The document provides an overview of Iowa Northern Railway (IANR). It details that IANR was formed in 1984 and operates 195 route miles in northeast Iowa. It connects to the larger North American rail system independently. IANR has experienced annual growth of 18% between 2003-2011. The company focuses on serving customers and the community by facilitating growth. It handles a variety of commodities like grain, ethanol and wind components. IANR has invested over $100 million in infrastructure upgrades and expansion projects to increase capacity.
4. Formed from liquidated Rock Island main line, on
February 22, 1984
Purchased from on-line elevators and Iowa-Electric
Power in November, 1994
IANR covers North Eastern Iowa with 195 route miles
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6. IANR is a unique short
line with multiple rail
connections providing
independent access to
North American Rail
System.
Aggressive in economic
growth and development
in market area.
Averaged 18% annual
growth between 2003 and
2011, despite recession
and two years of major
flood recovery.
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8. Run the Company like a business, not like a railroad.
Encourage customers to grow their business with great service
and fair, competitive freight rates.
Create new business.
Be the solution.
Tap the strengths of
each rail connection.
Empower employees
to do their best in safe
and creative ways.
Support the State and
Communities served.
Take some risk.
Facilitate new
industries and growth.
Be easy to do
business with.
Repeat, don’t act like a
railroad.
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11. In a normal crop year, nearly 1 billion bushels of corn is
grown along the IANR.
IANR will handle nearly 22,000 carloads of corn, soybeans
and oats in calendar year 2012 compared to 10,500 carloads
in 2001. Most of the traffic moves to Cedar Rapids,
providing high utilization of hopper cars.
If Cedar Rapids was an independent nation, it would rank third in
the world in the importation of corn, behind only Japan and
Mexico.
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12. IANR will miss about 6,000 carloads of corn in
2012 that would have moved in a normal crop
year. This will reduce IANR revenues by about
$4 million.
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13. Iowa Northern has grown from zero car
loads of ethanol related products in 2005
to 14,000 annual car loads in 2011.
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16. IANR wind component
distribution center at Manly
is the largest in North
America.
Future wind business is
contingent on extension of
tax credits for wind energy.
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19. Bryant Yard Trans-loading
•Two new reload tracks have been built adjacent to IANR’s Bryant Yard in
Waterloo to provide the ability to grow the business. Additional commodities:
powdered clay, tomato paste, magnesium chloride, lube oil, bentonite clay.
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23. Major bridges at Waterloo and Cedar Rapids
destroyed by flooding, cutting IANR into two
separate segments.
Lost traffic and additional costs of $800K per
month. Included 150-300 mile detours.
Line was segmented for 18 months.
Long term flood mitigation efforts will
continue for decades.
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27. Purchased the line from UP and started operations in
November, 2011 as a joint venture with the
community. Absorbed into base operations.
IANR expected losses for the first year of
operations—modestly profitable from the start.
More traffic handled in first month than the line
handled in the past five years.
Averaging nearly 100 loads per month in first ten
months of operation—corn and fertilizer.
The line is well suited for industrial growth.
A gateway for a new market territory for IANR.
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28. Regulators will require at least 10-20% biomass fuel for coal
burning power plants and a whole new industry is developing to
convert crop waste into all types of fuels.
Iowa Northern has approximately 12 million tons of excess crop
waste within 30 miles of the line, equivalent of 75,000+ carloads
annually.
Biomass will provide exceptional new revenue base to farmers.
Biomass products could be the next major commodity handled by
railroads.
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29. Butler Logistics Park
Manly Logistics
Park
Garner-Forest City
Logistics Park
Palo Logistics Park
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30. A major Industrial development expected to exceed 300 acres .
Site of future rail yard and locomotive shop.
