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Iowa Interstate purchase provides Railroad Development Corp. sole ownership


After serving as a partial owner of Iowa Interstate Railroad Ltd. (IAIS) for more than 12 years, Railroad Development Corp. (RDC) currently owns the 552-mile regional lock, stock and barrel.

RDC recently purchased IAIS — now a wholly owned RDC subsidiary — and the assets of former partner Heartland Rail Corp. Since 1991, RDC and Heartland Rail jointly owned the regional, with IAIS operating on Bureau, Ill.-to-Council Bluffs, Iowa, track owned by Heartland Rail.

In 1984, RDC, a group of shippers and the state of Iowa helped form Heartland Rail to purchase the former Rock Island Railroad's mainline; at the same time, the partners formed IAIS to operate the line.

"The IAIS management team has done an outstanding job over the years in bringing the railroad from a startup operation to the solid company it is today," said RDC President Robert Pietrandrea in a prepared statement. "Under RDC's ownership, this same team will continue to guide the railroad."

A privately held railway management and investment company, RDC is part of several joint ventures that own and operate railroads in the United States, Argentina, Guatemala, Peru, Estonia and Malawi.

Contact Progressive Railroading editorial staff.

More News from 1/6/2004