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XOM   104.76 (-0.09%)

Canadian National purchase of Iowa railroad will add 275 miles of track to North American network

WATERLOO, Iowa (AP) — Canadian National is buying a small railroad in Iowa to expand its network in the United States.

CN announced the agreement to buy Iowa Northern Railway Wednesday, but didn't disclose financial terms. The U.S. Surface Transportation Board must approve the transaction next year before it can be completed.

Iowa Northern has about 275 miles of track serving a mix of agricultural and industrial shippers in the state. Iowa Northern Chairman Daniel Sabin said he believes CN will maintain his railway's commitment to providing reliable service while helping connect shippers with bigger markets.

CN CEO Tracy Robinson said the deal should strengthen the Montreal-based railroad. CN is already one of North America's six biggest railroads with more than 18,000 miles of track across Canada and the United States.

“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,” Robinson said.

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