February 24, 2025|Short Lines & Regionals

Railway Age Announces 2025 Short Line, Regional Railroads of the Year

Railway Age’s 2025 Short Line Railroad of the Year is Rochester & Erie Railway LLC (RER). (Eric Thurlow Photograph)

Railway Age proudly recognizes Rochester & Erie Railway LLC (RER) and Railroad Development Corporation’s Iowa Interstate Railroad LLC (IAIS) as our 2025 Short Line and Regional Railroads of the Year, respectively. Earning Short Line Honorable Mention are Central Montana Rail Inc. (CMR), Genesee & Wyoming’s Columbus & Ohio River Rail Road (CUOH), Regional Rail LLC’s Great Sandhills Railway (GSR), and R.J. Corman Railroad Company West Virginia Line (RJCV).

The six small railroads will be presented with awards on April 7 at the American Short Line and Regional Railroad Association’s (ASLRRA) 2025 Conference & Exhibition in Denver, Colo.

“From ingenuity in dealing with the unexpected, safety achievements, and community initiatives to complete turnarounds, our diverse group of Honorees and Honorable Mentions represent the best in the industry,” Railway Age Executive Editor Marybeth Luczak said. “All of us at Railway Age congratulate them on their outstanding achievements and acknowledge their partners—customers, Class I’s, government officials, the public, and their families—who played roles in their success. A special thanks to the 29 strong finalists who were part of our program this year. It is Railway Age’s privilege to pay tribute to all these agile entrepreneurs.”

RER, the Short Line Railroad of the Year; IAIS, the Regional Railroad of the Year; and CMR, CUOH, GSR, and RJCC, the Short Line Honorable Mentions, will be featured in Railway Age’s March 2025 issue. The railroads and their partners share their stories below.

SHORT LINE OF THE YEAR

***RER: Loading a ballast train for next day’s work. (Eric Thurlow Photograph)***

Rochester & Erie Railway LLC’s (RER) motto is “Fanatical Customer Service with a Safety Focus,” and it shows. In just under two years of operation, the railroad’s team has not only rebuilt infrastructure to address years of deferred maintenance, but also expanded the customer base, providing value to local communities and promoting economic growth—exemplifying short line railroading’s grassroots spirit.

RER was established in March 2023 and awarded Surface Transportation Board (STB) approval to operate on April 21, 2023. It is owned by Jason Grube and the Operations team: James Reiner (Chief Operating Officer), Corey Tumpane (Chief Engineer Track and Structures), and Eric Thurlow (Chief Commercial Officer). The railroad runs an approximately 13-mile stretch of the former Nickel Plate and Erie connecting Rochester, Ind., and Argos, Ind., which Grube purchased in 2021. The team is committed to the success of the short line, offering rail transportation, transloading, industrial development and railcar storage services. Tumpane, based in Chicago; Reiner, based in Fulton, Mo.; and Thurlow, based in Toledo, Ohio, work on-site each weekday and only return to their families on weekends.

During the transition between the previous operator’s contract end-date and RER’s approved STB start-date, customer Rochester Iron and Metal, Grube’s family-owned business, faced a critical challenge: 20 railcars on-site with no means to load them. In response, RER obtained a track mobile and provided in-plant switching services. This effort culminated in the successful loading and staging of railcars for RER’s official launch. Concurrently, the RER Operations team prioritized immediate track repairs, acquiring a tie crane, scarifier, and ballast regulator, and renting a tamper. RER had to immediately install more than 120 ties, tamp the track, and replace broken joint bars to ensure safety.

In its initial eight months, RER secured an Industrial Rail Service Grant from the state of Indiana, alongside a grade crossing grant, as part of its comprehensive five-year plan aimed at improving rail infrastructure and stimulating economic growth. The goal: to meet Class II track standards and bring on new customers. By the end of 2023, RER had installed 5,000-plus ties, laid ballast, surfaced track, and re-decked a bridge, bringing seven miles of the line up to Class I standards; in 2024, it started installing another 2,000 ties.

