MONTREAL, QUEBEC, CANADA — CN signed an agreement to acquire Iowa National Railway (IANR), which operates 275 track miles in Iowa.

IANR serves upper Midwest agricultural and industrial markets covering goods such as biofuels and grain.

CN said the acquisition is an opportunity to support the growth of local business by creating single-line service to North American destinations.

“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,” said Tracy Robinson, president and chief executive officer of CN. “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.”

IANR said CN shares its commitment to local stakeholders.

“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,” said Daniel Sabin, chairman at Iowa Northern Railway.

The transaction closed into an independent voting trust pending regulatory review of the transaction by the US Surface Transportation Board (STB).

The terms of this transaction were not disclosed. An STB decision regarding the transaction is expected in 2024.

IANR, based in Waterloo, Iowa, US, runs through Iowa and has three direct Class I interchanges and a short line interchange. It serves 20 grain elevators, two ethanol plants, two mineral processing facilities, and handles other commodities such as fertilizer, farm machinery, food, chemicals, lumber, and more.

It is the serving carrier to Manly Terminal, which is a liquids storage and transloading facility that serves biofuel production industries handling fuels, chemicals and co-products located in the heart of ethanol production in the United States.