CAAR | February 2024

FEBRUARY 2024 29 This company is an independent 440-track kilometre (~275 track miles) Class III short line led by the Sabin family. The IANR rails connect with Canadian National’s US rail network, Union Pacific routes, and routes used by the CPKC. Shall we assume that everyone will play nice and share the rails equally? The IANR will be transferred to an independent voting trust pending a regulatory review of the transaction by the US Surface Transportation Board; a decision is expected in 2024. The transaction was closed into an independent voting trust pending regulatory review by the US Surface Transportation Board (STB). For CN, the IANR is well-regarded as one of the country’s premier and fastest-growing independent shortline railroads. The Iowa (IA as a state abbreviation) Northern Railway serves the upper US Midwest agricultural and industrial markets, with traffic including biofuels and grain. CN called the purchase “a meaningful opportunity to support the growth of local business by creating single-line service to North American destinations while preserving access to existing carrier options.” Daniel Sabin, the Chairman of the IANR, added that “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.” Sabin continued: “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.” Tracy Robinson, President and Chief Executive Officer at CN, was more than happy to welcome IANR into her company’s fold. “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,” she explained. “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.” The financial costs and terms of the Iowa Northern Railway transaction were not disclosed. A CN rail development sites map. Image courtesy of Canadian National Railway. https://cnebusiness.geomapguide.ca/?map=RE&lang=en

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