A multi-national investment group has purchased a company that invests heavily in multiple Southeast Alaska businesses, including Skagway’s White Pass and Yukon Route Railroad, and Survey Point Holdings in Ketchikan.
Last week a $2.5 billion deal was reached for Blackstone Infrastructure Partners to purchase Carrix. While that sounds like a global Wall Street deal, it’s could affect some key players in Southeast Alaska’s port and tourism trades.
In 2018 Carrix’ railroad company Rail Management Services teamed up with Holland America Princess Tours, a subsidiary of Carnival Cruise Lines, and Ketchikan-based Survey Point Holdings to purchase the White Pass and Yukon Route Railroad from a Canadian golf course company for just under $300 million.
The group named Bob Berto as president of the railroad. He and his family split 50% of Survey Point Holdings, while Carrix owns the other half. Details of the investment partnership that purchased White Pass aren’t public record. But Carrix is a major investor and its shares will now be controlled by Blackstone.
Meanwhile, there’s a new chairman of the board at Carrix, Blackstone senior managing director Sebastian Sherman. Blackstone was founded by CEO Steven Schwarzman who is on the Forbes list of the world’s wealthiest people ranking at #79. And the company he controls has a controversial past when it comes to investments in housing and in medicine.
Skagway Mayor Andrew Cremata says he has questions about what Blackstone’s investment could mean for Skagway’s largest private employer.
“What’s their attitude toward White Pass? Is it in their wheelhouse? Is it an asset as a tourist attraction that they’re interested in? Since they’re not going to be in control of the waterfront post-2023 and the uplands, how are they going to react to that asset? What are their future plans for the asset? To maintain it as a tourist railroad and maintain its historical significance as a narrow-gauge railway? Or are they going to come in and turn it into, you know, standard gauge rail that’s shipping stuff to and from the Yukon?” Wondered Cremata.
But Blackstone was already a 20% investor in Carrix. They are now buying out the remaining shares held by the Smith and Hemingway families who started the company back around 1950.
Skagway’s Chair of the Ports and Harbors Committee Tom Cochran says he doesn’t think big changes coming.
“Carrix has been pretty silent the whole time anyway, ever since the purchase of the railroad. They’ve never really, you know, made their presence known that I’m aware of, unless maybe they did with the elected officials. But, you know, it’s always been kind of a Bob Berto/Survey Point Holdings show. They’re, you know, they’re obviously the public face,” said Cochran.
Calls to Survey Point Holdings and Blackstone on Monday and Tuesday weren’t returned. However, White Pass representatives released a statement saying:
“Blackstone has a long history of solid investment and development in infrastructure and operating companies. They have had involvement with Carrix for some years and we are excited to move forward with them as larger partners. Survey Point Holdings will continue to be the managing partner for WP&YR, and we are hopeful for a robust 2022 season.”
The deal is expected to close next April.
This purchase includes The Carcross Hotel and Carcross Commons… upsetting CTFN… Northern Vision Development(NVD) & Klondike Holdings Win Over Again… !!