The Surface Transportation Board (STB) on Nov. 26 granted authority for Fortress Investment Group LLC (Fortress) to acquire control of Class II Wheeling & Lake Erie Railway Company (W&LE) and terminal switching carrier Akron Barberton Cluster Railway Company (ABC), boosting Fortress’ small-road portfolio to eight.
Two-time Railway Age Regional of the Year recipient W&LE operates over approximately 982 miles of track in Ohio, Pennsylvania, West Virginia, and Maryland. ABC, a W&LE wholly owned subsidiary, runs on roughly 84 miles of track in the vicinity of Akron, Ohio.
“The Board’s decision follows a thorough review of the petition for exemption filed by Fortress on August 28, 2025,” the STB reported (download STB decision below). “In its filings, Fortress explains that the transaction will enable W&LE and ABC to benefit from the short line railroad experience and financial strength of Fortress’s other holdings. Fortress also asserts that the transaction will not lead to higher rates or reduced service and that W&LE and ABC will continue to provide freight rail service over their respective lines.”
According to the STB, W&LE and Union Railroad Company, LLC, a carrier already controlled by Fortress through Transtar, share one common customer, and that customer filed a statement in support of the transaction. There were no filings in opposition to the transaction, the federal agency reported.
The transaction “satisfies the applicable statutory criteria and will not result in significant impacts on competition,” and “will enhance W&LE’s and ABC’s access to capital and therefore facilitate strategic investment decisions and growth opportunities,” according to the STB.
FTAI Infrastructure Inc. on Aug. 6 reported agreeing to purchase The Wheeling Corporation, owner of W&LE, for cash consideration of $1.05 billion from an entity controlled by Larry R. Parsons, CEO of The Wheeling Corporation.
FTAI Infrastructure Inc. is externally managed by an affiliate of diversified global investment firm Fortress Investment Group LLC, and includes in its portfolio: Transtar, which owns and operates six Class IIIs and a contract switching company transporting raw materials, semi-finished products, and finished products for a wide range of industries; Jefferson Energy Companies in Texas; Repauno Port & Rail Terminal in Pennsylvania; and Long Ridge Energy & Power in Ohio. Concurrently with the acquisition’s closing, FTAI Infrastructure Inc. said it planned to refinance its existing 10.50% senior notes and Series A preferred stock. According to the company, it had received commitments for $2.25 billion of total capital including $1.25 billion of new debt to be issued by FTAI Infrastructure Inc. and $1 billion of preferred stock to be purchased by Ares Management funds and issued by a newly formed holding company that will own the combined Transtar and W&LE business.
