STB approves Fortress' acquisition of two short lines

The Surface Transportation Board on Nov. 26 announced it granted authority for Fortress Investment Group LLC to acquire control of Wheeling & Lake Erie Railway Co. (W&LE) and Akron Barberton Cluster Railway Co.  

The acquisition will add to Fortress’s existing portfolio of six short lines. W&LE operates over 982 miles of track in Ohio, Pennsylvania, West Virginia and Maryland. ABC operates over 84 miles of track in the Akron area in Ohio.

In its Aug. 28 filing with the STB, Fortress asserted that the acquisition will enable W&LE and ABC to benefit from the short-line experience and financial strength of Fortress’s other holdings. Fortress also said that the transaction will not lead to higher rates or reduced service and that W&LE and ABC will continue to provide freight-rail service over their respective lines, according to an STB press release.

W&LE and Fortress-controlled Union Railroad Co. LLC share a common customer, and that customer filed a statement in support of the transaction. There were no filings in opposition to the transaction, STB officials said.

In its decision, the STB determined that the acquisition will not have a significant impact on competition, but will enhance W&LE’s and ABC’s access to capital and therefore facilitate strategic investment decisions and growth opportunities.

The STB's decision can be downloaded here.