Phoenix Rail Emerges from Acquisition of Lehigh Valley Rail Management
Independent infrastructure manager Ancala and Arkadia Rail Partners have formed Phoenix Rail following the acquisition of Lehigh Valley Rail Management (LVRM), expanding their presence in the North American rail market.
Phoenix Rail's acquisition of LVRM marks a significant investment in the resilient and fragmented short line rail sector. LVRM owns and operates a 61-mile freight rail network, an intermodal terminal in Bethlehem, Pennsylvania, and a transload facility in Johnstown, Pennsylvania. It connects to major Class 1 carriers Norfolk Southern, CSX, and CPKC.
Led by Chief Executive Alex Yeros, Phoenix Rail's management team aims to build a best-in-class railroad and rail-related business platform. They plan to invest in infrastructure, enhance existing customer relationships, develop new ones, and pursue adjacent business opportunities for growth.
"LVRM presents an attractive investment opportunity with clear potential to build on customer partnerships, enhance services, and drive growth," said Yeros.
Ancala Partner Lee Mellor added, "Short line rail in North America offers substantial growth opportunities. By partnering with Alex and his experienced team, we can deploy capital and establish a significant rail business in the U.S."
Ancala has invested over $500 million in transportation companies globally, including Avincis, Europe's largest aerial emergency services provider, Liverpool John Lennon Airport, and Scandinavian rail freight operator Hector Rail. Phoenix Rail represents its second infrastructure investment in North America, following Noventa Energy in 2023.