The way now appears clear for Canadian National Railway Co. to cement its deal to buy some of the biggest and most deeply established transportation companies in the Northland.

On Friday, the U.S. Surface Transportation Board approved CN's plans to purchase the assets of Great Lakes Transportation LLC for about $380 million. Included in the deal are the Duluth Missabe and Iron Range Railway Co. and the Great Lakes Fleet Inc., both based in Duluth.

As part of the transaction, CN also is poised to assume ownership of Great Lakes Transportation's holdings in the lower Great Lakes: the Bessemer and Lake Erie Railroad Co. and the Pittsburgh & Conneaut Dock Co.

Mark Hallman, a spokesman for CN, said his company expects to close on the sale by mid-May.

CN still awaits necessary approvals from the U.S. Maritime Administration and the Coast Guard that would allow for the sale of the eight-ship Great Lakes Fleet.

Because the federal Jones Act does not allow foreign-owned maritime companies to carry goods from one American port to another, Hallman said CN plans to enter into a relationship with Keystone Shipping Co. The Bala Cynwyd, Pa.-based company has been chosen by CN to serve as "selected operator" of the Great Lakes Fleet following the transaction.

Hallman said Great Lakes Fleet's offices will remain in Duluth, and the ship line's employment figures are expected to remain stable at about 200 people.

However, CN continues to look at significant cuts in the employment of workers by the DM&IR Railway, as outlined in an operating plan it submitted to the Surface Transportation Board in November.

CN proposes to close the DM&IR's car and locomotive repair shops in Proctor, laying off 76 people and transferring another 18 employees to facilities in Homewood, Ill., and Stevens Point, Wis. In all, the moves could cost Proctor and Duluth 94 jobs. To put that figure in perspective, consider that the DM&IR employed about 500 people when the planned sale was announced.

CN announced its forecasted cuts at a time when one of the DM&IR's largest customers -- EVTAC Mining Co. -- had indefinitely idled its operations in Forbes and Eveleth. Since then, the mine and taconite plant have resumed production under new ownership and with a new name: United Taconite.

The DM&IR has picked up additional business as a result of the reopening.

"The emergence of United Taconite certainly came as good news," Hallman said. "But at the moment, our initial job impact estimates still stand."

He added that CN will be able to make better assessments of its staffing needs "as we get our arms around these enterprises."