CN has announced that it has signed and closed an agreement to acquire Iowa Northern Railway (IANR), which operates approximately 275 track miles in Iowa connecting to CN’s U.S. rail network.
Iowa Northern Railway serves upper Midwest agricultural and industrial markets, covering many goods, including biofuels and grain.
The company was formed in 1984 on a section of the old Chicago, Rock Island & Pacific Railroad Company. The IANR runs diagonally through Iowa northwest to southeast from Manly to Cedar Rapids, a branch line from Waterloo to Oelwein, and a branch line from Forest City to Belmond, all within the state of Iowa.
CN is headquartered in Montreal, Canada, and also has an office in Cedar Rapids.
Representatives say the transaction represents a meaningful opportunity to support the growth of local business by creating single-line service to North American destinations, while preserving access to existing carrier options.
“We are delighted to have reached an agreement with Iowa Northern Railway,” said Tracy Robinson, president and chief executive officer at CN. “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.”
“We are very pleased to have reached a deal with CN,” added Daniel Sabin, chairman at Iowa Northern Railway. “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.”
Terms were not disclosed. The transaction is pending regulatory review by the U.S. Surface Transportation Board (STB), which is expected by 2024.
