Patriot Rail to acquire Delta Southern Railroad
Posted: 28 September 2022 | Elliot Robinson (Editorial Assistant - Global Railway Review) | No comments yet
Patriot Rail are to acquire Delta Southern Railroad as they look to enhance their presence for passengers in Louisiana.
Patriot Rail Company LLC has announced that it has entered into a definitive agreement to acquire Delta Southern Railroad, Inc. (DSRR), a short line railroad company operating two-line segments in Louisiana. The financial terms of the transaction were not disclosed.
DSRR operates over 40 miles of track and serves two port facilities, Lake Providence Port and Madison Parish Port, located on the Mississippi River. DSRR interchanges with Kansas City Southern and Union Pacific Railroad. DSRR is well situated in a strong chemical and petrochemicals corridor, with a customer base comprising several large-scale chemical manufacturers as well as forest industry shippers. DSRR’s lines are located on the Kansas City Southern “Meridian Speedway” and Louisiana Highway 20.
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The transaction follows Patriot Rail’s closure on 14 September 2022 of the acquisition of Pioneer Lines. Upon completion of the transaction with DSRR, Patriot Rail’s continuing growth emphasis will increase the company’s short line operations to 32 railroads and elevate Patriot’s support for rail customers across America. DSRR will enhance Patriot’s Louisiana presence along with Patriot-owned Louisiana and North West Railroad (LNW), which is headquartered in Homer, Louisiana, and provides rail service from Gibsland, Louisiana, to McNeil, Arkansas.
“Including Delta Southern in Patriot Rail’s expanding network will enable further competitive options for rail shippers in Louisiana and across the country,” John E. Fenton, Chief Executive Officer for Patriot Rail, said. “This strategic acquisition adds to the company’s most recent expansion and exemplifies our growth focus on quality rail franchises to meet customer needs.”
“We are excited to join a highly-respected company like Patriot, which has a strong track record of growth and significant resources to continue building a first-class rail network,” Jon Ryan, Chief Executive Officer for DSRR, said. “I am incredibly proud of the strong foundation that DSRR has built, and as we bring together two best-in-class companies, I am excited to see what we can accomplish together. As DSRR enters its next chapter, I am confident we will continue to drive benefits for our customers and our employees, as well as the local Louisiana communities that we operate in.”
The transaction is subject to customary closing conditions and regulatory authorisation.