3i Group plc (3i) announced an agreement to invest in Regional Rail, LLC (Regional Rail), a leading owner and operator of short-line freight railroads and rail-related businesses throughout the Mid-Atlantic U.S.

Formed in 2007, Regional Rail provides freight transportation, car storage, and transloading services in New York, Pennsylvania, and Delaware across three railroads and over 155 miles of track connecting into a diversified Class 1 railroad network. In 2018, the company moved over 13,000 carloads while serving over 70 customers across a diversified set of end-user markets including heating, fuel blending, agriculture, chemicals, and metals. The company’s wholly owned subsidiary, Diamondback Signal, is the premier provider of rail-crossing installation and maintenance services to over 100 public- and private-sector customers across 20 states.

Since inception, the company has seen steady growth of its existing line traffic, successfully expanding to neighboring regions and into value-accretive, infrastructure services.

Regional Rail will represent 3i’s third infrastructure investment in North America since 2017 and will serve as 3i’s rail infrastructure platform for future investment in the sector.