Overview

Formed in 2007, Regional Rail provides freight transportation, car storage and transloading services across the U.S. and western Canada, spanning over 875 miles of track connecting to a diversified Class 1 railroad network. 

Since 3i’s initial investment in 2019, Regional Rail has grown from three railroads in the Northeast to seventeen freight railroad operations located across North America. The company’s wholly owned subsidiary, Diamondback Signal, is the premier provider of rail-crossing installation and maintenance services to short-line and industrial customers in the U.S.

In 2023, Regional Rail transported over 65,000 carloads while serving customers across a diversified set of end-user markets including food & agriculture, chemicals, aggregates, heating, fuel blending, lumber, and metals. 

Recent developments 

• Acquired three railroads in Florida - Florida Central Railroad, Florida Midland Railroad and Florida Northern Railroad (2020) 
• Acquired Carolina Coastal Railway in North Carolina (2020) 
• Acquired three railroads across Illinois and Ohio - Effingham Railroad, Illinois Western Railroad and South Point & Ohio Railroad (2022) 
• Acquired a portfolio of railroads across Western Canada, including Great Sandhills Railway (2022) 
• Acquired Clinton Terminal Railroad in North Carolina (2023) 
• Acquired two railroads across Indiana and Ohio - Indiana Eastern Railroad and Ohio South Central Railroad (2023) 
• Acquired Cincinnati Eastern Railroad in Ohio (2024) 
• Expanded network of freight rail operations by entering into long-term contracts to provide the rail operations at SeaPort Manatee and Ports of Indiana-Burns Harbor 
• Executed on several growth projects, constructing additional trackage on company property to organically grow volumes with major customers under long-term take-or-pay agreements
• Improved safety culture and performance for the company, resulting in declining injury and derailment rates even as the platform has expanded 
• Joined the U.S. EPA's SmartWay Transport Partnership, a collaboration that provides a framework to assess environmental and energy efficiency of goods movement supply chains 

Regulatory information 
This transaction involved a recommendation of 3i Corporation.