RER’s carloads grew 127% from 2022 (302 carloads) to 2023 (687 carloads) and 38% from 2023 to 2024 (954 carloads)—all achieved without incident or injury. This impressive growth has enabled customers to pursue new business opportunities that were once out of reach. Additionally, RER’s focus on customer satisfaction and strategic marketing has successfully attracted new customer Transload Advantage, LLC, which will operate an RER-constructed transload distribution facility, which spans seven acres and is capable of handling more than 100 railcars across all commodities and railcar types. This facility is projected to produce an additional 300-500 carloads annually and up to two new local job positions by fourth-quarter 2025. The RER team has also established relationships with the city of Rochester and the Fulton County Economic Development Corporation. Currently, RER is collaborating with the city to provide rail access to an industrial park located just a few thousand feet from its tracks.

“One of RER’s greatest strengths is its ability to consistently deliver reliable service,” says Chris Guzman, Rail Logistics Manager for customer Reagent Chemical & Research, LLC. “Whether it’s meeting tight schedules or handling day-to-day operations, they approach every task with professionalism and attention to detail. This dependability allows us to plan with confidence, knowing that we can count on their support to keep our supply chain running smoothly. In our experience, RER has been exceptionally accommodating. They have shown a willingness to adapt to changing circumstances, whether it involves adjusting schedules, responding to unexpected requests, or finding solutions to our operational challenges … Communication is a key component of any successful partnership, and RER excels in this area. They keep us informed every step of the way, providing updates and addressing any questions or concerns promptly. This open and transparent communication has been critical in avoiding misunderstandings and ensuring smooth coordination between teams. Our partnership with RER is rooted in mutual respect and collaboration … Rochester & Erie Railway has become a valued partner in our operations.”

“The enthusiasm of the RER team is second to none,” adds Brady Peters, Division Engineer for OmniTRAX. “I encountered the railroaders as I live in northern Indiana, and we have crossed paths several times. There is a lot to be said for preservation of a short line road, and the RER has shown resilience in procuring track machines and materials, investing capital, and providing expanded services to line side customers. I have watched the property go from disrepair to vibrant daily operations. The pride these gentlemen show for their investment and hard work is a testament to what short lines do. They have delivered on bridge and track work, as well as working to build a transload yard in an otherwise dead section of Rochester, Ind. … The operating team of the RER has not only grown the railroad but, most importantly, has done so safely and with expedience on executing repairs and placing capital into their railroad.”

The RER team thanks the Indiana Department of Transportation Rail division, Federal Railroad Administration, city of Rochester, Fulton County, Norfolk Southern, and, most importantly, their families for their support.

REGIONAL OF THE YEAR

***IAIS 519 brings its steam engine and business cars to Des Moines, Iowa, to celebrate the regional railroad’s 40th anniversary. (Robert Thompson Photograph, Courtesy of IAIS)***

Iowa Interstate Railroad LLC’s (IAIS) mission is to “satisfy customers by providing safe, quality transportation services, in a way that enables customers and the company to succeed.” 2024 marked its 40th anniversary.

The regional’s story started in 1984 with the newly formed Heartland Rail Corporation. The owners—customers willing to put skin in the game, including Maytag, Pioneer Seed, CRANDIC, and Pella Rolscreen—purchased 553 miles of the former Rock Island Railroad that ran from Council Bluffs, Iowa, to Bureau, Ill., for $31 million, and selected IAIS as operator. Trackage rights were finalized with CSX Transportation and Metra, and IAIS moved its first train to Chicago on April 29, 1985. This represented the first through-service from Council Bluffs to Chicago since the Rock Island’s liquidation in 1980.

Following an abortive sale in 1989 to Chicago West Pullman, in 1991, IAIS was purchased by Heartland and Pittsburgh, Pa.-based Railroad Development Corporation (RDC) which agreed to invest additional capital in the railroad and obtained an option to purchase the operation. In 2004, RDC—formed in 1987 by Robert A. Pietrandrea and Henry Posner III—purchased the company and became the sole owner of the railroad.

