Patriot Rail to acquire short-line operator Delta Southern

Patriot Rail Co. LLC yesterday announced it has entered into a definitive agreement to acquire Delta Southern Railroad Inc. (DSRR), a short-line company operating two line segments in Louisiana. 

Financial terms were not disclosed.

DSRR operates over 40 miles of track and serves two port facilities — Lake Providence Port and Madison Parish Port — located on the Mississippi River. DSRR interchanges with Kansas City Southern and Union Pacific Railroad. DSRR's lines are located on the KCS Meridian Speedway and along Louisiana Highway 20.

The short line is well situated in a strong chemical and petrochemicals corridor, with a customer base comprising several large-scale chemical manufacturers as well as forest industry shippers, Patriot Rail officials said in a press release.

"Including Delta Southern in Patriot Rail's expanding network will enable further competitive options for rail shippers in Louisiana and across the country," said Patriot Rail CEO John Fenton. "This strategic acquisition adds to the company's most recent expansion and exemplifies our growth focus on quality rail franchises to meet customer needs."

The transaction comes on the heels of Patriot Rail's acquisition of Pioneer Lines, which closed Sept. 14. After it completes the DSRR acquisition, Patriot Rail will have increased its short-line operations to 32 railroads.

DSRR will increase Patriot Rail's Louisiana presence along with its Louisiana and North West Railroad, which provides rail service from Gibsland, Louisiana, to McNeil, Arkansas.

"As DSRR enters its next chapter, I am confident we will continue to drive benefits for our customers and our employees, as well as the local Louisiana communities that we operate in," said DSRR CEO Jon Ryan.

Winston & Strawn LLP and Gentry Locke served as legal counsel to Patriot Rail. Northborne Partners served as financial adviser to DSRR and Reed Smith LLP served as legal counsel.