Iowa Pacific's interest will be held in trust until necessary regulatory approvals are received from the Surface Transportation Board.
Cape Rail and its subsidiaries provide freight and tourist passenger service in eastern Massachusetts, and will be operating a "Polar Express" event in November and December.
Chris Podgurski will remain the president of Cape Rail. Said Podgurski, "We are very excited to be working with Iowa Pacific. Access to Iowa Pacific's marketing and equipment resources will substantially enhance Cape Rail's ability to grow both its freight and passenger services. We are also looking forward to working with CSX Transportation, the Massachusetts secretary of transportation, and MassDOT's rail unit to further develop rail transportation in the state."
Ed Ellis, president of Iowa Pacific, said, "We are pleased to add Cape Rail to our portfolio of railroads. We believe Cape Rail has significant growth potential, and are eager to assist the existing management team in realizing that potential. We are particularly pleased that Chris Podgurski is joining our management team."
Ellis also noted, "With the addition of Cape Rail, and the recent start-up of operations of our new Santa Cruz and Monterey Bay Railway in California, Iowa Pacific now has a truly coast-to-coast scope."
Including Cape Rail, Iowa Pacific now operates nine railroads providing freight and/or passenger service, located in Texas, New Mexico, Colorado, Illinois, Oregon, New York, California, and Massachusetts. The company also has recently launched it new Pullman sleeping car service between Chicago and New Orleans.