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Banking and Finance

Related Companies getting into railroad, car rental biz

Related Companies is growing its infrastructure business.

Weeks after partnering with Uber to create the world’ first Skyport, the New York-based developer has formed a joint venture called BRX Transportation Holdings with Brookhaven Rail Partners and Stephens Capital Partners to acquire Pioneer Railcorp.

It has also made an equity investment in airport car rental company Conrac Solutions.

Pioneer is a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company.

BRX Transportation intends to grow the franchise through industrial development and the expansion of services to its customers.

The JV also intends to pursue the acquisition of additional short-line railroad companies

Andrew Right, managing partner of Related Instructure, said, “Short-line railroads play a key role in our country’s transportation infrastructure and are critical to the national and global economy. Pioneer, operating across 12 states, services a diverse set of customers with a wide array of cargo from agriculture to finished products. ”

Related struck a private financing deal with Conrac Solutions for a new ConRAC facility to consolidate all of the rent-a-car companies (RACs) into one location at Newark Liberty International Airport in New Jersey – part of the Terminal One Redevelopment Program.

The private capital solution is expected to become a national model as states and municipalities look to private capital providers to better manage the risk associated with many new infrastructure developments and is emblematic of the forward-thinking focus of both Related and Conrac Solutions.

Right said, “We see extensive growth prospects for ConRAC and multi-modal transportation hub development, rehabilitation, operation and financing at airports throughout the United States. There are other opportunities to leverage Conrac Solutions’ expertise in the development and operation of shared facilities to enhance efficiency in urban environments.

“Our shared focus on innovation, and the future state of mobility and the impact of autonomous vehicles, make them an ideal partner for investment and growth. ”

The deals are among the first by Related Infrastructure, a platform that focuses on investing in operating businesses and select development opportunities.

Earlier this summer, Related announced it is partnering with Uber to build the first skyport for the Uber Air network in the United States.

Uber Elevate will be the world’s first aerial rideshare network with electric Uber Air vehicles that would transport people across cities for the same price as an UberX trip of the same distance.

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