Geneva and six other municipalities along the Union Pacific West Line are forming an alliance so that they can jointly represent their interests as Union Pacific seeks to merge with Norfolk Southern.
The potential rail merger aims to create a coast-to-coast railroad to carry nearly half of all U.S. rail freight, according to reports.
Union Pacific has said the $85 billion merger would serve the public interest and secure federal approval by unclogging Chicago, a notorious bottleneck. Critics have cited the possibility that the combined railroad would drive up shipping costs and hinder America’s global competitiveness, and concerns about things like noise, traffic tie-ups and environmental damage in neighborhoods located around tracks and terminals where the railroad may look to expand.
Union Pacific has to file a merger application with the federal Surface Transportation Board that will run into the thousands of pages. That will trigger an 18-month STB evaluation and, potentially, negotiations between Union Pacific and affected communities and industries.
The STB could reject the merger or place limits on things like route changes, price increases and how many trains the combined railroad could run and how long each train would be.
On Jan. 16, the STB ordered the railroad to revise its application, saying it lacked key information. This could delay the board’s final decision until the second half of 2027, according to reports.
Along with a number of other suburban municipalities, Geneva sits along Union Pacific’s West Line. In addition to freight, the line serves the Metra route that connects Geneva with Chicago.
Included in the planned Western Chicagoland Merger Oversight Alliance are Berkeley, Elmhurst, Lombard, Glen Ellyn, Wheaton, Winfield and Geneva, city documents show. Winfield is slated to serve as the lead agency.
At Geneva’s City Council meeting on Jan. 20 — at which the council OK’d Geneva participating in the group — City Administrator Alex Voigt explained that the purpose of it is to “protect all of (the) communities’ interests in the merger process.”
The alliance is securing legal representation to manage filings and review and update its members, according to a memo from the city. The anticipated costs are around $7,200 per community.
The resolution in Geneva authorizing a memorandum of understanding with the other communities cites potential benefits of the merger like “enhanced railroad efficiencies, reduced impact on America’s roadways, reduced emissions and enhanced safety,” as well as possible concerns related to service levels, safety and increased freight traffic.
The purpose of the alliance, however, is “not to attempt to stop the merger,” according to the city memo, but to “ensure (the) respective municipalities are represented in the process.”
“We believe that, by investing this resource into this coalition will guarantee us not only a seat at the table, but also ensure that our continued relationship moves forward in a positive way,” Geneva Mayor Kevin Burns told The Beacon-News.
He said it “makes no sense” to “burden one community” with reviewing the entire merger application, and said Geneva had no specific concerns regarding the merger, referring to the West Line as an “economic engine” for the area.
A spokesperson for Union Pacific said on Thursday that the railroad company “has a longstanding history of working closely with communities along (its) railroad line” and that it “look(s) forward to engaging with this group of municipalities and other key stakeholders to listen to their concerns and answer their questions,” reiterating its belief that the merger will provide “safer and more efficient service for customers, while enhancing the U.S. supply chain.”
And a spokesperson for Metra — which runs on several Union Pacific lines in the Chicago area, including the West Line that serves Geneva — said in an email that the agency “will be closely following the process and assessing potential impacts to Metra’s passenger service.”
“We have grown up alongside the railroad,” Burns said about Geneva. “We’ve had a positive symbiotic relationship with the railroad … we anticipate that to continue.”
The Chicago Tribune contributed to this article.
mmorrow@chicagotribune.com
