With the transaction’s closing, the 20,000-mile CN and 218-mile IANR can begin the integration process “to better serve customers, the Iowa economy and communities along the network,” CN reported March 3. Combined, the railroads will offer single-line service to “seamlessly connect grain, fertilizer, renewable fuels, and industrial markets to CN’s North American network,” according to the Class I, which on Dec. 6, 2024, signed and closed an agreement to acquire short line IANR that it interchanges with in Waterloo and Cedar Rapids, Iowa, and on Jan. 30 filed an application with the STB.
“This additional investment in the United States underscores our dedication to delivering outstanding rail service while driving economic growth,” said Tracy Robinson, President and CEO of CN and Railway Age’s 2024 Railroader of the Year. “CN customers and partners along this network will benefit from single-line service offering new options and access to new markets.”
“Today, we celebrate this important milestone, as we welcome the Iowa Northern team into our CN family of railroaders,” added Derek Taylor, Executive Vice President and Chief Field Operating Officer at CN. “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.”
Background
The STB on Jan. 14, 2025, approved, with conditions, CN’s acquisition of IANR, as well as related notices of exemption for trackage rights. There were no objections to the transaction; only certain conditions were requested. The combination was allowed to occur as early as Feb. 13, 2025. Robert Primus, the STB Chair at that time, filed the lone dissent. On Jan. 30, the STB amended the transaction’s labor protection conditions.
“In today’s decision, the majority finds that the proposed transaction has potential anticompetitive impacts, but that those impacts may be sufficiently mitigated through targeted conditions,” STB said on Jan. 14. “As a result, the Board approves the proposed acquisition with a number of conditions, including, most significantly, several specific requirements designed to keep gateways open on commercially reasonable terms in perpetuity; compliance with several reporting requirements during a three-year oversight period established by the Board; development of a scheduled local service plan; and maintenance of access to locations in current voluntary reciprocal switching tariffs.”
