Anacostia Rail Holdings Company (ARH) and Brown Brothers Harriman Capital Partners (BBHCP) have jointly announced the establishment of Precision Terminal Logistics (PTL), a new venture poised to revolutionize transloading operations across the United States. This strategic partnership combines the operational expertise of ARH with the investment acumen of Brown Brothers Harriman Capital Partners to create an entity focused on operating, developing, and acquiring transloading terminals nationwide.
PTL’s formation was also marked by the acquisition of key assets from Arrow Material Services, LLC, a well-established provider in the transloading sector. Transloading, a critical component of modern logistics, allows businesses without direct access to rail lines to leverage the economic and environmental advantages of the extensive North American railroad network. By efficiently transferring goods between railcars and trucks, transloading expands market reach and optimizes supply chains.
Headquartered near Pittsburgh, PA, PTL commences operations with a significant footprint, encompassing 23 terminals and facilities across 15 states. These terminals will offer a comprehensive suite of logistics solutions, catering to the diverse needs of transportation companies. Services include materials handling, comprehensive logistics management, transloading expertise, secure storage for bulk commodities, and even facility construction.
While operating as an independent entity, PTL will strategically benefit from the extensive networks and industry relationships of both ARH and Brown Brothers Harriman Capital Partners. This synergy is designed to fuel PTL’s growth trajectory and service expansion within the competitive logistics landscape. To lead this ambitious endeavor, PTL has appointed Ray Nixon as Chief Executive Officer. Nixon brings over two decades of specialized experience in the transloading industry, making him ideally suited to steer the new company.
“The entire PTL team is enthusiastic about this partnership with ARH and Brown Brothers Harriman Capital Partners,” stated Nixon. “We recognize a substantial opportunity for growth and innovation with this new company. The strategic guidance from ARH and BBHCP was crucial in formulating the asset acquisition strategy, and we are confident that our combined expertise will enable PTL to deliver inventive and effective solutions for transportation companies and end-user facilities.”
Brown Brothers Harriman Capital Partners’ investment in PTL was channeled through the BBH Capital Partners Opportunities Fund, L.P. (CP Opportunities Fund). This fund, which closed in 2018 with $250 million in committed capital, focuses on strategic investments in promising market opportunities.
Donald Hardie, Managing Director at Brown Brothers Harriman and Co-Manager of the CP Opportunities Fund, commented, “The creation of PTL provides a compelling opportunity to invest in a portfolio of established assets alongside a partner, Anacostia Rail Holdings, that brings significant strategic and operational strengths, underpinned by their in-depth market knowledge and broad relationships within the rail and transload sectors.”
Jeffrey Price, Senior Vice-President at Brown Brothers Harriman and Co-Manager of the CP Opportunities Fund, further added, “Brown Brothers Harriman and ARH both possess deep-rooted connections to the railroad industry. This invaluable network, combined with our institutional knowledge, will be critical to driving PTL’s future expansion and success.”
Peter Gilbertson, Chief Executive Officer of ARH, highlighted the collaborative advantage: “This venture represents a unique convergence of high-quality operating experience with the strategic insights and market understanding of Anacostia and Brown Brothers Harriman. We are excited to partner with Brown Brothers Harriman Capital Partners on PTL and anticipate a highly successful strategic and financial alliance.”
About Brown Brothers Harriman Capital Partners
Brown Brothers Harriman Capital Partners (BBHCP), the private equity arm of Brown Brothers Harriman & Co., provides flexible and friendly capital solutions to growing middle-market companies. BBHCP distinguishes itself through its adaptable investment approach, acting as both a control and non-control investor. Investments are structured using a mix of equity and subordinated debt, tailored to meet the specific needs of each portfolio company. With typical investments ranging between $10 million and $125 million per platform, Brown Brothers Harriman Capital Partners supports a wide array of transactions, including management buyouts, leveraged buyouts, growth financing, recapitalizations, strategic buy-and-build initiatives, and acquisitions. BBHCP leverages its extensive experience and deep industry knowledge to partner with management teams, fostering sustainable growth and long-term value creation. Their commitment extends beyond capital, offering strategic guidance and access to the broader Brown Brothers Harriman network.
About Anacostia Rail Holdings
Anacostia Rail Holdings Company (ARH) is a privately held enterprise that owns and manages freight railroads across the United States. ARH’s network comprises six railroads, collectively handling over one million carloads annually. Operating across more than 600 miles of track, ARH delivers essential freight services to both major metropolitan areas and smaller communities, playing a vital role in the North American supply chain.
