#USA #Investment #InfraRed Capital #Rail Modal Group #Albany, N.Y.

InfraRed Capital Partners Supports Growth of Rail Modal Group

In a significant move for the logistics and agriculture sectors, InfraRed Capital Partners (InfraRed), a prominent international infrastructure asset manager, has announced a strategic investment in Rail Modal Group (RMG). This acquisition marks a crucial step in enhancing intermodal rail transport, reinforcing the link between producers and global markets.

Background of Rail Modal Group

Founded in 2018 by Greg Oberting, RMG has established itself as a vital player in the U.S. inland intermodal rail terminal and export logistics landscape. The group specializes in efficiently moving freight from producers to foreign ports, thereby streamlining operations for agricultural producers and processors situated far from marine ports. With four large-scale terminals in operation, RMG has developed partnerships with railroads and ocean carriers, creating an integrated containerized export solution that cuts transportation costs and increases access to international markets.

As a leader in containerized exports, RMG has accomplished a remarkable feat by shipping over 1,200 unit trains, equivalent to approximately 200 million truck miles since its inception. This efficiency is critical as agriculture, which represents a $1.5 trillion sector in the U.S., often needs logistics solutions that cater to its unique geographical challenges.

The Importance of Intermodal Rail Transloading

Intermodal rail transloading serves as a cornerstone of the U.S. logistics chain, accounting for the movement of over 20 million containers annually. According to industry data, nearly 40% of long-distance freight in the United States is transported by rail. This integration is not just beneficial economically; it is essential for the sustainability of the supply chain, particularly in the agricultural sector, which relies heavily on transportation infrastructure to connect rural production areas with urban consumers and international markets.

Future Plans and Investment Focus

The investment from InfraRed will enable RMG to expand its capacity and enhance resilience at its existing terminals. Plans are underway to broaden service capabilities and establish additional locations to better serve the needs of customers. As expressed by Filip Guz, Partner and Head of Americas Investments at InfraRed, RMG possesses a robust infrastructure, solid customer relationships, and a promising pipeline of growth opportunities.

“We were impressed by Greg and the RMG management team and what they have built so far. With our backing, we aim to support the company as it expands its network and fulfills its long-term potential,” remarked Guz.

Leadership and Vision

Greg Oberting, found and CEO of RMG, highlighted the significance of this partnership, stating, “This transaction is a testament to the dedication of the entire RMG team and marks a pivotal milestone in our evolution.” He emphasized InfraRed’s understanding of the intermodal logistics environment and its commitment to long-term infrastructural investment as key aspects of their collaboration.

Conclusion

As both InfraRed Capital Partners and Rail Modal Group gear up for this new chapter, the partnership is expected to pave the way for enhanced operational efficiencies in agricultural logistics and to drive forward the critical intermodal rail transport sector in North America. The collaboration is not merely about investment; it's about ensuring the growth and resilience of essential supply chains that link American agriculture to the global market.

In summary, with the backing of InfraRed, RMG is poised to enhance its services and support producers across the agricultural landscape, showcasing how infrastructure investment can lead to significant advancements in logistics and supply chain efficiencies.