UNITED States short line holding company Regional Rail, based in Pennsylvania, plans to acquire all the stock of Class III railways Effingham Railroad Company (EFRR), South Point & Ohio Railroad (SPOR), and Illinois Western Railroad Company (ILW), upon its becoming a Class III railway.
All three railways are part of Agracel Rail Holdings, which is headquartered in Effingham, Illinois, while Regional Rail is backed by 3i.
Last month, Regional Rail acquired the 198km Great Sandhills Railway in Saskatchewan, Canada, and the interests in three other rail freight assets located in western Canada from G3 Canada.
“We are excited to expand into the Canadian market, where we see significant industrial growth opportunities across the railroads,” Mr Rob Collins, 3i managing partner and head of North American infrastructure, said in November. “Since our initial investment in 2019, we have believed Regional Rail offers an attractive platform for consolidation and this acquisition further strengthens that conviction.”
Regional Rail was originally formed in April 2007 and owns several short lines in eastern US states.