Patriot Rail Company entered into an agreement to acquire the short line operator Salt Lake Garfield & Western Railway (SLGW) and its related entities Caballero and Caballero 2, storage and transload service providers.
The financial terms were not disclosed, and the transaction is subject to customary closing conditions and regulatory approvals.
“The agreement aligns with Patriot’s vision of future growth as a premier service provider in the U.S. short line railway industry and complements the Patriot portfolio. SLGW provides premier service to its customers and we are honored to carry that legacy forward,” John Fenton, CEO of Patriot said.
Salt Lake City-based SLGW has added both track and transload services over the past few years and has plans to expand in 2021.
Operating for over 125 years, SLGW currently handles more than 6,000 loaded railcars annually within its 42-km line. Its location, in the heart of Salt Lake City’s industrial corridor, is at the center of the region’s logistics. Neighboring the recently redeveloped and expanded Salt Lake International Airport, the line runs adjacent to two major interstates and connects with the Union Pacific Railroad and BNSF Railway. In 2017, SLGW was awarded Andeavor’s Supplier Recognition Award for Innovation and Value.
The state of Utah supports several business growth initiatives including a Mega Site Programme and an inland port authority and district comprising over 4,000 acres of developable land, known as the Northwest Quadrant.
“The state of Utah is thriving with growth projects. Patriot is excited to participate in these initiatives and we look forward to the evolving opportunities,” John Fenton said.
SLGW represents the first bolt-on acquisition by Patriot since First Sentier Investors (FSI), a leading global investor in infrastructure, acquired Patriot in October 2019.
Patriot Rail Company is owned by Australia-based global asset manager First Sentier Investors.
SLGW is a Class III short line rail operator that serves the local rail transfer, rail storage and rail-served warehouse requirements of a wide range of customers who are moving commodities into and out of the Greater Salt Lake City area.