Thursday, December 01, 2016

GWI completes acquisition of Australia’s GRail

GWI completes acquisition of Australia’s GRail Mark Carter

Genesee & Wyoming Inc. (GWI) announced Dec. 1 that Genesee & Wyoming Australia (GWA) has acquired Glencore Rail (GRail) for A$1.14 billion (US$844.9 million) and issued a 49-percent equity stake in GWA for clients and funds handled by Macquarie Infrastructure and Real Assets.

 

 

 

Representatives say GWA’s acquisition of GRail includes nine train sets, totaling at 30 locomotives and 894 wagons. A long-term, take-or-pay contract with Glencore Coal Pty Limited (GC) has been entered—and is subject to pre-existing agreements—to exclusively haul all coal originating from GC mines to the Port of Newcastle from the Hunter Valley.

GWA says the acquisition will bolster its national presence in Australia by establishing a significant footprint within the Hunter Valley coal supply chain.

GWI currently leases or owns a total of 121 freight railroads worldwide throughout 10 operating regions, employing about 7,200 people and serving more than 2,800 customers, the company noted.