Iowa railroad bridge Repairs on track

The collapse of the Union Pacific railroad bridge in downtown Waterloo, Iowa, during last year's historic flood has cost the Iowa Northern Railway, the primary user of the span, millions of dollars. Farmers, grain cooperatives and ag manufacturers have also suffered economic and efficiency losses due to costly detours, according to the Waterloo-Cedar Falls Courier.

Railroad officials and
customers hope the projected Oct. 1 completion date for a new bridge, which
parallels the Sixth Street bridge, stays on track. If not, it will take longer
to move grain to processors in Cedar Rapids and transportation costs will
continue to suffocate profits.

Iowa Northern officials
say the bridge is 35 percent complete. Workers are building the deck on the
banks of the Cedar River while others work on supports.

"Let’s pray for no
more rain, for the water level to stay down so (contractors) can get the work
done," said Amy Homan, Iowa Northern marketing director. "They’re
(customers) all pretty nervous."

The company operates 163
miles of track between Manly and Cedar Rapids. It services 17 county elevators,
two ethanol plants and hauls tractors for John Deere. The bridge used to carry
at least six trains a day. Now, those same trains detour as much as 300 miles.

A train full of grain
that used to take one day to go from Manly to Cedar Rapids now takes three or
more. The railroad is losing about $1 million a month in revenue and extra expenses
like fuel, which is shared by customers.

In some cases, farmers
are losing about seven cents per bushel in extra transportation costs, Homan
said.

Iowa Northern typically
ships 180 million bushels of corn and soybeans, primarily to
Archer-Daniels-Midland and Cargill in Cedar Rapids. It also transports about
240 million gallons of ethanol and 400,000 tons of distiller’s grains annually
for Hawkeye Energy plants in Shell Rock and Fairbank.

Wil Manweiler, grain
merchandiser for the Dunkerton Co-op, has been keeping tabs on the
construction. Not only will the bridge’s completion keep grain moving, it will
put more money in producer’s pockets.

"(The closure) has
made ADM not as competitive by rail," Manweiler said.

Union Pacific is
overseeing the estimated $6-million repair project. More than half of the cost
is covered by grants. Iowa Northern will pay half of the remaining bill.

A thriving short-line
railroad is vital to the success of agriculture in Northeast Iowa, said Bruce
Rastetter, CEO of Hawkeye Energy. A 25-car train full of corn equates to about
75 trucks.

"It’s just a matter
of cost," Rastetter said. "(The bridge) saves my plants money and
makes Iowa Northern money."