Pittsburgh Parent of Iowa Interstate Railroad Looks for New Markets By Dave DeWitte, The Gazette, Cedar Rapids, Iowa Knight Ridder/Tribune Business News Apr. 16--IOWA CITY, Iowa - The Pittsburgh company that acquired Iowa Interstate Railroad last year is looking for growth in interesting places. Railroad Development Corp. Chairman Henry Posner III told state officials this week that the regional railroad is considering everything from passenger rail shuttles to Iowa football games at Kinnick Stadium, to handling excess traffic from the three much larger rail lines with east-west lines across Iowa. Iowa City-based Iowa Interstate operates 687 miles of underutilized former Rock Island Railroad line from Omaha to Chicago. It was acquired last year by the RDC, a privately owned Pittsburgh-based railway investment and management company. At a time when consolidation has other railroads straining their capacity, Posner said that is not Iowa Interstate's problem. "We need to have more on-line customers," Posner said. "We have plenty of excess capacity." Iowa Interstate has an "open mind" regarding passenger service use such as shuttles to University of Iowa football games, even new Amtrak routes. The Rock Island Railroad once ran local shuttles to Hawkeye football games that helped fans overcome massive traffic tie-ups on football Saturdays. Iowa Interstate gets most of its business connecting local shippers with nationwide rail lines such as the Canadian National, Burlington Northern Santa Fe, and Union Pacific. Posner said the railroad is working with local economic development officials to attract new businesses seeking reasonable shipping costs. Iowa Interstate is not competing for long-haul shipments between Omaha and Chicago, Posner said. For one thing, most of Iowa Interstate's track is not rated to carry heavy loads. The maximum speed on much of its track is 25 or 30 mph. Iowa Interstate is interested in upgrading its track. "The big railroads are running out of capacity and we could be getting their overflow business," Posner said. Iowa Interstate hosts frequent international visits because of its ownership of Rail Traffic Control. The Iowa City-based subsidiary sells a software-based train control system called Track Warrant Control System used by more than 20 railroads worldwide. Iowa Interstate Executive Vice President Dennis Miller said the company has hosted visitors from Guatemala, Peru and other countries. RDC is active in the international railroad industry privatization movement, buying equity and providing management expertise to former government-owned railroads that are privatizing. RDC has invested in railroads in Peru, Estonia, Mozambique, Malawi, Argentina, and Guatemala. The creation of Iowa Interstate became possible when the Heartland Rail Corp. received a $15 million loan from the Iowa Railway Finance Authority, according to Peggy Baer, director of Iowa's Office of Railroad Transportation. The loan, which was one of the finance authority's first, is nearly paid off. -----
It would seem to me that here is the key to everything. Until this is overcome, they might experience some growth. But will be forever limited by what their infrastructure capabilities are at present. Looks like it's time for a sizeable investment. Also, what is their present situation in motive power? Primarily old, first generation rebuilds? A few early second generations? If they start increasing tonnage, reliability will be a large factor. Is there a current roster somewhere on line? Boxcab E50
Thanks! Looks adequate for present needs. But doubt it would hold up long, if any significant traffic increase. They'd need to have some fair amount of capital available for investment. Boxcab E50
