3i RR Holdings and Regional Rail Holdings announced their plan to acquire Minnesota Commercial Railway, which operates 86 miles of track in the Minneapolis-St. Paul region, under a newly filed Surface Transportation Board notice. This is reported by the railway transport news portal Railway Supply.

3i RR Holdings and Regional Rail Holdings announced their plan to acquire Minnesota Commercial Railway, which operates 86 miles of track in the Minneapolis-St. Paul region, under a newly filed Surface Transportation Board notice
Photo: wikipedia

Regional Rail LLC will gain full equity ownership and direct control of Minnesota Commercial Railway, while 3i RR assumes indirect control. The deal involves no service disruptions or restrictions on third-party interchanges.

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According to the STB notice filed May 16, the transaction is expected to close on or after June 1. The short line continues to serve grain mills, warehouses, and industrial transload sites for lumber and steel.

Minnesota Commercial Railway to Remain Operational Without Service Changes

Customers can expect consistent rail operations from Minnesota Commercial Railway after the sale. The agreement maintains current service levels and operational flexibility with no new limitations on traffic exchange.

This acquisition supports Regional Rail’s long-term growth strategy across North America. The Minneapolis area location adds value to their regional logistics and freight operations.

Private Equity Firm Expands Control of Additional Short Lines

In a separate move, Star America Fund II GP LLC aims to gain controlling interest in Belpre Industrial Parkersburg Railroad, Bucyrus Industrial Railroad, and Cornhusker Railroad through Cathcart Rail Holdco.

Star America already holds a minority stake in Cathcart Rail Services. With the new deal, it secures indirect control of the three short lines, none of which interconnect or link to Class I carriers.

These acquisitions underscore the growing interest in strategic short line rail investments. As regional freight demand rises, rail infrastructure continues to attract institutional investors.

Source: www.progressiverailroading.com

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