MONTREAL — Canadian National Railway will acquire Iowa Northern Railway, which operates approximately 253 route-miles and 275 track-miles, primarily between Cedar Rapids and Manly, Iowa, CN announced today.
Iowa Northern was founded in 1984 on a portion of the former Chicago, Rock Island & Pacific. The Class III short line serves 19 counties in eastern Iowa, has 110 employees, 24 locomotives (plus six slugs), and 450 freight cars (all covered grain hoppers), according to the railroad’s website. It serves 20 grain elevators, two ethanol plants, and two mineral processing facilities, and handles other commodities including fertilizer, food, farm machinery, chemicals and lumber. The railroad hands more than 60,000 cars per year.
CN and Iowa Northern intersect in Cedar Falls, Iowa. Iowa Northern also interchanges with Union Pacific, Canadian Pacific, and the Cedar Rapids & Iowa City (or CRANDIC) Railway.
“We are delighted to have reached an agreement with Iowa Northern Railway,” CN CEO Tracy Robinson said in a statement. “We look forward to the opportunities our combined network will provide customers, farmers, and our partners to respond to the needs of their existing and new markets. By enabling all of us to play an even more important role in this critical supply chain and densifying our southern network, we are accelerating sustainable, profitable growth.”
The companies said the transaction represents an opportunity to support the growth of local businesses by creating single-line service to North American destinations while preserving access to existing carrier options.
“We are very pleased to have reached a deal with CN,” said Iowa Northern Chairman Daniel Sabin. “We believe CN shares IANR’s commitment to local stakeholders and that this transaction will be beneficial for customers, employees and the local Iowa economy. We are confident that, as part of CN, IANR will be able to continue to provide reliable first and last mile service to our local customers while providing them access to a much broader network and market.”
CN said the deal has closed into an independent voting trust pending regulatory review by the Surface Transportation Board. Terms were not disclosed. An STB decision is expected in 2024.