In 2006, IAIS began an initiative to upgrade its franchise. It leased 32 miles of track from CSXT between Utica and Henry, Ill., on which it had trackage rights. The regional rehabbed the track and brought speeds up to 25 mph. It purchased OmniTRAX’s Council Bluffs Railway property, including 93 acres of rail yards and six miles of main line, adding capacity. Additionally, it bought the Lincoln & Southern Railroad between Henry and Peoria, Ill., which it had previously leased. Today, the 592-mile regional interchanges with all six Class I railroads and is proposed as a future passenger route from Chicago to Moline, Ill.

Revenue load counts have grown from 48,689 in 1992 to 159,000 in 2024—a vast difference compared to the first train in 1985 with one locomotive and one car. While grain and grain products form the bulk of IAIS business, carloads are increasing in coal (yes, coal), sand, metals and intermodal. IAIS initiated piggyback service in 1985, and double-stack intermodal service commenced in 1987; the railroad now has intermodal ramps at Council Bluffs and Blue Island. Four ethanol and two bio-diesel plants have opened on the line since 2007, along with many more new customers. This growth is consistent with IAIS’s self-description as a Linear Industrial Park. As a result of its efforts, IAIS earned the “Short Line Growth Award” for the southern region at Canadian Pacific Kansas City’s 2024 Business Development Conference in Kansas City.

IAIS continues to invest in its footprint. It has purchased property to expand transload options on its main line at Pietrandrea Yard in Carbon Cliff, Ill., and Iowa City, Iowa, and hosted a groundbreaking for the 120-acre Newton Rail Park/Renewable Energy Logistics Center, a hub to support the wind energy industry.

To support its customers, IAIS relies on a fleet of 20 ES44AC locomotives, all equipped with PTC (Positive Train Control) and Wabtec’s Trip Optimizer. The railroad is proud to be the first Class II purchaser of new locomotives, beginning with its first GEVO delivery in 2008. In 2024, it upgraded Trip Optimizer with advanced features and invested in Expert on Alert to help determine the root cause of failures in transit and to proactively manage necessary maintenance and repair. Other units in its fleet include 16 GP-38-2s (four equipped with PTC and all with Auxiliary Power Units), four SD-38-2s, two slugs, and one GP-38AC.

As for its infrastructure, the entire railroad now meets the 286K GRL standard. Since 2005, the railroad has installed 114 miles of CWR and 1,091,00 ties. A comprehensive bridge analysis program was completed in 2013, which forms the basis of rehabilitating the structures on a priority basis; 30 of 320 bridges have since been replaced. IAIS received a 2024 a Federal Railroad Administration (FRA) CRISI grant to replace another four bridges.

IAIS’s continued evolution and innovation is further illustrated in the 2023 relocation of its headquarters from a one-story office building to a five-floor, 27,000 square-foot leased space in downtown Cedar Rapids. Headquarters now houses the dispatching center and other administrative departments, including accounting, human resources, and sales and marketing. Most importantly, it is home to the regional railroad’s safety and training group and features a locomotive simulator lab and virtual conductor simulator training. Now, employees attend initial and annual training at headquarters, fostering connections between field and office staff.

None of this physical investment is possible, however, absent a commitment to safety. Safety is IAIS’s culture. The regional not only actively participates in RailPulse and has begun installing telemetry devices on designated railcar fleets to share real-time location, health, and condition information, but also spends thousands of hours per year training and reinforcing safe operating practices to ensure that all employees go home intact. It also maintains a comprehensive wayside detector network across the entire system, which includes Hotbox detectors, Hot Wheel detectors, Dragging Equipment detectors, and one WILD (Wheel Impact Load Detector).

IAIS’s safety efforts are not just internal. IAIS dedicates resources to local first responders. Four to five times per year, IAIS conducts first responder training, which will now feature a hazmat training tank car that the railroad acquired in 2025. Annually, IAIS hosts passenger excursion fundraising events to benefit volunteer fire departments and emergency response team services.

