Fortress Transportation and Infrastructure Investors has agreed to purchase United States Steel Corp.’s rail operating subsidiary, Transtar, for $640 million.
Transtar consists of six operating freight railroads connected to USS’s largest production facilities. Of the six railroads, one serves Gary Works, USS’s largest manufacturing plant, and one serves Mon Valley Works, USS’s lowest-cost facility in the flat-rolled segment.
FTAI and USS also agreed to enter into an exclusive strategic rail partnership under which FTAI will provide rail service to USS for an initial term of 15 years, with minimum volume commitments for the first five years.
“FTAI is extremely excited to enter into this strategic rail partnership with USS as it allows us to significantly increase our rail business by providing essential rail services to one of the pre-eminent integrated steel producers in North America under a long-term contractual arrangement,” said Joe Adams, chair