Two new industries breaking ground in Q4 2012
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31. Manly Logistics Park UP Spine Line
UP connection to Manly
Yard
Manly Terminal
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32. A major development adding 162 acre park dedicated
to reducing costs to shippers in North Iowa and
Southern Minnesota
Trans loading facility for misc. commodities including
lumber, machinery, distillers grains, edible beans,
stuffing containers
Steel Distribution Center-Steel coils and plates inbound
by rail, outbound by truck to Midwestern markets
Cold storage and freezer warehouse of major size with
rail cross dock
Substantial intermodal facility for Northern Iowa-
Southern Minnesota
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34. Iowa is the largest egg producing state, as well as high volumes of
meat and poultry products, processed foods.
Iowa lacks appropriate and efficient access to intermodal,
particularly Texas, Mexico and California traffic lanes.
High fuel surcharges are hurting competitive access to Northern
Iowa-Southern Minnesota producers.
New facilities are planned to accommodate the massive volumes
of dry and refrigerated-frozen food products on Northern Iowa
and Southern Minnesota.
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35. Iowa is a small consumption state, so it has a severe imbalance of
inbound vs. outbound containers. According to US Census Bureau
Data, the 2011 ratio of non-bulk international commerce in Iowa is 1:3
inbound to outbound. This creates a severe shortage of empty
containers available to Iowa producers for loading. Empty containers
must be shipped or ―drayed‖ into Iowa to meet demand.
Minnesota’s international commerce is opposite that of Iowa. The
2011 ratio of non-bulk international commerce in Minnesota is 6:5
inbound to outbound. Taking a regional approach with consolidation
of the two states provides an almost even match of 7.2 : 7.6 inbound to
outbound.
A new, efficient intermodal terminal in North Central Iowa can draw
inbound and outbound container loads from a widespread region
including the Northern half of Iowa and Southern Third of
Minnesota.
Minnesota lacks direct intermodal service to/from Texas/Mexico and
California which can be provided through a north Iowa facility.
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37. Sand Processing Steel Distribution
Loop Track
Intermodal Facility
Trans-Load Tracks Cold Storage Warehouse & Cross Dock
Additional transload tracks, a major steel distribution center,
refrigerated-freezer cross dock and warehouse operation
planned adjacent to intermodal site, allowing consolidation,
stuffing of heavy containers.
Major truck base planned near MLP.
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51. Slugs placed in service on the North End with 24/7 operations,
slow orders and work at every station.
Expanding slug fleet from 2 to 6 units.
Payback in 10 months in fuel savings.
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52. Iowa Northern continues to upgrade its line and
provide more capacity for growth. Will have spent
over $100 million along the line by 2015.
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53. Critical to operations and
industrial development.
Relocated elevator tracks
to eliminate route conflict.
Tracks 7-12 in place.
Tracks 2-6 under
construction.
Lights added for night
crew safety and security.
New car repair facility is
open.
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56. 80
70
60
50
Total Miles
40
Slow Orders 12/10
30 Slow Orders 9/12
20
10
0
Cedar Rapids Sub Manly Sub
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57. Total investment 2008-2012 42.67 miles cwr $12.75 million.
Derailment Cost Avoidance
Since 2001, Annual Derailment Costs / Mile
CWR Caused Derailments - $0 / mile
Non-CWR Caused Derailments - $ 1,921 / mile
With 42.6 miles of CWR this equates to an estimated annual
cost avoidance of $81,834.
Fuel Savings & Speed Improvement
Based on GPS and fuel data before and after installation
of 16.5 miles of CWR in 2011 & 2012
67% increase in average speed (From 10.39 – 17.34 mph)
Saved 4.21 gal / mile (From 10.16 – 5.95 gal)
At current diesel price of $3.34 / gal this equates to an
estimated annual fuel cost savings of $437,244 for the entire
42.6 miles of CWR IANR operate two trains per day.
Other benefits to quantify-crew starts, increased track
capacity, locomotive utilization and costs, rolling stock
utilization and costs.
67. IANR Leadership
•IANR provides
momentum and direction
in logistical solutions that
cannot be matched by
larger, cumbersome
organizations.
•IANR can work closely
with connecting lines,
existing and new
customers to be
responsive to the
customer’s needs on a real
time basis.
•All Departments are
responsible for IANR’s
success.
•Field authority for
service needs.
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