British private equity firm buys Central Mass. rail line, Barre logistics site

British private equity firm 3i Group has purchased the Massachusetts Central Railroad, a company operating a 25-mile freight railroad stretching from Palmer to Barre. 

3i Group-owned Regional Rail purchased the company from John J. Pondelli Jr. Family Trust in a stock purchase agreement for an undisclosed amount. The purchase includes Wildwood Reload, a transloading logistics facility in Barre.

The acquisition is Pennsylvania-based Regional Rail’s first acquisition in New England, expanding a North American network of 18 railroads across 10 U.S. states and two Canadian provinces, the company announced Monday.

John J. Pondelli Jr. purchased the Massachusetts Central Railroad for an undisclosed amount in 2008. 

MCER’s line consists mostly of one first built as the Ware River Railroad in 1868, according to Trains.com, with the line previously serving as part of the former New York Central System’s Boston & Albany network.  

MCER owns 1.5 miles of the line’s right-of-way, while the state owns 23.5 miles. MCER operates the line under an agreement with the Massachusetts Department of Transportation, according to MassDOT’s 2018 State Rail Plan. 

MCER is headquartered in Palmer, where its yard and intermodal facilities are located. The line interchanges there with CSX and the New England Central Railroad.

The line is used to move waste, chemicals & plastics, and lumber products, with MCER providing freight-hauling, storage, and transloading services.

Regional Rail’s track record in managing short-line railroads made it the right long-term partner for MCER, said David Roy, general manager of Massachusetts Central and Wildwood Reload.

Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.