MGS Provides Due Diligence Expertise for Phoenix Rail’s Inaugural Acquisition
Phoenix Rail—a new shortline railroad platform formed by Arkadia Rail Partners and leading independent infrastructure investor Ancala—completed its first acquisition in early 2025: Lehigh Valley Rail Management. LVRM owns and operates a 61-mile freight rail network in Bethlehem and Johnstown, PA, with an intermodal terminal in Bethlehem, and services Class 1 railroads Norfolk Southern, CSX and CPKC.
Phoenix Rail turned to MGS partners Ray Groble, Pam Nehring and Matt Hammer to undertake the due diligence investigation and evaluation necessary to complete the transaction. Ray, Pam and Matt conducted an exhaustive review of all applicable real estate, STB, FRA, EPA and state records to confirm LVRM’s ownership of the acquired assets, compliance with governmental mandates and exposure to liability.
“We intend to leverage our industry experience to acquire, grow and ehhance this platform across the U.S.”
MGS provides comprehensive strategic guidance to clients navigating the complex and highly regulated rail sector, drawing on our deep knowledge of railroad operations and federal law governing railroads.
