Iowa Northern moves corn!...

John Barnhill Feb 9, 2007

  1. John Barnhill

    John Barnhill TrainBoard Member

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    IOWA NORTHERN MOVES MILLIONS OF BUSHELS OF CORN

    CEDAR RAPIDS, IA -- The Iowa Northern Railway is the little engine that knows it can.

    In 1994 the Manly to Cedar Rapids line handled 15,000 cars and the average track speed was under 10 miles per hour. In 2006 Iowa Northern handled just under 40,000 cars with an average track speed of 30 miles per hour.

    The railroad currently moves 60 million bushels of corn to Cedar Rapids' processors, said Dan Sabin, president and owner of the Iowa Northern Railroad.

    Sabin projects the amount of corn moved to Cedar Rapids and to ethanol plants on the line will double within five years. Iowa State University has confirmed for the railroad that there are 650 million bushels of corn produced within 25 miles of any point on the Iowa Northern, he said.

    Freight rates on corn are the same today as when Sabin bought the railroad in 1994.

    "As our business has grown, we've shared additional operating savings with the elevators so they can have higher bids along our line," Sabin said. "We plan to develop incentives for more elevators not on the railroad to participate in these markets on a through put basis with on line elevators."

    Iowa Northern created another opportunity when it took over a line between Waterloo and Oelwein in 2004.

    "That line had not shipped a car load of corn for 20 years," Sabin said. "Now we generate 4,500 loads between Dewar, Dunkerton and Oelwein, and we have off line elevators looking at creating truck-to-rail facilities."

    As the ethanol industry has grown, the railroad has grown, shipping corn to processors and sending finished products on to be distributed throughout the country on Class One railroads.

    The Iowa Northern is a family affair with several generations of Sabin's family working in the business. His family has roots with the Rock Island out of Manly where his father was a locomotive engineer and he and his siblings got their start with the railroad. Sabin's sons, his brother, a brother-in-law and several nephews work for the Iowa Northern today.

    At a recent meeting in Northwood, Mark Sabin, Dan's brother, said the family saw the railroad deteriorate and now they're bringing it back.

    Iowa Northern owns the Hawkeye Express, the train that shuttles Hawkeye football fans to Kinnick Stadium in Iowa City.

    The train is powered by a passenger locomotive and has six bi-level commuter cars that each hold 180 people.

    Sabin intends to use the Hawkeye Express for grain customers and communities along the line for public benefit such as fundraisers or other events.

    "We want to be a part of every community in a very positive way," Sabin said. - Jean Caspers-Simmet, AgriNews
     

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