The Iowa Interstate Railroad (IAIS) recently celebrated its 40th anniversary. The 580-mile Class II, owned by Railroad Development Corp. (RDC), was established in 1984 on former Chicago, Rock Island & Pacific Railroad tracks between Chicago and Omaha four years after the Rock Island shut down. The railroad was originally a partnership with Heartland Rail Corporation, which purchased the right-of-way and infrastructure for $31 million, $15 million of which was an Iowa Railway Finance Authority loan, and then leased to the IAIS. RDC acquired the IAIS from Heartland in 2003.
The IAIS is the only U.S. Class II that interchanges with all six Class I’s. In honor of its Rock Island Railroad heritage, the IAIS logo uses a shape similar to the original railroad’s logo and has also painted two of its General Electric ES44AC locomotives (513 and 516) in Rock Island-inspired paint schemes.
“It’s a great day to be a railroader in Iowa,” said IAIS and RDC Chairman Henry Posner III at the anniversary event. “It’s also a great day to be a transload last-mile logistic provider. If you look at our business model, it’s based on partnerships. There’s nothing we do alone. Recall that the Iowa Interstate was an abandoned railroad from Chicago to Omaha that everybody said should not exist. And there are some railroads that went out of the way to make sure that it never happened. Our origins are from the ashes of the Rock Island, and lots of people were involved every step of the way. The cast of characters keeps on changing, and I guess the best reflection of that is how diverse this crowd is. I see everybody ranging from grizzled veterans of the Mid-American railroad scene—and there are fewer and fewer of us—but more and more people who are of a young demographic. Our founder, Paul Banner who recently passed away at age 102, speaks well for the longevity that the Iowa Interstate spreads around.”
IAIS President Joe Parsons acknowledged Des Moines Industrial, which hosted the event at its new transload and warehousing facility, and the IAIS team who negotiated the business relationship. “I came to Iowa 11 years ago after working for a couple of railroad companies, and I can say this 100%, this is the best team I’ve ever worked with, every single day,” he said. “You continue to amaze me with your dedication to this property, your dedication to its people, and your dedication to Henry and Ida (RDC Vice President Strategic Planning Ida Posner) and the entire board.”
Des Moines Industrial President and Chief Operating Officer Gabe Claypool talked about the company’s new facility and its partnership with IAIS. “It all revolves around multiple carriers being in this one vicinity. It’s a 115,000-square-foot warehouse, about three miles of railroad track to connect to four – railroads, which is unparalleled in the railroad industry. We’re fortunate to have a very, very good partnership with Iowa Interstate, and that’s how we got Union Pacific also in here. It’s a special place for us that has driven the growth we’ve experienced for the past several years. 2022 was our first year here. We did 235 railcars. Last year we did 1,055. This year we did almost 1,100 through July—very substantial growth that we’ve been very excited to have happening.” The businesses that use the industrial park are diverse: scrap metal, fly ash, magnesium chloride, poultry, various aggregates, organic grain and Caterpillar engine parts, to name a few.
In 2006, IAIS purchased two ex-China Railways QJ 2-10-2 steam locomotives, numbered 6988 and 7081 for excursion trains and fundraising events. 6988 has a paint scheme inspired by Iowa Interstate’s ES44AC locomotives. 7081 retains its original China Railways paint with Iowa Interstate badges. Both were later donated to Central States Steam Preservation Association. Since 2018, 6988 has made excursion trips to raise money for local volunteer fire departments and promote awareness of Operation Lifesaver. As of 2022, both were out of service pending overhaul; the former is currently located at the Railroading Heritage of Midwest America in Silvis, Ill.
