USA: Infrastructure investor Ancala has launched short line rail business Phoenix Rail, with its first deal being the acquisition of Lehigh Valley Rail Management which owns short line and terminal facilities at Bethlehem and Johnstown in Pennsylvania.
Phoenix Rail is led by CEO Alex Yeros, COO Ross Grantham, CFO Jack Sullan and Chief Strategy Officer Jim Crawford.
The team was previously involved in establishing and growing the OmniTRAX railway group, and developed Pioneer Lines into a short line holding company with 15 railways before selling it to Patriot Rail in 2022.
‘We intend to leverage our industry experience to acquire, grow and enhance the platform across the United States’, Yeros said on January 28. ‘LVRM is an attractive initial investment with clear opportunities to build on customer and industry relationships, enhance services and invest for growth.’
Ancala’s investments include Scandinavian rail freight operator Hector Rail. It said it aims to work with the management team to build Phoenix Rail into a ‘best-in-class owner and operator of railroads and rail-related businesses’ by investing in infrastructure, expanding and developing customer relationships and pursuing adjacent opportunities.
‘Short line rail in North America is a resilient and highly fragmented market with significant opportunities to grow’, said Ancala partner Lee Mellor. ‘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.’
