Ancala has created a US-based short-line rail platform and acquired Lehigh Valley Rail Management (LVRM).
The infrastructure fund manager has created Phoenix Rail and acquired LVRM, owner and operator of short-line rail and intermodal terminal infrastructure in Pennsylvania.
Financial details were not disclosed.
Phoenix Rail’s team, including CEO Alex Yeros, COO Ross Grantham, CFO Jack Sullan and chief strategy officer Jim Crawford, has a proven track record in the rail industry. Prior to acquiring Pioneer Lines, a short-line holding company with 15 railroads across the US, the team was instrumental in establishing, managing and growing OmniTRAX, a network of over 20 short-line and regional railroads in North America.
Yeros said: “We are thrilled to partner with Ancala to establish this railroad franchise. We intend to leverage our industry experience to acquire, grow and enhance the platform across the US.
“LVRM is an attractive initial investment with clear opportunities to build on customer and industry relationships, enhance services, and invest for growth. We are grateful to the owners of LVRM who entrusted us with taking their company and their legacy into its next chapter.”
Lee Mellor, partner at Ancala, said: “Short-line rail in North America is a resilient and highly fragmented market with significant opportunities to grow. Partnering with Alex and his proven management team is an exciting opportunity to deploy additional capital and build a significant rail business in the US.
“LVRM’s assets in Bethlehem and Johnstown are critical nodes on the US rail network and serve the densely populated Northeastern US with around 17% of the US population living within a day’s drive. We look forward to working with Alex and the team to grow LVRM and pursue further opportunities through Phoenix.”
To read the latest IPE Real Assets magazine click here.
