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Iowa Interstate Railroad Ltd. (IAIS) recently began grading work near Homestead, Iowa, for a new locomotive maintenance facility and yard.

The $19 million project has been in the planning and engineering stage for about a year, but construction now is starting because the railroad completed land acquisition and obtained permits, IAIS officials said in a prepared statement.

The facility and yard will replace antiquated facilities and provide additional capacity to support growth, they said. The railroad initially plans to build two long and several shorter tracks for customers who receive grain trains and ship outbound ethanol, feed products and corn syrup.

“This site will allow us to more efficiently maintain and service our locomotives, as well as create capacity for the staging of rail cars for distribution to our customers in the Cedar Rapids area,” said IAIS President and Chief Executive Officer Dennis Miller.