VTG Rail acquires Redwood Rail fleet
Written by William C. Vantuono, Editor-in-ChiefVTG Rail Inc., the U.S. subsidiary of VTG AG, has acquired the fleet of U.S. railcar leasing company Redwood Rail LLC. The transaction, which adds 1,135 railcars to VTG’s fleet, enlarging it to about 5,200 units, includes the leases associated with those cars as well Redwood Rail’s existing customer relationships.
VTG said the railcars purchased from Redwood Rail further diversify its portfolio, adding grain, cement, sand, plastics products and lumber cars. Assuming Redwood’s existing leases adds two Class I railroads as well as a global commodities company to VTG’s customer base.
“Acquiring Redwood Rail’s fleet is an important strategic step that will further strengthen our position in the U.S. market,” said VTG Rail President Chris Schmalbruch. “Having purchased the Sumitomo fleet of around 2,450 railcars at the end of 2011, we are very pleased to have found another investment that is an excellent fit for us and complements our portfolio.”
VTG AG, based in Hamburg, Germany, is one of Europe’s leading railcar leasing and rail freight logistics companies, with a fleet consisting of more than 80,000 railcars. The company offers a full range of services, providing tank cars, intermodal cars and various types of freight cars. VTG AG offers comprehensive multi-modal logistics services, centered around rail and global tank and container transportation. The company has three divisions: Railcar, Rail Logistics and Tank Container Logistics, serving customers from many industrial sectors, among them the chemical, petroleum, automotive, paper and agricultural industries.
