Canadian railway CN plans to acquire Iowa Northern Railway (IANR) a short-line railroad that operates on 275 miles of track in Iowa.
IANR, which connects with CN’s (NYSE: CNI) network and is based in Waterloo, is privately owned by the Sabin family. Acquisition costs weren’t disclosed, but the transaction is subject to the Surface Transportation Board’s regulatory approval, which could be granted in 2024.
IANR serves agricultural and industrial markets in the Upper Midwest, and customers include those transporting grain and biofuels. According to IANR’s website, the company also provides car storage and transloading services. The railway also interchanges with two other Class I railroads — Union Pacific (NYSE: UNP) and Canadian Pacific Kansas City (NYSE: CP) — and one short line, the Iowa Interstate Railroad via short line and UP subsidiary Cedar Rapids & Iowa City Railway.
“We are delighted to have reached an agreement with Iowa Northern Railway. 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,” CN President and CEO Tracy Robinson said in a Wednesday afternoon news release. “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.”
Said IANR Chairman Daniel Sabin: “We are very pleased to have reached a deal with CN. 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.”
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