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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION
IOWA NORTHERN RAILWAY
LA PORTE CITY, IOWA
SEPTEMBER 22, 2004
10:30 AM
Good morning. I want to thank Mr. Sabin, President of Iowa Northern Railway, for
that kind introduction.
I’m especially grateful to the residents of La Porte City for their warm welcome
and hospitality.
I am thrilled to be here at Iowa Northern’s Cedar Street crossing to share an
incredible example of how transportation moves the economy.
I came to see first-hand how this rejuvenated short line railway is sparking
hope and renewal among the farmers and the railway workers who rely on it for
their livelihood.
This railroad has been a lightning rod for new opportunities up and down the
line, from Manly to Cedar Rapids, and is breathing new life into America’s bread
basket.
Short line railroads, such as Iowa Northern, are an important and growing
component of the railroad industry and the Nation’s economy.
For example, the Iowa Northern Railway is helping move products from the fields
and factories to the market place cheaper and faster, in keeping with President
Bush’s goal of expanding the economy through transportation.
These tracks are an economic lifeline in every sense of the word. They help the
farmers send grain to the processors in Cedar Rapids, where it is turned into a
sweetener for soda.
These tracks help move John Deere tractors to farmers around the globe so that
they can feed the world.
As all of you know, the track condition here was a much different story ten
years ago.
You’ll recall that the rail was in shambles. That rundown state of the tracks
meant that trains had to travel slowly, and that wasted time and fuel.
Derailments were a constant nuisance. The poor conditions would cause the trains
to fall off the tracks several times a year, damaging precious equipment and
driving up costs.
Ultimately, it was the farmers who paid the price.
Today, however, there’s a new spirit of optimism along the Iowa Northern line.
After millions of dollars in improvements to the track and to the crossings,
operations are running more efficiently than ever.
This means that corn processors can place orders to the railway in the afternoon
and take delivery as early as that same night. Now, how’s that for just in time
delivery?
During 2002, Iowa Northern handled the equivalent of 52, 581 truck loads of
grain to Iowa processors. This movement spared Iowa’s highways, bridges, and
roads from wear and tear. The railway has doubled train service to its grain
elevators since 1994, and increased the available grain car fleet from 64 cars
to more than 300 cars.
For the farmers, this upgraded service means more money in their pockets.
Today’s rate for hauling corn from an Iowa Northern elevator is down about 20
percent from what it was in 1994. This adds up to real savings. In 2002, Iowa
Northern saved its on-line elevators and farmers almost 4 million dollars in
grain transportation costs, an average of 7.7 cents a bushel.
Businesses can look forward to brighter days ahead because of their alliance
with Iowa Northern. That alliance is important when you consider that rail
shipments of grain are on a tear right now. They are already up 34 percent this
year over 2003.
At its heart, the story of this railroad is about more than freight volumes and
efficiencies. It is about promoting family farms and a way of life that is as
much a tradition as the fertile fields here.
New opportunities in the towns that dot these tracks might literally mean the
difference between the life and death of these communities.
For example, Mells Industries of Des Moines has selected a few sites in Butler
County to build a new pulp and paper mill. It will convert corn stalks into
high-grade, environmentally-safe paper.
The plant is expected to generate 200 jobs. That’s quite a turnaround for a
county that has been steadily losing population for the past two decades.
Since news of the paper mill spread, other industries have expressed an interest
in locating along the Railway, bringing as much as 1,000 new jobs to rural Iowa.
Iowa Northern and the businesses it serves are providing the furnace for growth
along the line, and with every spark comes new promise for America’s heartland.
Ultimately, it means bringing jobs back to these communities so that families
can fill homes and schools, and shop at local stores.
What is exciting for me as the Secretary of Transportation is that I hear
success stories like this happening all across America.
In Pennsylvania, for example, General Electric has hired hundreds of workers to
keep up with orders for new locomotives. Meanwhile, a truck manufacturer in
North Carolina is adding a third shift and nearly 600 new jobs to keep up with a
huge demand for 18-wheelers.
I could go on and on, but one thing is clear -- under President Bush’s
leadership, more Americans are going back to work.
As you know, the President spoke enthusiastically about his optimism for the
future in a recent trip to Iowa. Indeed, the outlook for our economy has never
been brighter.
And, as we see here along this rejuvenated railway, transportation has never
been more important to America’s future than it is right now.
You know, there’s not a doubt in my mind that our economy will stay on track
with companies like Iowa Northern hauling the load.
It has been a real pleasure to spend the morning with all of you. Thank you so
much for having me.
Travel safely. May God bless each and every one of you, and may God continue to
bless America.
Before I answer your questions, we’re going to hear a few words from Dennis
Maas. Dennis is the general manager of the East Central Iowa Cooperative, which
has five granary facilities along the Iowa Northern Railway.
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