Backed by investment manager 3i, Regional Rail has taken over a portfolio of freight rail assets previously owned by G3 Canada for an undisclosed sum.

The deal includes the acquisition of G3’s freight rail assets in Western Canada.

Regional Rail will also purchase stakes in three other freight rail assets in Western Canada, along with the Great Sandhills Railway.

This rail portfolio is used by different industrial customers across a range of agricultural and energy end markets.

Regional Rail president and CEO Al Sauer said: “We are looking forward to welcoming the employees of Great Sandhills Railway to our team and working together with our new partners to execute our top-line growth strategy.”

3i North American Infrastructure head and managing partner Rob Collins said: “We are excited to expand into the Canadian market, where we see significant industrial growth opportunities across the railroads.

“Since our initial investment in 2019, we have believed Regional Rail offers an attractive platform for consolidation and this acquisition further strengthens that conviction.”

3i and Regional Rail first forged an alliance in July 2019. Since then, Regional Rail has acquired ten freight railroads across North America, expanding its operations by more than double.

Regional Rail offers freight transportation, car storage and transloading services across the US, as well as freight rail services in western Canada.

Through its Diamondback Signal subsidiary, the firm offers railroad crossing signal design, construction, inspection and maintenance services to a diverse base of short-line and industrial customers in 20 US states.