Patriot Rail to Acquire Delta Southern Railroad

Patriot Rail Company LLC have announced it has entered into a definitive agreement to acquire Delta Southern Railroad, Inc. (DSRR), a short line railroad company operating two line segments in Louisiana. The financial terms of the transaction were not disclosed. 

DSRR operates over 40 miles of track and serves two port facilities – Lake Providence Port and Madison Parish Port – located on the Mississippi River. DSRR interchanges with Kansas City Southern and Union Pacific Railroad. DSRR is well situated in a strong chemical and petrochemicals corridor, with a customer base comprising several large-scale chemical manufacturers as well as forest industry shippers. DSRR’s lines are located on the Kansas City Southern “Meridian Speedway” and Louisiana Highway 20.

The transaction follows Patriot Rail’s closure on September 14, 2022 of the acquisition of Pioneer Lines. Upon completion of the transaction with DSRR, Patriot Rail’s continuing growth emphasis will increase the company’s short line operations to 32 railroads and elevate Patriot’s support for rail customers across the U.S. DSRR will enhance Patriot’s Louisiana presence along with Patriot-owned Louisiana and North West Railroad (LNW), which is headquartered in Homer, Louisiana, and provides rail service from Gibsland, Louisiana, to McNeil, Arkansas.

“Including Delta Southern in Patriot Rail’s expanding network will enable further competitive options for rail shippers in Louisiana and across the country,” said John E. Fenton, Patriot Rail’s chief executive officer. “This strategic acquisition adds to the company’s most recent expansion and exemplifies our growth focus on quality rail franchises to meet customer needs.”

“We are excited to join a highly-respected company like Patriot, which has a strong track record of growth and significant resources to continue building a first-class rail network,” said DSRR chief executive officer Jon Ryan. “I am incredibly proud of the strong foundation that DSRR has built, and as we bring together two best-in-class companies, I am excited to see what we can accomplish together. As DSRR enters its next chapter, I am confident we will continue to drive benefits for our customers and our employees, as well as the local Louisiana communities that we operate in.”

The transaction is subject to customary closing conditions and regulatory authorization. Winston & Strawn LLP and Gentry Locke served as legal counsel to Patriot. Northborne Partners served as financial advisor to DSRR and Reed Smith LLP served as legal counsel.

About Patriot Rail 

Patriot Rail operates 31 regional and freight short line railroads, a scenic rail excursion train, and rail-related services companies with operations in 23 states. Service capabilities include railcar storage, contract switching, transloading, railcar cleaning, engineering services, excursion railroads, real estate, and track access. Patriot Rail is also a direct partner in providing railcar repair and maintenance, railcar dismantling, and environmental services, including centralized wastewater treatment. For more information, visit patriotrail.com.

About Delta Southern 

Established in 2009, Delta Southern Railroad, Inc. is a short line railroad comprised of two lines, located approximately sixty miles apart in Monroe and Tallulah, Louisiana and serving two port facilities located on the mighty Mississippi River: Lake Providence Port and Madison Parish Port. Delta Southern transports grain, aggregate materials, agricultural products, cotton, coal, chemicals, fertilizer, forest products, sand clay and soda ash. Delta Southern is proud to work closely with well-respected railroad and interchange partners: Kansas City Southern (KCS) and Union Pacific Railroad (UP). DSRR fosters strategic alliances with integrators and service providers to expand new economic opportunities within the region and for the communities it serves and calls home. For more information, visit www.deltasouthern.net.