InfraRed Capital Acquires Rail Modal Group
A UK infrastructure fund just bought into US agricultural rail exports — Rail Modal Group’s 1,200 unit trains have replaced 200M truck miles.
InfraRed Capital Partners has acquired a majority stake in Rail Modal Group (RMG), a US inland intermodal rail terminal and export logistics platform serving agricultural producers across the Midwest and Plains, in a deal that signals continued institutional investor appetite for rail-adjacent infrastructure.
What RMG Actually Does
Founded in 2018, RMG operates four large-scale terminals connecting regional agricultural producers with major North American rail networks and US gateway ports. The company collects containerized exports from inland producers and consolidates them onto full-length trains carrying more than 100 railcars each, which travel directly to West Coast container ports — preserving product quality and giving producers far from marine ports direct access to international markets. RMG has shipped more than 1,200 unit trains since founding, representing an estimated 200 million truck miles removed from the road.
The Deal Structure
Founder and CEO Greg Oberting retains an investment and continues leading the business. InfraRed plans to invest in additional capacity and resilience at existing terminals, expand RMG’s service range, and develop new locations. InfraRed manages roughly $13 billion in equity capital across infrastructure strategies and operates as part of Sun Life’s SLC Management business — the firm frames RMG as critical agricultural infrastructure in a market where more than 40% of long-distance US freight moves by rail.
What This Means for Procurement Teams
Institutional capital entering niche rail infrastructure signals durability, not just growth. A $13 billion infrastructure manager backing a specialized agricultural export platform suggests this segment is viewed as stable, long-duration infrastructure — worth treating RMG’s expansion plans as a genuine long-term capacity option, not a speculative bet.
Inland producers far from ports have a real alternative to trucking the full distance. RMG’s model specifically targets shippers who’d otherwise face long truck hauls to reach a marine port — agricultural exporters in the Midwest and Plains should evaluate whether RMG’s terminal network reaches their production region.
New terminal development could open new geographic access points. With InfraRed explicitly funding new terminal locations, procurement teams currently priced out of RMG’s existing four-terminal network should watch for expansion into new regions over the next several years.
FAQ
What is Rail Modal Group?
RMG is a US inland intermodal rail terminal and export logistics platform, operating four terminals that consolidate containerized agricultural exports onto unit trains bound for West Coast ports.
Who now owns Rail Modal Group?
InfraRed Capital Partners, a London-based global infrastructure asset manager with roughly $13 billion in equity capital under management, acquired a majority stake through one of its value-add funds, while founder Greg Oberting retains an investment and continues leading the business.
How much freight has RMG moved since founding?
RMG has shipped more than 1,200 unit trains since its 2018 founding, an amount the company estimates is equivalent to approximately 200 million truck miles.
Sources
- Container News, InfraRed Capital Partners Acquires Majority Stake in Rail Modal Group
- PR Newswire, InfraRed Capital Partners and Rail Modal Group Announce Investment to Drive Next Stage of Growth
- Logistics Management, InfraRed Capital Partners Acquires Majority Stake in Rail Modal Group to Fuel Growth