Regional Rail to acquire 3 Midwest short-line railroads

Purchases will expand Pennsylvania-based company’s footprint in region

Regional Rail is acquiring the short-line railroads of Agracel Rail Holdings. (Photo: Jim Allen/FreightWaves)

Pennsylvania-based Regional Rail, a short-line owner and operator backed by U.K. investment firm 3i Infrastructure, plans to acquire three short-line railroads in the Midwest.

The move to acquire Agracel Rail Holdings’ three railroads — Effingham Railroad Co., South Point & Ohio Railroad and Illinois Western Railroad Co. — will expand Regional Rail’s footprint farther into the Midwest. In October, Regional Rail began freight operations at its new Burns Harbor Railroad subsidiary, which operates at the Port of Indiana-Burns Harbor. 

Regional Rail also operates in New York, New Jersey, Pennsylvania, North Carolina and Florida, and boasts assets in western Canada. The company also provides railroad crossing signal design, construction and maintenance services via its Diamondback Signal subsidiary.

“This is another great example of Regional Rail’s philosophy of partnering with strong local operators to help grow their business over the long term,” Rob Collins, 3i managing partner and head of North American infrastructure, said in a Tuesday news release. “We believe that these assets have incredible potential and look forward to continuing to support Regional Rail.”

The three midwest railroads serve customers that deal with chemicals, aggregates and lumber. 

“We are proud of the work that has gone into establishing and building these railroads over many years and believe that Regional Rail is the right partner to support the local management teams well into the future,” said Agracel CEO Dean Bingham.

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Joanna Marsh

Joanna is a Washington, DC-based writer covering the freight railroad industry. She has worked for Argus Media as a contributing reporter for Argus Rail Business and as a market reporter for Argus Coal Daily.