What trends are you seeing in the M&A market for the rail industry? (Mike Ferguson)

Mike Ferguson (2)

While there has been a slight decline in the average number of deals announced for 2022 in the US, we have seen a consistent demand for quality logistics assets across North America from a diverse group of buyers. Depending on a specific buyer’s current footprint and appetite for expansion, we continue to see demand for transload/intermodal locations, short lines, ports, warehouses, and rail service locations. We expect to see continued buying activity and consolidation of ownership of rail-served logistics assets.

Frequently, demand and price are a direct function of the quality and condition of fixed assets, the stickiness of existing customers, and the diversity of modes of transportation. In fast-growing areas, even rail-served real estate with delipidated fixed assets or significant undeveloped land is receiving serious consideration for future development.

 

Commtrex is able to utilize the most extensive network in the rail industry to help match buyers and sellers of logistics assets. These involve both rail-served and non-rail-served assets, including but not limited to transload operations, ports, terminals, shortlines, and warehouses.