G&W to sell stake in Australian operations as it goes private

Trains Industry Newsletter
Get a weekly roundup of the industry news you need.
By signing up you may also receive occasional reader surveys and special offers from Trains magazine. View our privacy policy.
GW
TORONTO — Genesee & Wyoming is pulling out of Australia.

The short line holding company is selling its 51% stake in its Australia operations, which serves New South Wales, the Northern Territory, and South Australia, including the 1,400-mile Tarcoola to Darwin rail line.

The move comes as G&W is being taken private in an $8.4-billion deal led by Brookfield Infrastructure Partners.

G&W is selling its stake to its Australian partner, Macquarie Infrastructure and Real Assets, which held a 48.9% share of the partnership.

The transaction is expected to close by the end of the year, subject to regulatory approval, alongside Brookfield’s acquisition of G&W, Brookfield executives said during the company’s second quarter earnings call on Friday morning.

Brookfield says the company aims to maximize commercial opportunities on G&W lines, continue to expand through acquisitions, and improve profit margins on G&W’s current railroads through a combination of revenue growth and cost-cutting.

G&W operates 120 railroads in North America and also has operations in Europe.

G&W Australia provides intermodal service six days per week on the Adelaide-to-Darwin corridor as well as intrastate haulage of bulk commodities including grain, steel and minerals, and hauls coal in New South Wales.

The Australian operations contributed about 10% of G&W’s overall operating income. Coal generated 42% of Australian revenue, followed by intermodal at 23%, and metallic ores at 21%.

G&W’s Australian operations date to 1997, when it privatized the Australia Southern Railroad. In 2000, the Australian Railroad Group was formed in a 50% venture with a partner, which G&W subsequently purchased six years later.

G&W acquired the Tarcoola to Darwin line in 2009, which at the time was the company’s largest acquisition to date.

NEWSWIRETrains News Wire

  • Previous Day
  • August 02, 2019
  • Next Day
Leave a Comment
Want to leave a comment?
Only registered members of TrainsMag.com are allowed to leave comments. Registration is FREE and only takes a couple minutes.

Login or Register now.
Please keep your feedback on-topic and respectful. Trains staffers reserve the right to edit or delete any comments.
0 COMMENTS
FREE DOWNLOAD

FREE DOWNLOAD

The beauty and complexity of trains in the snow.

SEE INSIDE THIS ISSUE

Learn more about the stories and photos in this months issue

Newsletter Sign-Up

By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy
Subscribe Up To 54% off the newsstand price!
Subscribe To Trains Mag Today
+