1 week Ago By Kevin Fee
GRAND FORKS — In a significant move for the railcar maintenance industry, Cypress Rail Solutions, a portfolio company of Fargo-based LongWater, has announced the acquisition of certain railcar maintenance assets from Northern Plains Rail Services (NPRS). The deal includes facilities in Erskine, Minn., Randolph, Minn.
, and Grand Forks, as well as several Mobile Repair Units (MRUs). This marks the first step into the railcar maintenance space for LongWater, an alternative asset management firm with a reputation for strategic acquisitions in the Midwest. ADVERTISEMENT Brooks Burgum, co-founder of LongWater, said the recent acquisition is just the beginning for Cypress Rail Solutions.
“We’re excited about the opportunities ahead,” Burgum said. “This is our first step into railcar maintenance, and we’ve built a team with extensive experience in the sector.’’ LongWater’s managing director, Neil West, is a veteran of the rail industry, where he spent more than two decades specializing in railcar maintenance and services.
Burgum emphasized the value of this expertise. “With Neil’s leadership, we’re confident we can add value to the railcar maintenance industry, particularly in regions that have high traffic but limited servicing options,” he said. The acquisition from NPRS focuses on certain assets of its Total Trans Care division, which specializes in railcar maintenance.
Cypress will focus on providing comprehensive maintenance services, including the MRUs that can serve customers within a 200-mile radius. “Beyond the facilities in Grand Forks and Erskine, our mobile units will allow us to bring maintenance services directly to our customers,” Burgum said. “We’re excited to offer full-service solutions, whether it’s in North Dakota, Minnesota, or other areas with a high volume of rail traffic but limited maintenance support.
” Cypress Rail Solutions aims to fill a gap in the market by bringing maintenance services to underserved areas. With a strong leadership team that includes industry veterans Brian Trammell and Randy Meyer, Cypress is well-positioned to deliver high-quality railcar services. ADVERTISEMENT As Cypress Rail Solutions continues to expand, LongWater’s strategic entry into the rail sector marks the beginning of a larger vision.
With plans for additional acquisitions, Cypress is poised to become a significant player in the railcar maintenance industry. Dan Mack, executive vice president and chief marketing officer of Northern Plains Railroad Services, said the company will keep its maintenance shop in Fordville, N.D.
Meanwhile, Cypress will focus on others' railcar maintenance needs. “That industry is pretty varied, and made up of a number of car owners, whether they are lessors or the actual shippers of product in private railcars,” Mack said. “From our standpoint, we’re supportive of the sale to Cypress.
They have also hired a large number of our former employees, so a lot of our employees have become Cypress Rail employees.”.
