Investment firm Ridgewood Infrastructure on March 10 reported acquiring a controlling interest in California-based Sierra Railroad Company (Sierra), which provides short line, switching, storage, and transloading services. At the same time, it said, Sierra is acquiring Central Valley Ag Transport (CVAT), an agricultural products transload facility owner and operator serving customers along Sierra’s rail network.
Sierra’s operating subsidiaries include Sierra Northern Railway (SERA), Railway Age’s 2026 Short Line of the Year Honorable Mention, which owns and operates the freight rail business and provides switching, storage, and transloading services across approximately 130 miles of track in California. SERA interchanges with BNSF and Union Pacific, and its network is located near dairy and agricultural regions, West Coast ports, and industrial centers.
According to Ridgewood Infrastructure, its transaction also includes SERA’s subsidiary Railpower, Inc. Last fall, their jointly developed HFC (hydrogen fuel cell)-powered, ZE (zero-emission) four-axle switcher entered service. The unit—the first of four—is described as “the first [of its type] in the United States built specifically for freight rail.”
“The acquisition of CVAT strengthens SERA’s platform by vertically integrating agricultural transload capabilities that are essential to California’s dairy and broader agricultural industry,” Ridgewood Infrastructure said. “CVAT provides specialized transloading services along SERA’s network, enabling efficient movement of feed and agricultural products while deepening customer relationships and increasing rail utilization.”
“SERA is a high-quality short line rail platform with strong fundamentals, a diversified customer base, and a strategic footprint in some of California’s most important industrial and agricultural corridors,” said Ridgewood Infrastructure Partner Ryan Stewart, who is a former Managing Director for Fortress Investment Group’s infrastructure business. “Our team brings deep experience owning and operating short line and other railroad businesses across the United States, and we see meaningful opportunities to build on SERA’s strong foundation by driving additional freight volumes for both existing customers and new customers, expanding transload capabilities, and supporting innovation across the platform.”
“This partnership with Ridgewood marks an important next step for SERA,” noted Kennan H. Beard III, CEO of SERA. “Ridgewood’s experience operating rail and infrastructure businesses, combined with their investment approach, gives us the resources and support to accelerate execution across the platform. We are focused on growing volumes, expanding transload capacity, and continuing to serve our customers with the reliability and responsiveness they expect.”
“In selecting a partner for Sierra, it was critical to find an investor with the sector expertise, aligned strategic perspective, and financial capacity to support the company’s next phase of growth,” commented Mike Hart, Founder of Sierra, who has led the company since its acquisition in 1995. “Sierra had reached a point where meaningful near-term investment was required to pursue identified opportunities. Ridgewood stood apart as a differentiated, value-added partner with a deep understanding of the rail industry and a proven track record of building lower middle-market infrastructure businesses. Their experience and approach made them the right long-term owner for Sierra, and I am pleased to remain a significant investor alongside Ridgewood.”
Ridgewood was advised by King & Spalding and Truist Securities. Sierra was advised by Northborne Partners, and Honigman LLP served as its legal counsel. Debt financing for the transaction was provided by Brookfield Infrastructure Credit.
