The Surface Transportation Board has approved Fortress Investment Group’s purchase of the Wheeling & Lake Erie Railroad and the Akron Barberton Cluster. This purchase will be effective from December 26.
In a press release Wednesday, the board noted that the two properties will join the six Class III railroads already in the Castle portfolio (through Transstar Railroad), which is one of the customers currently served by W&LE and Transstar Railroad Union, which supports the deal, and there are no filings opposing the purchase.
W&LE operates approximately 982 miles in Ohio, Pennsylvania, West Virginia and Maryland, while ABC operates approximately 84 miles in the Akron, Ohio area. Both were previously owned by The Wheeling Corp.
In granting Fortress’ request for an exemption from pre-approval requirements for the transaction, the board agreed with Fortress’ contention that the move would increase the two railroads’ access to capital and thus aid in strategic investment decisions and growth opportunities, saying it would have no significant impact on competition. The full decision is available here.
Fortress is also a major investor in passenger rail operator Brightline.
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