Preliminary Information

Since Oelwein’s rail heyday, employees at Transco Railway Products have witnessed a decline in rail service, culminating in the potential loss of the area’s sole remaining rail line. As Transco specializes in rehabilitating rail cars, the Union Pacific Railroad (UP) indicating the line was a potential abandonment candidate jeopardized Transco’s future in Oelwein.

To control the fate of the location, Transco initiated discussions in 1995 with UP regarding purchasing the Dewar to Oelwein rail segment. In October 2003, Transco finalized the purchase of much of the track in Oelwein, as well as the 23-mile line from Oelwein to Dewar. Transco subsequently contracted with the Iowa Northern Railway to maintain the line and provide service to Oelwein. The newly established railroad was named the D & W Railroad in remembrance of two Transco employees who lost their lives on the job.

While the probability of Oelwein returning to its former rail service levels is unlikely, a rich history is now partially preserved. Forty years ago, Oelwein was the hub of the Chicago Great Western Railway (CGW) system. At one time, six lines radiated out from Oelwein, and the yard encompassed 25 miles of track. CGW was known as an aggressive and innovative company, operating 1,500 miles of lines from Chicago to the Twin Cities, Omaha, and Kansas City, with Oelwein as the hub and headquarters for operations. CGW pioneered the experimentation and use of early distillate- and gasoline-powered rail passenger trains and was among the first railroads to handle “piggyback” trucks on rail flats. It was renowned for running impressive two-mile long freight trains with sometimes a dozen locomotives. The extensive car and locomotive shops at Oelwein once employed 1,200 people. Some of the brightest mechanical minds of that era passed through Iowa, including an early shop superintendent named Walter Chrysler, who later founded the Chrysler Corporation.

Transco took over the old Chicago Great Western repair shop on August 1, 1969. Currently, the Transco facility employs between 50 to 100 people and serves as an important business partner in the community. In 2002, Transco received a $234,000 loan from the Iowa Department of Economic Development to preserve 58 jobs and add another 20 jobs, made possible through the preservation of rail service to the community. Financial participants included the city of Oelwein, Fayette County, and Northeast Iowa Community College. This funding has facilitated the installation of 5,000 railroad ties since the change in ownership. In the first month of the new operation, two restored rail shippers began using the line. The elevators at Dewar and Dunkerton are now shipping corn by rail to processors in Cedar Rapids for the first time in nearly 20 years. The new operator is actively working to attract additional customers to the line once more.

Over the past four decades, much has changed, but with Transco’s purchase of the line, the rail tradition in Oelwein is preserved, and the jobs of Transco employees are protected.