Freight and freight-related revenue totaled more than $41 million for 2014. Freight carloads totaled 58,325 for the year, up 9,216 or 20% from 2013. “We had strong growth at several railroads, but particularly at our two railroads in the Permian Basin,” said Executive Vice President of Marketing Steve Gregory. “While there are headwinds for 2015 due to the steep drop in the price of oil, we have new customers coming on line in the first quarter and expect the two Permian railroads to grow modestly in 2015. January is off to a strong start.”
IPH said it “has substantial growth opportunities on other railroads and is redirecting business development efforts to non-oilfield commodities in 2015 after a string of successes with new and expanded customers.”
On the passenger side, revenue exceeded $17 million in 2014. IPH handled 398,369 passengers at its U.S. and U.K. operations. The U.S. passenger count was up 46% vs. 2013 with across-the-board increases at existing operations and a strong performance from two new holiday services operated in conjunction with WATCO short lines in Oklahoma and Wisconsin. “With the improvement in the economy and the drop in the price of gasoline, families have more disposable income, and are more inclined to include our train services in their plans,” said Vice President Passenger Sales and Marketing Angela Arias. “We expect same-store growth to continue in 2015 and we will launch additional services including at least two holiday operations in 2015.”
Total revenue for Iowa Pacific topped $80 million for the first time, thanks to the growth in freight and passenger volumes. It was our best year ever in both revenue and operating income,” said President and CEO Ed Ellis. “In spite of the challenges facing the oil market, our business is sufficiently diversified that we are expecting another record year for both freight and passenger in 2015.”