Macquarie Infrastructure Partners V GP, LLC, et al.-Control Exemption-Kankakee, Beaverville and Southern Railroad Company

Issuing agencies

Full Text

<html>
<head>
<title>Federal Register, Volume 91 Issue 190 (Friday, October 2, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 190 (Friday, October 2, 2026)]
[Notices]
[Pages 62803-62804]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20205]


-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. FD 36957]


Macquarie Infrastructure Partners V GP, LLC, et al.--Control 
Exemption--Kankakee, Beaverville and Southern Railroad Company

    Macquarie Infrastructure Partners V GP, LLC (MIP GP), a noncarrier, 
filed for the benefit of the MIP Infrastructure Partners V fund vehicle 
(MIP V), MIP V Rail, LP (MIP Rail), Pinsly Holdco, LLC, and Pinsly 
Railroad Company, LLC (Pinsly),\1\ a verified notice of exemption under 
49 CFR 1180.2(d)(2) to acquire control of Kankakee, Beaverville and 
Southern Railroad Company (KBSR),\2\ a Class III common carrier freight 
railroad. KBSR is currently controlled by Vicki L. Stroo Living Trust, 
Vicki L. Stroo, Tyler A. Stroo, and Neil A. Stroo (collectively, the 
Stroo Family).
---------------------------------------------------------------------------

    \1\ The verified notice states that Pinsly is wholly owned by 
Pinsly Holdco, LLC, which is wholly owned by MIP Rail, which in turn 
is wholly owned (indirectly) by MIP V. MIP V is controlled by MIP 
GP.
    \2\ KBSR operates approximately 159.7 miles of track in Illinois 
and Indiana comprised of: (1) the Lafayette Subdivision consisting 
of 74.6<plus-minus> miles between Kankakee, Ill., and Lafayette, 
Ind.; (2) the Danville Subdivision consisting of 57.4<plus-minus> 
miles between Hooper and Danville, Ill.; (3) the Boswell Subdivision 
consisting of 20.7<plus-minus> miles between Cheneyville, Ill. and 
Templeton, Ind.; and (4) a 7.0<plus-minus> mile spur between Sheff 
and Free, Ind. KBSR also operates as a contract carrier over 
approximately 9.5 miles owned by the Bee Line Railroad Company 
between Handy and Stewart, Ind.
---------------------------------------------------------------------------

    The verified notice states that, pursuant to a Purchase Agreement 
dated September 16, 2026,\3\ Pinsly has agreed to acquire 100% of the 
equity interests of KBSR from the Stroo Family. Currently, Pinsly 
directly controls, and MIP GP, MIP V, and MIP Rail indirectly control, 
nine rail carriers: Grenada Railroad, LLC; Florida Gulf & Atlantic 
Railroad, LLC; Camp Chase Rail, LLC; Chesapeake and Indiana Railroad, 
LLC; Vermilion Valley Railroad Company LLC; Pioneer Valley Railroad 
Company, LLC; Hondo Railway LLC; North Florida Industrial Railroad, 
LLC; and Georgiana & Andalusia Railroad, LLC.
---------------------------------------------------------------------------

    \3\ Public and confidential versions of the Purchase Agreement 
were filed with the verified notice. The confidential version was 
submitted under seal concurrently with a motion for protective 
order, which is addressed in a separate decision.
---------------------------------------------------------------------------

    MIP GP states that: (1) KBSR does not connect with any of the 
railroads that would be in the same corporate family following the 
transaction; (2) the proposed transaction is not part of a series of 
anticipated transactions that would connect KBSR with any railroad in 
its corporate family; and (3) the transaction does not involve a Class 
I rail carrier. Therefore, the proposed transaction is exempt from the 
prior

[[Page 62804]]

approval requirements of 49 U.S.C. 11323. See 49 CFR 1180.2(d)(2).
    The earliest this transaction may be consummated is October 17, 
2026, the effective date of the exemption (30 days after the verified 
notice was filed).
    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. However, 49 U.S.C. 11326(c) 
does not provide for labor protection for transactions under 49 U.S.C. 
11324 and 11325 that involve only Class III rail carriers. Because this 
transaction involves Class III rail carriers only, the Board, under the 
statute, may not impose labor protective conditions for this 
transaction.
    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 to stay must be filed no later than October 9, 
2026 (at least seven days before the exemption becomes effective).
    All pleadings, referring to Docket No. FD 36957, should 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, a copy of each pleading must be served on MIP 
GP's representative, Terence M. Hynes, Sidley Austin LLP, 1501 K Street 
NW, Washington, DC 20005.
    According to MIP GP, this action is categorically excluded from 
environmental review under 49 CFR 1105.6(c) and from historic 
preservation reporting requirements under 49 CFR 1105.8(b).
    Board decisions and notices are available at <a href="http://www.stb.gov">www.stb.gov</a>.

    Decided:

    By the Board, Anika S. Cooper, Chief Counsel, Office of Chief 
Counsel.
Regena Smith-Bernard,
Clearance Clerk.
[FR Doc. 2026-20205 Filed 10-1-26; 8:45 am]
BILLING CODE 4915-01-P


</pre></body>
</html>