InfraRed Capital Partners has acquired a majority interest in Rail Modal Group through one of its value-add infrastructure funds. Financial terms of the transaction were not disclosed.
Rail Modal Group is an inland intermodal rail terminal and export logistics platform serving agricultural producers, processors and other businesses across the U.S. Midwest and Plains.
Founder and CEO Greg Oberting will retain an investment in the company and continue leading the business.
Rail Modal Group operates four large-scale terminals that connect regional customers with major North American rail networks and U.S. gateway ports.
The company collects containerized exports from inland producers and consolidates them onto full-length trains containing more than 100 railcars. The trains then travel directly to West Coast container ports.
Containerization helps preserve the identity and quality of agricultural products while providing producers located far from marine ports with access to international markets.
Rail Modal Group has shipped more than 1,200 unit trains since its founding in 2018. The company estimated that its rail shipments represent the equivalent of approximately 200 million truck miles.
InfraRed plans to invest in additional capacity and resilience at the company’s current terminals, expand its range of services and develop new locations.
The firm believes Rail Modal Group represents critical agricultural and logistics infrastructure in a market where more than 40% of long-distance U.S. freight moves by rail.
InfraRed manages approximately $13 billion in equity capital across core and value-add infrastructure strategies and is part of Sun Life’s SLC Management business.
KEY QUOTES:
“RMG is an established, asset-backed platform providing essential infrastructure to customers across the agricultural and logistics supply chains.”
Filip Guz, Partner and Head of Americas Investments at InfraRed Capital Partners
“InfraRed demonstrated a strong understanding of our business, our industry and the essential role that RMG plays in the North American supply chain.”
Greg Oberting, Founder and CEO of Rail Modal Group
