A subsidiary of OmniTRAX, the Council Bluffs Railway began operations in May 1991 when it took over the 30-mile terminal switching operations of the former Council Bluffs and Ottumwa Railway, which was a subsidiary of National Railway Systems and operated that trackage from 1989 to 1991.
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In May 1991, the Council Bluffs and Ottumwa Railway's assets were sold to the Council Bluffs Railway, a subsidiary of OmniTRAX.
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It operated from August 1989 until May 1991, when it was sold to the Council Bluffs Railway, an OmniTRAX subsidiary.