Genesee & Wyoming
NYSE: GWR (Class A)|
S&P 400 Component
|Industry||Short line and regional railroad freight|
|Founder||Edward Laton Fuller|
|Headquarters||Darien, Connecticut, United States|
|United States, Canada, Mexico, Bolivia, Australia, Netherlands, United Kingdom, Poland, Germany|
|John C. Hellmann, President and CEO|
|Revenue||US$ 1.639 billion (2014)|
|US$ 261.0 million|
The Genesee & Wyoming Inc. (G&W) is an American short line railroad holding company, that owns or maintains an interest in 120 railroads throughout five countries, the United States, Canada, Australia, Belgium, Netherlands and the United Kingdom. It operates more than 15,500 miles (24,900 km) of owned and leased track, with more than 3,300 miles (5,300 km) under track-access arrangements. The company had its roots in the Class III Genesee and Wyoming Railroad, which began in 1899.
The Genesee and Wyoming Railroad was the predecessor to the G&W; Edward L. Fuller purchased it out of a bankruptcy in 1899. At that time, the railroad was operating as a 14.5-mile long (23.3 km) single-track line serving a single customer, a salt mine owned by Fuller in Retsof, NY. It was still operating the same line for the salt mine when Mortimer B. Fuller III, great grandson of Edward L. Fuller, purchased the railroad in 1977. The holding company, Genesee & Wyoming Railroad Inc., was organized during the same year, and the railroad became its subsidiary.
With deregulation of the rail industry by the Staggers Rail Act of 1980, railroads began disposing of unprofitable routes. Genesee & Wyoming acquired several of these short line railroads, scattered across the United States, from 1985 to 1996. Its acquisitions began including railroads in other countries in 1997.
In October 2000 Australian Railroad Group, a 50/50 joint venture between Genesee & Wyoming and Wesfarmers, were the successful bidder for the Westrail freight business in Western Australia. As part of the joint venture agreement, ownership of Australian Southern Railroad passed to Australian Railroad Group.
In July 2003, the Carolina Coastal Railway, operated by G&W subsidiary Rail Link, Inc., was sold to Main Line Rail Management, Inc.
On May 26, 2005, G&W announced that it has agreed to purchase the railroad operations of Rail Management Corporation (RMC). G&W paid $243 million in cash and assume $1.7 million in company debt to gain control of 14 short line railroads from RMC across the southeastern United States, as of June 1, 2005.
As of the close of 2005, Genesee and Wyoming had 2,330 employees in North America. That year, Hurricane Stan wiped out several miles of Genesee & Wyoming track in Mexico. In 2006, the Mexican government agreed to pay 75 percent of the rebuilding costs, or $15 million, to reconstruct the track.
In June 2006 the Australian Railroad Group joint venture was broken up with the Western Australian above rail operation sold to QR National and the below rail infrastructure to Babcock & Brown in a $974 million (A$1.55 billion) deal. At the same time Wesfarmers sold its 50% share in the South Australian operation back to Genesee & Wyoming Inc for $15 million (A$22 million). The operation was rebranded Genesee & Wyoming Australia.
Also in 2006, Genesee & Wyoming elected to write off most of the value of its Bolivian operation, on fears that the Bolivian government would soon nationalize privately held railroads there. Genesee & Wyoming remains an investor in Empresa Ferroviaria Oriental, S.A.
In June 2010 Genesee & Wyoming, through a subsidiary holding company, paid A$334 million to acquire the operational rights to and the leasehold of the Tarcoola to Darwin Railway from the Asia Pacific Transport Consortium, and the operational rolling stock of FreightLink. This 1,400 miles (2,300 km) rail line was the longest the company has leased.
On 2 August 2011, Genesee & Wyoming announced that it planned to purchase the Arizona Eastern Railway from Iowa Pacific Holdings for US$90.1 million, with the deal expected to be completed by the end of the year. The deal was closed on 1 September 2011.
On July 23, 2012, Genesee & Wyoming agreed to purchase RailAmerica Inc. (RA), the short-line railroad holding company controlled by Fortress Investment Group LLC (FIG), for $1.39 billion to combine North America’s two largest short-line and regional rail operators.
On August 15, 2016, Genesee & Wyoming announced that intended to acquire the Providence & Worcester Railroad, which operates in Massachusetts, Rhode Island, Connecticut, and New York, for $126 million. The deal was approved by Providence & Worcester shareholders in October, and the Surface Transportation Board approved the acquisition in December.
