By Justin Franz
Iowa Northern Railway could become part of Canadian National before fall if a timeline put forth by the Class I railroad is approved by the U.S. Surface Transportation Board. This week, CN filed paperwork with the federal regulator to consider the proposed takeover — which was announced back in December — as a “minor” transaction.
Iowa Northern operates on 218 miles of former Rock Island and Chicago Great Western trackage. The railroad was first established by a group of grain elevator operators in 1984 after Rock Island went bankrupt. The short line was then sold in 1994 to Iron Road Railways. The railroad operates a fleet of EMDs in an attractive maroon and gray paint scheme (inspired by another former Iron Road property, Canadian American). The railroad connects with CN at Waterloo, Iowa.
In its application, CN argues that customers will not be negatively impacted by the transaction and in fact, shippers will receive improved service from the Class I because it has more resources. The Class I has also vowed to maintain the railroad’s existing interchange points with other railroads, including CPKC Railway, Union Pacific and Cedar Rapids & Iowa City Railway.
The STB considers railroad transactions to either be “major” or “minor.” A major transaction (like the CPKC merger) can take years, but a minor can take just a matter of months. For example, in late 2019, CP announced plans to take over Central Maine & Quebec and by the middle of 2020, the transaction was done. CN is hoping for a similar timeline and has asked the board to make a decision on or before July 26, that would go into effect August 25.
The post CN Files Paperwork to Acquire Iowa Northern; Hopes to Complete Deal by Fall appeared first on Railfan & Railroad Magazine.
