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Cedar American Rail Holdings Inc. recently began taking delivery of 600 new covered hoppers to accommodate growing grain traffic on subsidiaries Dakota, Minnesota & Eastern, and Iowa, Chicago & Eastern railroads.

The company will spend more than $45 million on the cars, which will be delivered by year’s end. National Steel Car Ltd. and Trinity Industries Inc. will supply 400 and 200 hoppers, respectively.

“We have seen good grain production in our South Dakota, Minnesota and Iowa service territory the past three years” said Cedar American President and Chief Executive Officer Kevin Schieffer in a prepared statement.

The railroads operate 2,500 track miles in eight upper Midwestern states and serve the Chicago, Minneapolis and Kansas City, Mo., markets.