Genesee & Wyoming Australia acquires GRail, issues 49 percent equity stake

12/1/2016    

Rail News: Short Lines & Regionals

Genesee & Wyoming Inc. (G&W) announced today that Genesee & Wyoming Australia (GWA) has completed its acquisition of Glencore Rail (GRail) for 1.14 billion Australian dollars, and concurrently issued a 49 percent equity stake in GWA to funds and clients managed by Macquarie Infrastructure and Real Assets.

In conjunction with the acquisition, a long-term, take-or-pay contract with Glencore Coal Pty Ltd. has been obtained to haul all coal produced at Glencore Coal's existing mines in the Hunter Valley to the Port of Newcastle, according to a G&W press release. That agreement is subject to existing agreements and certain limitations.

The acquisition, which includes nine train sets, will strengthen GWA's footprint in Australia, add a significant presence in the Hunter Valley coal supply chain and complement GWA's existing intermodal, agricultural and mining business in South Australia and the Northern Territory, G&W officials said.

Keywords