The transaction includes the leases associated with these freight wagons as well as Redwood Rail’s existing customer relationships.

VTG says the wagons purchased from Redwood Rail further diversify its portfolio, adding grain, cement, sand, plastics products and lumber wagons. Assuming Redwood’s existing leases also adds two Class 1 railroads as well as a “global commodities company” to VTG’s customer base.

“Acquiring Redwood Rail’s fleet is an important strategic step that will further strengthen our position in the US market,” says VTG Rail president Mr Chris Schmalbruch. “Having purchased the Sumitomo fleet of around 2450 railcars at the end of 2011, we are very pleased to have found another investment that is an excellent fit for us and complements our portfolio.”