The American Short Line and Regional Railroad Association has recognized IAIS with 12 Jake Safety Awards between 1997–2023; this award recognizes performance that exceeds the Class II and III industry average injury frequency rate as reported by the FRA during the prior year.

In 2020, IAIS entered its second generation of family ownership with Ida Posner becoming a shareholder. And consistent with RDC’s business model based on partnerships, IAIS welcomed iCON Infrastructure as a shareholder. This has brought in additional skills and best practices in the key areas of safety, finance, and marketing.

Many of IAIS’s 250 employees have watched the railroad transition from the remains of the Rock Island to the competitive service that it is today.

IAIS Chairman Henry Posner III commented, “We have earned the respect of the rail community primarily due to our safety culture and how we have translated it to results. But also respected is the IAIS story—from an abandoned main line that ‘everyone knew’ had no future to a railroad that Fred Frailey has described as ‘A Class-II that looks like a Class-I.’”

IAIS President Joe Parsons concluded, “The entire IAIS family is honored to be selected as the 2025 Regional of the Year. As we celebrate this achievement by reflecting on our rich history, we also look forward to continued success in safety, customer growth, and community involvement along our system.”

SHORT LINE HONORABLE MENTIONS

Much of the 84.2 mile-CMR, which runs from Moccasin to Geraldine, Mont., was originally built by the Chicago, Milwaukee, St. Paul and Pacific Railroad, with its southern-most portion constructed by the Great Northern Railway. This co-op-owned short line has overcome both flooding and fire in recent years and exemplifies how a small operation comprising seven employees can have a positive economic impact on a broad service area.

In May and June 2011, CMR was knocked out of commission by the “100-year flood.” Two of the four major trestle bridges constructed before World War I had to be re-aligned. With the aid of grant funding, employees and contractors led by General Manager Carla Allen accomplished the work.

Fast forward to May 2016; once the bridges were repaired, inspected and returned to service, CMR received its first empty crude-by-rail unit train for temporary storage from one of the largest oil refiners in the country. That business continues to this day, and CMR now supports three of the four Montana refineries with car storage, including asphalt, liquefied petroleum gas, sustainable aviation fuel, vegetable oil, and other commodities, and it receives carloads of steel, chemicals, and fertilizer to support local manufacturing, road construction projects, and the agricultural industry. All this is accomplished by single, alternating day service by BNSF, which interchanges with CMR at Moccasin. CMR also supports BNSF field operations by manning shuttle trains loaded at grain elevators along the Class I’s main line.

CMR again endured adversity in December 2021, when Denton, Mont., and the surrounding area was ravaged by a fast-moving, wind-swept grass fire that burned dozens of homes, grain elevators, railroad bridges and CMR’s yard. While working days, weeks and months after the fire to restore rail operations, CMR employees assisted their fellow citizens in the clean-up and rebuilding of Denton.

Since 2019, to support customers, CMR has constructed four new 7,000-foot sidings from the Moccasin/BNSF interchange to one of its four trestle bridges. This additional capacity has helped boost resiliency by eliminating the threat of another flood event impacting operations.

In 2024, CMR handled approximately 5,600 railcars (loaded and empty).

Fun fact: The CMR’s rural location was used to film the train scenes in the 1996 movie “Broken Arrow” starring John Travolta and Christian Slater.

Cobbled together by Ohio Central Railroad System founder Jerry Joe Jacobson starting in 1985, the former Conrail, CSX, and Norfolk Southern lines that now comprise Genesee & Wyoming’s CUOH serve customers along 243 miles in Ohio. The railroad has grown from supporting several hundred annual carloads to nearly 100,000, while achieving a 10% volume and 11% revenue increase from 2023-2024. Adaptability has been key.

