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Iowa Northern Railway Co. has formed an ethanol logistics partnership with Manly Terminal L.L.C. and Hawkeye Energy Holdings.

This month, Manly Terminal plans to launch full operations at a liquid storage facility in Manly, Iowa, that can handle more than 5 million gallons of ethanol and other liquids, and features a truck-to-rail storage reload center. Ethanol produced throughout the Midwest will be trucked and railed to Manly Terminal for consolidation into unit trains.

Under the partnership, the 165-mile Iowa Northern will serve as the rail "conduit" to connect the terminal to the North American rail network. Ethanol producer Hawkeye Energy will use Manly Terminal to store ethanol and provide additional transportation options from its Iowa production plants in Iowa Falls and Fairbank, and additional facilities under construction in Menlo and Shell Rock.

"Together, we can make ethanol distribution and transportation so much easier and cost effective," said Manly Terminal President Lee Kiewiet in a prepared statement.