level of negotiations we are at now is literally just language. It's sentences. I'm optimistic we will get this signed off on in a few days," Curry said.

Soucie also discussed plans to expand the EJ&E's Kirk Yard in Gary. The Kirk Yard is a classification site, also referred to as a switch yard. Soucie said that like the EJ&E in general, the Kirk Yard is an underutilized asset. He said the yard is expected to be transformed into one of the major classification yards for CN's Midwest operations.

"Right now, the Kirk Yard is at one-third or one-quarter of its capacity and we intend to fully utilize that yard and that means we will need people to do that," Soucie said, in response to questions about job creation by CN following the acquisition.

The EJ&E runs from the South Side of Chicago to Gary and then loops west around the city to Waukegan.

CN plans to spend $100 million in upgrades and expansion of the current EJ&E assets.

Any local mitigation issues, such as building overpasses to prevent traffic congestion in towns, would be separate from that money.