Pacific Imperial Railroad forges pact to acquire infrastructure-improvement capital

Pacific Imperial Railroad Inc. (PIR) has entered into a strategic advisory agreement with Diamond Capital Advisors L.L.C. to raise up to $150 million for infrastructure improvements.

Under the agreement, the funds will help PIR repair bridges and tunnels, and replace track and ties on 70 miles of track between the U.S./Mexico border and a connecting Union Pacific Railroad line in El Centro, Calif.

The capital will enable PIR to create an operational rail system on the old Desert Line and build significant volumes of freight from the Maquilatropolis region of Baja, Calif., said Diamond Capital Managing Director Gary Ferrell in a press release.

PIR is the only company providing freight-rail services on the Desert Line, which serves the Tijuana-Tecate region of Baja California, Mexico and eastern San Diego County. The railroad retains a 99 year lease from the San Diego and Arizona Railroad and San Diego Metropolitan Transit System to operate the line.