Acquisitions are continuing apace within the U.S. freight rail industry, with an infrastructure investment firm acquiring SMBC Rail Services and CN taking a stake in Atlanta Canada short-line railroad.
ITE Management affiliate to acquire SMBC Rail Services
An affiliate of ITE Management, a transportation and infrastructure investment firm, plans to acquire SMBC Rail Services, a full-service rail car lessor, the companies announced Tuesday.
As part of the acquisition, SMBC Rail Services’ rail cars and other assets will be transferred to ITE affiliate American Industrial Transport (AITX), a rail car services provider of fleet management, repair services and rail car data.
The acquisition, which is subject to closing conditions and regulatory approval, comes as some industry observers say that shippers have been considering full-service options for leasing, repair, fleet management and rail car data amid growing complexity in the supply chain and regulatory space.
SMBC Rail Services is affiliated with SMBC Americas Holdings, which in turn is part of SMBC Group, a global financial group headquartered in Tokyo.
“As one of the leading full-service railcar platforms in North America, AITX provides an integrated, customer-centric solution to the freight shipping market through its expansive leasing offering and its railcar repair and maintenance network,” the companies said in the news release. “The transaction will add over 50,000 additional railcars to AITX’s fleet, along with an experienced team and longstanding customer relationships. The transaction will enable AITX to create significant incremental value for customers, employees, and all stakeholders.”
CN takes stake in Atlantic Canada short line
Canadian railway CN (NYSE: CNI) recently said it acquired a stake in the Cape Breton & Central Nova Scotia (CBNS) Railway from short-line operator Genesee & Wyoming (G&W).
CBNS has 145 miles of active track and interchanges with CN at Truro, Nova Scotia. A G&W subsidiary will continue to operate the CBNS line, which CN says will ensure a seamless continuation of service for customers.
“We are proud to be partnering with Genesee & Wyoming to serve existing customers on this line,” Patrick Lortie, CN senior vice president and chief strategy officer, said in a news release last week. “This partnership will further reinforce CN’s presence in eastern Canada where we believe there will be a growing role to play in the competitiveness of North American trade. It will also enable our network to reach new opportunities in the longer-term, further advancing our strategic agenda of accelerating profitable, sustainable growth.”
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