Canadian rail company Canadian National Rail (CN Rail) is to buy most of the Elgin, Joliet & Eastern (EJ&J) Railway from steel manufacturer US Steel Corp for $300m to add capacity and bypass congestion, a Bloomberg report says.
CN Rail plans to invest about $100m for integration, new connections and infrastructure improvements to add capacity on the Chicago area EJ&E line.
US Steel will retain a portion of the freight line, according to both companies.
The agreement is subject to approval by the US Surface Transportation Board, which if successful should be complete by mid-2008.
