InfraRed Capital Partners has acquired a majority stake in Rail Modal Group (RMG), a US inland intermodal rail terminal and export logistics platform.
The investment was made through one of InfraRed’s value-add funds. Financial terms of the transaction were not disclosed.
RMG founder and CEO Greg Oberting will retain an investment in the company and continue to lead the business.
The transaction is expected to support RMG’s next phase of growth, including additional investment in its existing terminals and the development of new locations.
RMG connects US producers with container ports
Founded in 2018, RMG operates inland terminals that connect US producers with international markets.
The company works with railroads and ocean carriers to provide containerised export services from production areas to marine ports.
Its operations are particularly focused on agricultural supply chains, where many producers are located far from major container ports and inland intermodal hubs.
RMG consolidates containerised cargo at its terminals before moving it on unit trains of more than 100 railcars. These trains provide on-dock connections to US West Coast container ports.
Since its launch, RMG has shipped more than 1,200 unit trains. According to the company, this represents the equivalent of approximately 200 million truck miles.
Investment to support intermodal expansion
InfraRed and RMG plan to invest further in the platform following the transaction.
The strategy includes expanding capacity and resilience at existing terminals. RMG also plans to broaden its services and develop additional locations.
Intermodal rail plays a significant role in the US logistics network. According to the companies, more than 20 million containers are served by intermodal rail transloading each year.
In addition, more than 40% of long-distance freight in the United States moves by rail.
“RMG is an established, asset-backed platform providing essential infrastructure to customers across the agricultural and logistics supply chains,” said Filip Guz, Partner and Head of Americas Investments, InfraRed Capital Partners.
“The company has developed a differentiated network, strong customer relationships and a compelling pipeline of growth opportunities,” added Guz.
InfraRed said it plans to provide capital, infrastructure expertise and operational resources as RMG expands its network.
“This transaction represents an important milestone in the evolution of Rail Modal Group and is a testament to the hard work and dedication of the entire RMG team,” said Greg Oberting, Founder and Chief Executive Officer, Rail Modal Group.
Oberting said InfraRed’s experience in scaling infrastructure platforms and its long-term investment approach would support RMG’s future development.