Earning the trust of a handful of former Class I customers came first. The railroad then fought in the late 1990s to build a local coal business around a major power plant that had previously relied on trucks. Around the same time came the rise of Utica Shale in Ohio and Pennsylvania—which has driven significant energy production over the past decade—and the almost simultaneous decline of coal. From 2016-2020, natural gas liquids made up roughly a quarter of CUOH’s commodity base, and by 2020 coal plummeted to less than 1% of the railroad’s traffic. Meanwhile, waste traffic from two on-line Ohio landfills had been building in the background since the early 2000s and came to eclipse the still-steady shale traffic. By 2022, municipal and construction waste and other landfill traffic had become as important to CUOH as coal had been in the past. In 2024, waste accounted for 56% of CUOH’s traffic base, more than doubling the commodity carloads it hauled just a half-decade ago.

Despite a constantly changing energy landscape, CUOH has delivered. Comments Chris Hanlon, Transportation Manager-Northeast for Williams Energy–Utica East Ohio: “From the early days of a few hundred shipments to today where we safely ship over 17,000 carloads of hydrocarbon-based products annually, the CUOH has consistently provided a safe, reliable, high-value service. Their commitment to service excellence has afforded our customers the opportunity to reliably move clean, low-cost natural gas liquids out of the Marcellus & Utica basin. That dedication to serving the customer has translated to overall network growth along their line, including capacity increases and added job opportunities.”

To ensure that CUOH remains safe, efficient, and competitive, the railroad has invested more than $37 million in capital over the past four years—30% in 2024 alone. This includes an expansion of CUOH’s main Newark yard; a new connection between the CUOH main line and North Piney Branch to reach the Apex landfill in Amsterdam; and major investment in sidings, as well as track rehabilitation, to serve the Utica East Ohio fractionation plant at Scio.

COUH is committed to safety and community partnerships. In 2024, it was “injury-free”—a testament to its 100 employees’ pledge to safely complete every task on every shift. Additionally, CUOH’s General Manager serves on the Ohio board of Operation Lifesaver, and the railroad maintains a strong relationship with Ohio Railroad Development Commission, from which it leases the Panhandle Subdivision, stretching from Columbus to Mingo Junction. CUOH has worked with the state on rail yard and main line investments, and on projects such as highway traffic flow improvements and the installation of defect detectors over a large portion of the network.

With an eye to environmental stewardship, CUOH upgraded most of its SD40-variant fleet with more fuel-efficient SD60 models in 2024 and teamed with the Newark and Columbus communities to clean up dilapidated properties in an aim to reduce crime and provide better conditions for residents.

What’s next? CUOH is gearing up for a resurgence of Utica Shale. Frac sand for drilling has come first with new and under-construction facilities expected to generate more than 10,000 new carloads. Outbound liquefied petroleum gas and oil will likely follow.

Another other new development to hit CUOH’s territory is the construction of Intel’s $20 billion complex in northeast Columbus. In response, CUOH is working with customers to expand or develop multiple new terminals to handle construction materials for the area’s anticipated population growth. One such customer is The Zemba Companies, which has two construction material operations along CUOH and an additional site under development. “The greatest attribute of CUOH is its people,” says Troy Hindel, Zemba’s Senior Administrator. “They are very caring and safety-focused with tons of grit and respect. We have great collaboration on shipments, maintenance of way, real estate and communication.”

GSR is a 128-mile short line in Southwestern Saskatchewan, Canada, that hauls agricultural, energy, and heavy industrial products, and provides freight rail opportunities for 13 rural communities. Established in 2009, it offers railcar storage, Association of American Railroads-certified car repair, switching, transloading, and locomotive and track maintenance services.

GSR prioritizes safety, and the management team supports the Canadian Safety Train Express, gives safety and regulatory presentations to the Western Canadian Short Line Railway Association, and participates on Transport Canada’s Advisory Committee on Railway Safety.

