MIDWEST RAILROAD

    Iowa Interstate Railroad

    Iowa Interstate Railroad: Only U.S. regional railroad connecting with all six Class I carriers, moving over 10 million tons of freight annually across nearly 600 miles. Celebrating 40 years, IAIS links Midwest agriculture and industry to national and global markets with direct Chicago and Omaha access.

    Iowa Interstate Railroad

    Company Overview

    Iowa Interstate Railroad operates one of North America's most extensive freight rail networks, connecting businesses across Iowa and Illinois with safe, efficient, and environmentally responsible transportation solutions. The railroad manages nearly 600 miles of track, running from Council Bluffs, Iowa (Omaha area), to Bureau Junction, Illinois, with a branch to Peoria and trackage rights into Chicago.

    Founding history

    FOUNDING HISTORY & ORGANIZATIONAL STRUCTURE

    Founded on November 2, 1984, Iowa Interstate Railroad was established by a partnership between Heartland Rail Corporation and the Iowa Railway Finance Authority to operate former Chicago, Rock Island & Pacific Railroad lines after the Rock Island’s collapse. In 2003, Railroad Development Corporation of Pittsburgh acquired IAIS, solidifying its position as a leading regional carrier..

    HEADQUARTERS & OPERATIONAL BASES

    The company’s headquarters is located at 5900 6th Street SW, Cedar Rapids, Iowa 52404. This facility serves as the central administrative and operational command center, housing finance, human resources, marketing, dispatching, and strategic planning functions.

    Headquarters

    LEADERSHIP & EMPLOYEES

    Our People Drive Excellence

    Key Leadership

    Joe Parsons serves as President and CEO of Iowa Interstate Railroad, bringing extensive experience in railroad operations and leadership. Carrie Evans is the Chief Financial Officer, overseeing financial strategy and compliance. The executive team also includes Vice Presidents responsible for operations, marketing, and engineering, each with backgrounds in freight rail management and logistics. Chairman Henry Posner III, a recognized industry thought leader, provides strategic guidance and has been instrumental in shaping the company’s growth and culture.

    Employee Demographics

    Iowa Interstate Railroad employs approximately 250 people, with about 180 serving as skilled craftspeople, maintenance workers, and service teams. The workforce is diverse in age and background, reflecting a mix of experienced railroaders and a growing number of younger employees, with a strong emphasis on safety and operational excellence.

    FACILITIES & OPERATIONS

    Strategic Regional Operations

    Major operating facilities

    Major Operating Facilities

    Major facilities include the Blue Island intermodal terminal in Illinois, the Council Bluffs yard in Iowa, and the Peoria terminal in Illinois. Additional key locations are the Altoona stub near Des Moines, the Milan branch near Rock Island, and the Hancock Junction facility in western Iowa. The Cedar Rapids headquarters also functions as a central hub for dispatch and administration.

    Site certifications

    Site Certifications

    Iowa Interstate Railroad maintains compliance with Federal Railroad Administration safety standards and has received multiple industry awards for safety and environmental stewardship. The company holds the 2025 ASLRRA Environmental Award and was named Railway Age’s 2025 Regional Railroad of the Year, reflecting its commitment to sustainable and safe operations.

    EQUIPMENT & INFRASTRUCTURE

    Regional Equipment & Technology

    Container Types & Equipment

    The railroad handles a variety of container types, including intermodal containers, boxcars, tank cars, and specialized flatcars for oversized freight. Intermodal containers typically range from 20 to 53 feet in length, while tank cars are used for ethanol and other liquid commodities, and boxcars and flatcars accommodate bulk and dimensional loads.

    Technology Platforms

    Iowa Interstate Railroad utilizes advanced technology platforms for real-time tracking, electronic dispatch, and customer service. The company offers a digital customer portal for shipment visibility and documentation, as well as APIs for seamless integration with customer logistics systems. Automation technologies are deployed in yards and terminals to enhance efficiency and safety.