Subsidiaries and holdings
Genesee & Wyoming Inc. owns controlling interests in 122 freight railroads, either directly or through subsidiaries, which are organized into 11 operating regions. These subsidiaries include Rail Link, Inc. (1996), Genesee & Wyoming Canada, Inc. (1997), Emons Railroad Group (2002), CAGY Industries (2008), and Summit View, Inc. (2008). In 2005 G&W acquired the properties formerly owned by the Rail Management Corporation.
Rail Link, Inc. (reporting mark RLIX), a subsidiary of Genesee & Wyoming Inc., provides industrial switching and related customer logistics services. Rail Link, headquartered in Jacksonville, Florida, serves industrial customers at 30 locations in 11 states and operates 26 short line railroads (including the Commonwealth Railway, and Yorkrail). Rail Link railroads serve 10 major U.S. ports.
- "Form 10-K 2014". Securities and Exchange Commission. Retrieved 22 May 2015.
- "About Us". Genesee & Wyoming, Inc. Retrieved August 11, 2011.
- "Our History – Genessee & Wyoming Inc". Retrieved August 11, 2011.
- "An Sale: Private Owners Go From Zero to Three" Railway Digest October 1997 page 8
- "Australian Railroad Group buys Westrail freight" Railway Digest October 2000 page 23
- Company History Wesfarmers
- Genesee & Wyoming, Inc. (May 26, 2005), Genesee & Wyoming Announces Agreement to Acquire Short Line and Port Railroads from Rail Management Corporation Archived October 17, 2005, at the Wayback Machine.. Retrieved May 27, 2005.
- Trains News Wire (May 26, 2005), G&W to acquire Rail Management Corp. rail operations[permanent dead link]. Retrieved May 27, 2005.
- Sale of Australian Railroad Group Wesfarmers February 14, 2006
- "Genesee & Wyoming Agrees to Sell Western Australia Operations and Certain Other Assets of the Australian Railroad Group for A$1.3 Billion (US$956 million)" (Press release). Genesee & Wyoming, Inc. February 13, 2006. Archived from the original on July 12, 2012. Retrieved 2006-02-14.
- "Genesee & Wyoming Inc. Annual Report 2006" (PDF). Retrieved 2 August 2012.
- "Empresa Ferroviaria Oriental, S.A." Genesee & Wyoming. Retrieved 2 August 2012.
- "Adelaide-Darwin railway sold to US company". ABC News. June 10, 2010. Retrieved August 11, 2011.
- "FreightLink-owned Adelaide-Darwin railway to be sold to US company Genesee & Wyoming". Adelaide Now. The Advertiser. June 9, 2010. Retrieved August 11, 2011.
- "Genesee & Wyoming Inc to acquire Arizona Eastern Railway". Rail.co. 2 August 2011. Archived from the original on 3 August 2011. Retrieved 3 August 2011.
- "Genesee & Wyoming completes Arizona Eastern acquisition". Progressive Railroading. 6 September 2011. Retrieved 7 September 2011.
- Bloomberg, https://www.bloomberg.com/news/2012-07-23/genesee-wyoming-agrees-to-buy-railamerica-for-1-39-billion.html
- Associated Press (July 23, 2012). "Genesee & Wyoming to pay $1.39B for RailAmerica". STL Today.com. Retrieved July 23, 2012.[permanent dead link]
- "UPDATE 4-Genesee & Wyoming to buy RailAmerica for $1.4 billion". Reuters. July 23, 2012. Retrieved July 23, 2012.
- Bloomberg (February 24, 2015). "Genesee & Wyoming Inc. Enters into Agreement to Acquire Freightliner Group Limited; Expands Rail Operations in the United Kingdom, Continental Europe and Australia". Retrieved February 25, 2015.
- "UPDATE: Genesee & Wyoming to buy Providence & Worcester". Trains Magazine. August 15, 2016. Retrieved February 8, 2017.
- "STB approves Genesee & Wyoming purchase of Providence & Worcester". Trains Magazine. December 19, 2017. Retrieved February 8, 2017.
- "Genesee & Wyoming to acquire Heart of Georgia Railroad". Trains Magazine. February 7, 2017. Retrieved February 8, 2017.