In calendar-year 2024, GSR handled record traffic volumes with zero injuries, celebrated its past, and made significant investments for the future:

The railroad moved 26,896 railcars in and out of its interchange with Canadian Pacific Kansas City in Swift Current, Saskatchewan. This was not only a record for GSR, but also one of the highest annual traffic volumes ever achieved by a short line on the Canadian prairies. GSR’s dedication to business development and customer service has resulted in a near 63% increase in car movements since 2020 with 247,222,365 gross ton miles and 104,683,578 revenue ton miles logged in 2024.
2024 marked GSR’s 15th anniversary of operations and owner Regional Rail LLC held a celebration in downtown Leader. The railroad also acquired two SD38-3s: GSR 2009 and GSR 2022, both outfitted in Saskatchewan-themed green and yellow livery.
GSR crews completed significant infrastructure and capital projects: 8,857 ties were installed along the line as part of the annual capital tie program, and a new locomotive shop in Leader was equipped was a poured concrete floor and inspection pit.
GSR applied for and was awarded three government grants. Transport Canada’s Railway Climate Change Adaptation Program provided $365,131 to replace a soft bank near Lemsford with geo fabric to stabilize and improve roadbed drainage along portions of track, and its Railway Safety Improvement Program–Climate Change and Adaptation Grant Program funded a $1,554,000 project to excavate, engineer, and rebuild 3,300 feet of track to boost resilience. The province of Saskatchewan’s Shortline Railway Improvement Program reimbursed $43,089 of eligible maintenance and upgrade activities.

As a participant in a Prairies Economic Development Canada marketing program to drive business in Central Canada, GSR is now exploring new digital marketing strategies to promote transloading and industrial development sites along the line and to reach customers who are new to the short line industry.

R.J. Corman Railroad Company West Virginia Line (RJCV) is a two-time Railway Age award honoree; it was named Short line of the Year in 2007. Situated in the heart of Appalachia, it has revitalized a region with a rich history of railroading and coal mining.

Its strong relationship with Alpha Metallurgical Resources has been a cornerstone of its success, demonstrating both growth and operational efficiency. Alpha, a Tennessee-based mining company with operations in Virginia and West Virginia, supplies metallurgical products to the steel industry worldwide. With Alpha, RJCV achieved a record 19,547 carloads shipped in 2024. This is up 9.62% from 2023 (17,832), which was an 18.49% gain over 2022 (15,049). The 2024 total is double the number of carloads since 2005, when R.J. Corman acquired the line.

The proximity of the Pax, W.Va., loadout to Dominion Terminal has also played a role in RJCV’s success. Continued improvements to increase the flow of inbound trucked coal have enabled RJCV to handle more loads. Trains have grown from 100 to 105 to 110 cars each over the past few years.

The railroad is committed to making targeted investments in infrastructure and operations. RJCV invested $380,000 on a siding expansion at Mount Hope and $280,000 at two Pax Branch crossings in 2024, and allocated a total of $2,700,000 to capital programs, including ties and rail improvements, over the past several years. Introducing two SD70Ms has been crucial to supporting the operation of longer trains and adapting to changes in service design to foster growth. They have helped to reduce the number of locomotives in operation, thereby lowering fuel consumption and maintenance costs. Also, the addition of another team member and the creation of two crews for round-the-clock coverage, have created jobs and enhanced service reliability.

RJCV’s ability to adjust and provide tailored solutions to meet Alpha’s growing needs has been instrumental in developing a mutually beneficial partnership. By working closely with CSX, RJCV has boosted the unit train size that can be handled at the customer’s site. This collaboration has reduced moves and travel time and improved overall service reliability and efficiency.

ABOUT RAILWAY AGE

In business since its establishment in Chicago in 1856, Railway Age is the transportation industry’s longest-running trade publication, covering railway technology, operations, strategic planning, marketing, equipment finance, and other topics such as legislative, regulatory and labor/management developments. What began as a weekly in the mid-19th century is, in the 21st century, an information resource incorporating digital and print publishing of a monthly magazine; a website; daily and weekly e-newsletters (Rail Group News, Innovations); webinars; social media (Twitter, Facebook and LinkedIn); Rail Group On Air podcasts; industry conferences; and custom publishing services.