Ridgewood Infrastructure, a leading investment company focused on essential infrastructure in the US, announced that it has acquired a majority stake in Sierra Railroad Company, a California rail operator providing rail freight, switching, storage, and transloading services to a diverse portfolio of customers in the industrial, agricultural, and energy supply chains.
“Choosing a strategic partner involved identifying an investor with industry expertise, a compatible vision for growth, and the financial resources necessary to support the next stage of growth. Sierra had reached a point where significant short-term investment was needed to capitalize on the opportunities identified,” said Mike Hart, founder of Sierra Railroad Corporation.
Expanded acquisition through Sierra Railroad Company
In parallel with this investment, Sierra is also acquiring Central Valley Ag Transport (CVAT), the operator and owner of an agricultural transshipment facility serving customers along the Sierra rail network.
Sierra’s operating subsidiaries include Sierra Northern Railway, the company that owns and operates freight rail operations and provides switching, storage, and transshipment services on a network of approximately 210 km of track in California. The Sierra Northern network is strategically located near major agricultural and dairy production regions, key ports on the U.S. West Coast, and major industrial centers, providing essential last-mile connections within supply chains.
Sierra Northern also benefits from strategic interconnections with Class I rail operators, including access to the Union Pacific Railroad and BNSF Railway networks, which provides customers with greater network redundancy, route flexibility, and access to the national rail market.
The transaction also includes the Railpower subsidiary, part of Sierra Railroad Company, which owns and operates the only hydrogen-powered locomotive approved by the U.S. Federal Railroad Administration (FRA). This achievement highlights Sierra’s role in the development of innovative rail technologies and zero-emission locomotives.
The acquisition of Central Valley Ag Transport strengthens Sierra’s platform by vertically integrating transshipment services for agricultural products, which are essential to the dairy industry and the California agricultural sector in general. CVAT provides specialized transshipment services along the Sierra Northern Railway network, facilitating the efficient transport of feed and other agricultural products while strengthening customer relationships and increasing rail utilization.
The California rail operator “represents a high-quality shortline platform with solid fundamentals, a diversified customer base, and a strategic presence in some of California’s most important industrial and agricultural corridors,” said Ryan Stewart, partner at Ridgewood Infrastructure.
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