IAIS Founding Chairman Paul Banner, 1922-2024

Written by Marybeth Luczak, Executive Editor
IAIS Founding Chairman Dr. Paul H. Banner (IAIS Photograph)

IAIS Founding Chairman Dr. Paul H. Banner (IAIS Photograph)

Iowa Interstate Railroad (IAIS) Founding Chairman Dr. Paul H. Banner died June 17, 2024; he was 102.

Cedar Rapids, Iowa-based IAIS operates in the Midwest region between Chicago, Peoria, and the Omaha areas, and is the only regional in the country with direct connections to all six Class I’s. The railroad was established in 1984 (scroll down for its history), and Banner served as the first Chairman; in 1986, he assumed the role of President, which he held until 1991. Prior to IAIS, Banner held leadership positions at Southern Railway and the Rock Island.

Iowa Interstate Map

“To describe Paul Banner as a visionary would be an understatement,” IAIS Chairman Henry Posner III said during the railroad’s June 28 announcement. “The idea of a fourth main line—and an abandoned one at that—between Chicago and Omaha at the dawn of deregulation was considered by many to be delusional. We are proud to stand on his shoulders, which were extremely broad.”

IAIS’s Wabtec ES44AC #519 was named for Dr. Paul H. Banner. (IAIS Photograph)

“While we send our condolences to the family of Dr. Banner, we remember his many contributions to this company and are very thankful to be able to carry on his legacy,” added IAIS President Joe Parsons. “Locomotive #519, named the ‘Paul H. Banner’ to commemorate his 100th birthday, serves as a reminder of our first Chairman as it moves freight on the line he helped to save. His enormous contribution to the restoration of the Rock Island’s core main line is his enduring legacy. IAIS expresses its sincere condolences to the Banner family and all those whose lives were touched by this industry visionary.”

IAIS provided the following history of its founding on its website:

“The year is 1984. The just recently formed Heartland Rail Corporation, whose owners consist of Maytag, Pioneer Seed, CRANDIC, Pella Rolscreen, and others, selected Iowa Interstate Railroad (‘IAIS’), a separately owned company, as its operator. Heartland, with the help of a loan from the State of Iowa and other resources, purchased 553 miles of the former Rock Island Railroad from Council Bluffs to Bureau for $31 million on October 10, 1984.

“Trackage rights to Chicago were finalized with CSXT and METRA and the railroad was able to move its first train on April 29, 1985. The train was historically significant as it represented restoration of through-service from Council Bluffs to Chicago for the first time since the Rock Island’s liquidation in 1980. These beginning years found Heartland and the Iowa Interstate experiencing difficult times, including serious discussions of bankruptcy proceedings. In 1991, the Iowa Interstate was purchased by Heartland to combine the operating entity with the owner of the track structure. Pittsburgh-based Railroad Development Corporation (‘RDC’) invested additional capital in the railroad and also obtained an option to purchase the enterprise. Heartland’s shareholders had changed over the years; several owners sold out and Archer Daniels Midland became an investor in 1995, ultimately acquiring a controlling interest. In January 2004, RDC exercised its option to purchase the company and emerged as the sole owner of the railroad.

“In February 2006, IAIS completed a transaction to lease 32 miles of track from CSXT between Utica and Henry, Illinois. This track was in dire need of maintenance, prompting IAIS to complete a rehab project to bring the speed up to 25 mph by that fall. The purchase of the CBGR railroad property from OMNITRAX in Council Bluffs was also completed in 2006. This added 93 acres of rail yards and 6 miles of main line. Parts of the property are in use for carload activities; the rest will be used for future expansion and industry. Finally, on December 31, 2006, IAIS closed on the Lincoln and Southern Railroad acquisition for track between Henry and Peoria, Illinois. Completing three transactions in one year was not a small task to accomplish but all went well without major problems.

“Harry Meislahn served as IAIS first President from 1984 until 1986 when Paul Banner assumed that duty. Fred Yocum took the helm as President in 1991 until 1998. Doug Christy became President for a short term. He was succeeded in 2000 by Penn Central and ADM veteran Jon Roy, who served until his retirement in 2002. At that time, Dennis Miller was promoted to President and CEO. In March of 2012, Mr. Miller was promoted to Vice Chairman of the Board. Jerome Lipka succeeded Miller as President and CEO after four years with the company as CFO.

“Growth generates challenges. A two-story brick building at 800 Webster Street in Iowa City was built in 1988 to provide management of operations from a trackside location. However, its small size required that some administrative personnel be housed in other locations. In November of 2004, IAIS consolidated its offices to a new facility in Cedar Rapids that is proximate to several major customers.

“Revenue load counts have grown from 48,689 in 1992 to over 100,000 in 2015, a vast difference compared to that first train with one engine and one car in 1985. While grain and grain products form the bulk of the Company’s business, carloads are increasing in coal, sand, metals and intermodal. Four ethanol and two bio-diesel plants have opened on our line since 2007. IAIS initiated piggyback service in 1985. Double-stack intermodal service commenced in 1987, with intermodal ramps in Council Bluffs and Blue Island. Using a combination of federal grant and its own funds, the Council Bluffs intermodal ramp received an upgrade in 2010. The Company also provides transloading capability at various locations along its lines.”

IAIS earlier this year broke ground on a Renewable Energy Distribution Center in Newton, Iowa.

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