Infrastructure Capital Flows into California Rail Network

Ridgewood Infrastructure has acquired a controlling interest in Sierra Railroad Company, a California-based shortline rail platform providing freight rail, switching, storage and transloading services across key industrial, agricultural and energy supply chains.

Simultaneously with Ridgewood’s investment, Sierra is acquiring Central Valley Ag Transport, an agricultural products transload facility owner and operator serving customers along Sierra’s rail network.

Sierra’s operating subsidiaries include Sierra Northern Railway, which owns and operates freight rail services across approximately 130 miles of track in California, supporting a range of industrial and agricultural customers through switching, storage and logistics services.

The transaction also includes Sierra’s subsidiary Railpower Inc., which owns and operates the only Federal Railroad Administration–approved hydrogen-powered locomotive in the United States, positioning the platform at the forefront of low-emission rail technology.

“Sierra is a high-quality shortline 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 Ryan Stewart, Partner at Ridgewood Infrastructure.

“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,” added Kennan H. Beard III, CEO of Sierra Northern.

King & Spalding and Truist Securities advised Ridgewood on the transaction, while Sierra was advised by Northborne Partners. Debt financing was provided by Brookfield Infrastructure Credit.