The steelmaker said on Tuesday that its deal with Fortress Transportation and Infrastructure Investors LLC includes the six operating railroads that make up Transtar LLC: Gary Railway Co. in Indiana; Lake Terminal Railroad Co. in Ohio; Union Railroad Co. in Pennsylvania; Fairfield Southern Co. Inc. in Alabama; Delray Connecting Railroad Co. in Michigan; and Texas & Northern Railroad Co. in Texas.

“By selling Transtar to an experienced railroad operator, U. S. Steel can better focus on our broader ‘Best for All strategy,’” said David B. Burritt, U. S. Steel president and chief executive. 

“By monetizing our railroad assets at an implied multiple well above our existing valuation, we create immediate value for our stockholders. In addition, the strong partnership we have created with Fortress Transportation will ensure continued support of our steelmaking facilities with predictable and cost-effective railroad operations,” he added. 

As part of the deal, U. S. Steel has signed a 15-year agreement under which Transtar will continue to serve U. S. Steel operations.