The $46.5 million intermodal hub in Cedar Rapids will cover 75 acres next to the Smith-Dows railyard.
Iowa is preparing to move forward with the development of a large intermodal hub in the eastern part of the state at Cedar Rapids.
The infrastructure project, which will consist of 75 acres next to the sprawling Smith-Dows railyard operated by the CRANDIC railroad that’s owned and operated by Alliant Energy Transportation, was awarded a $25.65 million grant under the U.S. Transportation Department’s Fostering Advancements in Shipping and Transportation for the Long-term Achievement of National Efficiencies (FASTLane) program. This program, created by the Fixing America’s Surface Transportation (FAST) Act, is being used to fund critical freight and highway projects across the country.
The FAST grant will partially cover the $46.5 million cost of the Cedar Rapids intermodal hub project. Nearly $21 million of the project will be funded by private partners, led by Alliant Energy Transportation.
The intermodal hub was identified through a state-backed, groundbreaking study of Iowa’s freight transportation network started in 2014 and released this spring. The analysis for the study was conducted by Minneapolis-based consulting firm Quetica.
Iowa is located between freight centers in Chicago, Kansas City and Minneapolis, but lacked adequate intermodal service to facilitate the transition of freight between different transport modes.
The Cedar Rapids project will construct integrated facilities for a container intermodal terminal, a rail-to-truck transload facility for bulk commodities, and a cross-dock facility for consolidating and redistributing truck loads, as well as loading and unloading containers.
“It will provide Iowa and surrounding states with access to a high-capacity, efficient, and cost-competitive facility to move goods from truck to rail and vice versa, generating significant mobility, reliability, and economic outcomes,” the office of Iowa Gov. Terry Branstad said in a statement.
“The facility directly aligns with the highest priority strategy set forth in Iowa’s recently developed State Freight Plan. The facility will optimize the freight transportation network, minimizing costs and travel time and improving supply chain efficiency. This will enhance the state’s economic development efforts, something we’ve been working on in conjunction with the Iowa Economic Development Authority,” said Iowa DOT Director Paul Trombino II.
“The next phase of the process will involve the negotiation of a grant agreement between the project partners and USDOT,” Branstad’s office said. Construction of the intermodal facility is expected to start in the spring of 2017.
For more details about Iowa’s first-of-its-kind Statewide Freight Transportation Network Optimization Strategy, read American Shipper’s June issue cover story, “A state of logistics: Iowa uses sophisticated supply chain modeling to map future freight transportation infrastructure,” pages 40-45.