CN and Iowa Northern Railway Officially Join their Operations

Rhea-AI Summary

CN (NYSE: CNI) and Iowa Northern Railway Company have officially merged their operations on March 1, 2025, following authorization from the U.S. Surface Transportation Board. The integration combines Iowa Northern's 175 route miles with CN's extensive 20,000-mile rail network.

The merger aims to enhance service delivery through single-line operations, connecting grain, fertilizer, renewable fuels, and industrial markets to CN's North American network. This strategic expansion represents CN's increased investment in the United States, focusing on strengthening rail service and promoting economic growth in Iowa and surrounding communities.

Positive

• Strategic expansion of network by 175 route miles
• Enhanced market access through single-line service
• New revenue opportunities in grain, fertilizer, and renewable fuels markets

Negative

• None.

Insights

Financial Analyst

CN's operational integration with Iowa Northern Railway represents a strategic expansion of the company's U.S. footprint, adding 175 route miles to CN's extensive 20,000-mile North American network. This transaction enhances CN's competitive positioning in key midwestern agricultural and industrial markets.

The creation of single-line service for grain, fertilizer, renewable fuels, and industrial markets eliminates interchange points between previously separate railways, which should translate to operational efficiencies and improved service reliability. For CN customers, this means streamlined logistics with fewer handoffs and potential cost savings.

While modest in size relative to CN's overall network, this integration has strategic significance by strengthening CN's presence in the agricultural heartland of the U.S. The combined operations will likely improve CN's ability to capture freight volume in Iowa's agricultural and biofuel sectors, creating new revenue opportunities from extended market reach.

Investors should note this transaction aligns with CN's broader strategy of making targeted investments to enhance network connectivity and capture additional freight volumes. The integration appears focused on operational synergies and market access rather than significant infrastructure expansion.

Transportation Logistics Expert

The CN-Iowa Northern operational integration creates valuable network connectivity improvements in the U.S. Midwest transportation landscape. By combining these operations, CN gains direct access to Iowa's robust agricultural production and renewable fuels infrastructure without requiring interchange with another carrier.

From a logistics perspective, the value proposition centers on the elimination of handoffs between carriers. When shipments transfer between railways, they typically experience delays at interchange points, coordination challenges, and increased transit time variability. Single-line service removes these friction points, enabling more predictable delivery schedules and potentially faster transit times.

For shippers of grain, fertilizers, and biofuels in Iowa, this integration provides seamless access to CN's extensive North American network and port facilities. This creates new routing options and potentially increases market reach for these commodities. The timing aligns well with increasing demand for efficient agricultural and renewable fuel transportation infrastructure.

The operational efficiencies gained from this integration should benefit existing customers along both networks through improved service consistency, while potentially attracting new traffic that previously may have used competing transportation modes due to the complexities of multi-carrier rail service.

MONTREAL, March 03, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) and Iowa Northern Railway Company officially joined their operations on March 1, 2025, as previously authorized by the U.S. Surface Transportation Board.

With the closing of this transaction, CN and Iowa Northern can begin integrating their two railroads to better serve customers, the Iowa economy and communities along the network.

“This additional investment in the United States underscores our dedication to delivering outstanding rail service while driving economic growth. CN customers and partners along this network will benefit from single-line service offering new options and access to new markets.”

– Tracy Robinson, President and Chief Executive Officer, CN

“Today we celebrate this important milestone, as we welcome the Iowa Northern team into our CN family of railroaders. 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.”

– Derek Taylor, Executive Vice-President and Chief Field Operating Officer

The merging of Iowa Northern’s 175 route miles with CN’s nearly 20,000-mile rail network will offer single-line service to seamlessly connect grain, fertilizer, renewable fuels, and industrial markets to CN’s North American network.

CN Forward-Looking Statements
Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:
Media	Investment Community
Ashley Michnowski	Stacy Alderson
Senior Manager	Assistant Vice-President
Media Relations	Investor Relations
(438) 596-4329 media@cn.ca	(514) 399-0052 investor.relations@cn.ca

FAQ

What is the size of the combined rail network after CN's merger with Iowa Northern Railway?

The merger combines Iowa Northern's 175 route miles with CN's nearly 20,000-mile rail network.

When did CN (CNI) complete the merger with Iowa Northern Railway?

The merger was officially completed on March 1, 2025.

What markets will benefit from CN's (CNI) merger with Iowa Northern Railway?

The merger will benefit grain, fertilizer, renewable fuels, and industrial markets through single-line service to CN's North American network.

How will the CN (CNI) merger with Iowa Northern Railway impact customer service?

Customers will benefit from single-line service offering new options and access to new markets across the combined network.