Phoenix Rail Embarks on Ambitious Growth Journey with Ancala Partnership
Deal News | Jan 28, 2025 | Ancala Partners LLP
Ancala Partners LLP, a prominent infrastructure investment firm, has launched a new short line rail platform called Phoenix Rail, headquartered in the US. This initiative comes amid continued growth in the short line railroad industry, which generates $3.6 billion annually and is benefitting from the increasing demand for cost-effective and lower carbon freight solutions. Phoenix Rail will be managed by a seasoned team experienced in transforming rail businesses, including CEO Alex Yeros and others who previously grew Pioneer Lines before its sale in 2022. Phoenix Rail's initial acquisition is LVRM, a 61-mile freight rail network located in Pennsylvania, strategically positioned to access major metropolitan areas. Ancala and Phoenix Rail aim to expand operations through strategic infrastructure investments and new customer relationships. Ancala has previously invested over $500 million in transport companies and has a proven track record in supporting growth through follow-on funding.
Sectors
- Transportation and Logistics
- Infrastructure Investment
Geography
- United States – The activities, including the formation of Phoenix Rail and the acquisition of LVRM, are based in the US, emphasizing the focus on the US rail transportation sector.
Industry
- Transportation and Logistics – The article primarily discusses the investment and strategic development within the US short line railroad industry, crucial for freight transportation.
- Infrastructure Investment – Ancala Partners focuses on infrastructure investment, and their establishment of Phoenix Rail and corresponding investments align with this sector.
Financials
- $500m – Ancala’s investment in leading transport companies, showcasing their capacity and experience.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Phoenix Rail | Target Company | Company | A newly formed platform aiming to be a leading operator of short line railroads in the US. |
| Ancala Partners LLP | Private Equity | Company | A private equity firm specializing in infrastructure investments, supporting Phoenix Rail's growth plans. |
| Alex Yeros | CEO | Person | CEO of Phoenix Rail with extensive experience in growing rail businesses. |
| LVRM | Acquired Company | Company | Phoenix Rail's first acquisition, owning and operating a freight rail network in Pennsylvania. |
| Association of American Railroads | Industry Data Provider | Industry | |
| Ross Grantham | COO | Person | COO of Phoenix Rail. |
| Jack Sullan | CFO | Person | CFO of Phoenix Rail. |
| Jim Crawford | Chief Strategy Officer | Person | Chief Strategy Officer at Phoenix Rail. |
| Lee Mellor | Partner at Ancala | Person | Partner at Ancala highlighting the potential in North America's rail market. |