Canadian National finalizes acquisition of Iowa Northern

Joint operations took effect Saturday, CN says

CN announced plans to buy the 218-mile Iowa Northern in late 2023. (Photo: Jim Allen/FreightWaves)

MONTREAL — Canadian National Railway and Iowa Northern Railway have officially joined operations, CN said Monday.

“This additional investment in the United States underscores our dedication to delivering outstanding rail service while driving economic growth,” CN CEO Tracy Robinson said in a press release. “CN customers and partners along this network will benefit from single-line service offering new options and access to new markets.”

Said Derek Taylor, CN’s chief field operating officer, “Both CN and Iowa Northern have built their reputations on putting safety first, and by delivering innovative, sustainable and reliable transportation solutions to our customers.”

CN announced its plans to purchase the 218-mile Iowa Northern in late 2023. The move was approved by the Surface Transportation Board in January — about six months after the board’s deadline for a decision — by a 3-1 vote.  The board’s then-chairman, Robert E. Primus, cast the only opposing vote, citing concerns about decreased competition. The acquisition was effective Feb. 13 under the board decision, but CN says Iowa Northern was merged into CN this past Saturday.

Dan Sabin, Iowa Northern’s chairman, said in a statement when STB approval was announced that he was “proud of what Iowa Northern’s employees and customers have built and their important role in Iowa’s economy. I am also excited about the benefits of our combination for customers, employees, and the communities we serve.”

Iowa Northern, which primarily operates between Cedar Rapids and Manly, Iowa, was founded in 1984 on a portion of the former Chicago, Rock Island & Pacific and moves about 60,000 cars per year. At the time the transaction was announced, Iowa Northern had 110 employees, along with a fleet of 24 locomotives, six slugs and 450 railcars.

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