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Notice2026-18530

Fortress Investment Group LLC, et al.-Intra-Corporate Family Transaction Exemption

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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
September 11, 2026

Issuing agencies

Surface Transportation Board

Full Text

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<title>Federal Register, Volume 91 Issue 175 (Friday, September 11, 2026)</title>
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[Federal Register Volume 91, Number 175 (Friday, September 11, 2026)]
[Notices]
[Pages 57952-57953]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18530]


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SURFACE TRANSPORTATION BOARD

[Docket No. FD 36951]


Fortress Investment Group LLC, et al.--Intra-Corporate Family 
Transaction Exemption

    Fortress Investment Group LLC (Fortress), a noncarrier, for the 
benefit of FTAI Infrastructure Inc. (FTAI), which directly or 
indirectly controls Percy Acquisition LLC, which has changed its name 
to Transtar Holdings LLC (Transtar Holdings), FIP RR Holding Company 
LLC (FIPRR HoldCo), FIP RR Holdings LLC (FIPRR Holdings), FIP RR 1 LLC, 
and FIP RR 2 LLC (FIPRR2) (collectively, Fortress Parties), has filed a 
verified notice of exemption for an

[[Page 57953]]

intra-corporate family transaction under 49 CFR 1180.2(d)(3).
    According to the verified notice, FIPRR2 currently has direct 
control of The Wheeling Corporation (Wheeling Corp.), a noncarrier that 
has two rail carrier subsidiaries: Wheeling & Lake Erie Railway (W&LE), 
a Class II carrier, and Akron Barberton Cluster Railway Company (ABC), 
a Class III carrier. Further, FIPRR2 currently has direct control of 
Transtar, LLC, which has changed its name to The Wheeling Holding 
Company LLC (Wheeling HoldCo), and which controls six Class III rail 
carriers: (1) Union Railroad Company, LLC; (2) Gary Railway Company, 
LLC; (3) Delray Connecting Railroad Company; (4) Texas & Northern 
Railway Company, LLC; (5) The Lake Terminal Railroad Company, LLC; and 
(6) East Ohio Valley Railway LLC.\1\
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    \1\ Wheeling HoldCo also controls a private switching railroad, 
Fairfield Southern Company LLC, and an equipment leasing 
corporation, Birmingham Southern Railroad.
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    According to the verified notice, the proposed transaction will 
transfer direct control of Wheeling Corp. (which owns and control W&LE 
and ABC) from FIPRR2 to Wheeling HoldCo. Fortress will continue to 
manage FTAI, which will continue to indirectly control FIPRR2 as 
follows: FTAI will continue to control Transtar Holdings, which will 
continue to control FIPRR HoldCo, which will continue to control FIPRR 
Holdings, which will continue to control FIPRR2, which will continue to 
control Wheeling HoldCo, which will then control Wheeling Corp. 
Fortress Parties state that the proposed transfer will promote 
management and operational efficiencies by placing all of the operating 
railroads within the corporate family under the direct control of 
Wheeling HoldCo. A draft copy of the resolution governing the proposed 
transaction was submitted with the verified notice as Exhibit B.
    Fortress Parties state that the proposed transaction does not 
include an interchange commitment under 49 CFR 1180.4(g). The verified 
notice states that the proposed transaction will not result in adverse 
changes in service levels, significant operational changes, or a change 
in the competitive balance with carriers outside the corporate family. 
Therefore, the transaction is exempt from the prior approval 
requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(3).
    Unless stayed, the exemption will be effective on September 27, 
2026 (30 days after the verified notice was filed). The verified notice 
states that Fortress Parties intend to consummate the proposed 
transaction on or after the effective date of the exemption.
    Under 49 U.S.C. 10502(g), the Board may not use its exemption 
authority to relieve a rail carrier of its statutory obligation to 
protect the interests of its employees. Because the transaction 
involves the control of one Class II and one or more Class III rail 
carriers, the transaction is subject to the labor protection 
requirements of 49 U.S.C. 11326(b) and Wisconsin Central Ltd.--
Acquisition Exemption--Lines of Union Pacific Railroad, 2 S.T.B. 218 
(1997).
    If the verified notice contains false or misleading information, 
the exemption is void ab initio. Petitions to revoke the exemption 
under 49 U.S.C. 10502(d) may be filed at any time. The filing of a 
petition to revoke will not automatically stay the effectiveness of the 
exemption. Petitions for stay must be filed no later than September 18, 
2026 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36951, must be filed with 
the Surface Transportation Board via e-filing on the Board's website or 
in writing addressed to 395 E Street SW, Washington, DC 20423-0001. In 
addition, one copy of each pleading must be served on Fortress Parties' 
representative, Williams A. Mullins, Mullins Law Group PLLC, 2001 L 
Street NW, Suite 720, Washington, DC 20036.
    According to Fortress Parties, this action is categorically 
excluded from environmental review under 49 CFR 1105.6(c) and historic 
reporting under 49 CFR 1105.8(b).
    Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.

    Decided: September 8, 2026.

    By the Board, Anika S. Cooper, Chief Counsel, Office of Chief 
Counsel.
Zantori Dickerson,
Clearance Clerk.
[FR Doc. 2026-18530 Filed 9-10-26; 8:45 am]
BILLING CODE 4915-01-P


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Indexed from Federal Register on September 11, 2026.

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