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Norfolk Southern, CSX 'interested' in Florida East Coast Railway
FORTRESS Investment Group (FIG) was looking to sell Florida East Coast Railway Corporation (FECR) and Norfolk Southern, CSX and Genesee & Wyoming are the most likely bidders.
But since these rail assets provide exclusive access to the top two container seaports in Florida, perceived competitive advantages may block any deal for Class I's, warned New York's Seeking Alpha, a financial portal.
Not much information was provided by Bloomberg when it broke the news of the potential sale on October 13 aside from Barclays and Morgan Stanley being involved as advisors, and the fact that Florida East Coast Industries, Inc (FECI), the holding company of FECR, was taken private in 2007 by funds managed by Fortress in a transaction valued at US$3.5 billion.
Since this deal, the fund has spun off the railway operations into a separate company, FECR. It is unclear as to the portion of valuation specifically tied to FECR.
FECR is a 351-mile freight rail system located along the east coast of Florida, and is the exclusive rail provider to South Florida's seaports and connects with other railway systems to move freight across the US. Services provided include intermodal and carload solutions.
But since these rail assets provide exclusive access to the top two container seaports in Florida, perceived competitive advantages may block any deal for Class I's, warned New York's Seeking Alpha, a financial portal.
Not much information was provided by Bloomberg when it broke the news of the potential sale on October 13 aside from Barclays and Morgan Stanley being involved as advisors, and the fact that Florida East Coast Industries, Inc (FECI), the holding company of FECR, was taken private in 2007 by funds managed by Fortress in a transaction valued at US$3.5 billion.
Since this deal, the fund has spun off the railway operations into a separate company, FECR. It is unclear as to the portion of valuation specifically tied to FECR.
FECR is a 351-mile freight rail system located along the east coast of Florida, and is the exclusive rail provider to South Florida's seaports and connects with other railway systems to move freight across the US. Services provided include intermodal and carload solutions.
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