The business is a full-service rail freight operator providing essential services to customers across a range of sectors, including timber and pulp, intermodal freight and energy. Hector Rail operates a fleet of approximately 100 predominantly electric locomotives across Sweden, Norway and Denmark. It also has a presence in Germany, Europe’s largest freight market, and is one of only a few companies that run rail freight between Sweden and Germany.
Hector Rail has long-standing relationships with a diversified base of blue-chip commercial and industrial customers, and revenues are supported by multi-year contracts with inflation-linked pricing. Rail freight forms an important part of regional supply chains across Northern Europe and is expected to benefit from a supportive policy backdrop and structural trends underpinning the long-term modal shift from road to rail. Additionally, the Fehmarnbelt Tunnel, connecting Denmark to Germany, is due to open in the early 2030s and is projected to strengthen rail connectivity between Scandinavia and continental Europe.
Hector Rail combines a strong position in the Scandinavian rail freight market with clear opportunities for organic growth and active value creation. To meet rising customer demand, planned investment includes additional locomotives and a programme of heavy maintenance and upgrades. InfraRed believes its extensive experience in the rail sector, together with Hector Rail’s established management team, can help accelerate the next phase of the business’s development.
Sean Watson, Partner at InfraRed, said:
“Hector Rail has the attributes that we look for: a well-established, robust business with solid infrastructure credentials. Importantly, there are also extensive opportunities for growth, building on its strong position in Scandinavia and its critical role in customers’ supply chains. We are excited to be working with its exceptional management team and, having built and grown multiple infrastructure assets and businesses in the rail sector, we will draw on that experience to help Hector Rail achieve its potential.”
ENDS
Notes to Editor
About InfraRed Capital Partners (“InfraRed”)
InfraRed is a leading international mid-market infrastructure asset manager. Over the past 25 years, InfraRed has established itself as a highly successful developer and an active steward of essential infrastructure.
InfraRed manages US$13bn of equity capital[1] for investors around the globe in listed and private funds, spanning core to value-add strategies.
InfraRed combines a global reach, operating worldwide from offices in London, New York, Miami, Frankfurt, Madrid, Sydney and Seoul, with deep sector expertise from a team of more than 160 people.
InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life, and benefits from its scale and global platform.
For more information, please visit www.ircp.com.
[1] Uses a 5-year average FX between currency pairs as at 31 March 2026: USD per GBP – 1.2889; USD per EUR – 1.1044. EUM of USD 13.86bn.