    Network Coverage & Market Position

    Geographic Scope

    The geographic scope of Iowa Interstate Railroad covers Iowa and Illinois, with trackage rights extending into Chicago, Illinois. The network spans nearly 600 route miles, with key corridors running from Council Bluffs through Des Moines, Cedar Rapids, and Bureau Junction, and a major branch line to Peoria.

    Strategic Partnerships

    Strategic partnerships include direct interchange agreements with all six Class I railroads—Union Pacific, BNSF, CSX, Norfolk Southern, Canadian National, and Canadian Pacific—enabling seamless connections to national and international markets. The company also collaborates with regional and shortline railroads to expand its service reach.

    Carrier Partners & Regional Networks

    Carrier partners
    • Carrier Collaborations
      Carrier collaborations involve interline agreements with major vessel carriers and trucking partners, supporting integrated door-to-door logistics solutions. These relationships facilitate efficient transfer of containers and bulk freight between rail, truck, and ocean shipping modes.
    • Freight Network Memberships
      Iowa Interstate Railroad is an active member of industry associations such as the American Short Line and Regional Railroad Association (ASLRRA) and participates in national freight networks and trade organizations to promote best practices and industry standards.

    FINANCIAL METRICS & STABILITY

    Regional Focus & Operational Efficiency

    Annual Revenue

    In 2024, Iowa Interstate Railroad reported a pre-tax profit of $28 million on revenues of $110 million. The company’s operating ratio improved to 72 percent, reflecting enhanced operational efficiency and cost management.

    Investments & Acquisitions

    Recent capital investments include a $15 million upgrade to the Council Bluffs terminal in 2023 and a $10 million expansion of the Blue Island intermodal facility in 2024. The company has not made major acquisitions in the past two years but continues to invest in infrastructure and technology.

    SERVICE PORTFOLIO

    Comprehensive Regional Transportation

    Core logistics services

    Core Logistics Services

    Iowa Interstate Railroad offers a range of logistics services, including full container load (FCL) and less than container load (LCL) shipments. Additional services include customs brokerage, trade compliance consulting, cargo insurance, and transloading for bulk and oversized freight. The company also provides warehousing and last-mile delivery solutions for industrial and agricultural customers.

    Digital offerings

    Digital Offerings

    Iowa Interstate Railroad has launched a new customer portal to enhance self-service capabilities and improve day-to-day activities for its clients. Additionally, the company offers an API Center to facilitate seamless integration with customer systems, supporting real-time shipment tracking and electronic documentation.

    INDUSTRY REPUTATION & NEWS

    Regional Transportation Leadership

    Recent Developments

    Iowa Interstate Railroad is actively working to enhance operational efficiency and service quality. The company has implemented automated obstacle scanners at its hubs and loading parks to improve safety and efficiency in handling intermodal containers. In 2025, IAIS celebrated its 40th anniversary and received national recognition for environmental leadership and operational excellence.

    Awards & Certifications

    Iowa Interstate Railroad’s Site Certification Program has identified optimal rail-served sites and conducts in-depth reviews to ensure readiness for development. This program aims to minimize development risks for customers and enhance supply chain efficiency. The company’s environmental and safety awards further underscore its commitment to responsible operations.

    ANALYSIS & FUTURE OUTLOOK

    Regional market position and growth strategies

    Strengths

    • • Only U
    • S. regional railroad connecting with all six Class I carriers • Nearly 600-mile network links Midwest agriculture and industry to national and global markets • Recognized for environmental leadership and operational excellence

    Challenges

    • Challenges in achieving higher profitability margins compared to competitors
    • Ongoing efforts to enhance service quality and operational efficiency

    Opportunities

    • Continued investment in infrastructure and technology to support growth
    • Expansion of services hubs and intermodal facilities to enhance service offerings

    Risks

    • Economic downturns are affecting freight volumes
    • Operational disruptions due to external factors such as labor disputes or regulatory changes