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Genesee & Wyoming reports increased bulk traffic

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Dry Bulk,


G&W’s traffic in July 2017 was 277 140 carloads, an increase of 34 190 carloads, or 14.1%, compared with July 2016.

G&W’s same-railroad traffic in July 2017 was 239 365 carloads, a decrease of 3585 carloads, or 1.5%, compared with July 2016.

July 2017 highlights by segment

  • North American operations: Traffic in July 2017 was 133 822 carloads, an increase of 2.0% compared with July 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on 1 November, 2016, and the Heart of Georgia Railroad, Inc. (HOG), which closed on 31 May, 2017. On a same-railroad basis, North American traffic decreased 1.0%, primarily due to decreased agricultural products traffic, partially offset by increased metals and coal and coke traffic.
  • Australian Operations: Traffic in July 2017 was 52 328 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on 1 December, 2016. On a same-railroad basis, Australian traffic increased 22.4%, primarily due to increased agricultural products and metallic ores traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 48.9% equity stake in its Australian Operations to Macquarie Infrastructure and Real Assets. Carload information for the Australian Operations is presented on a 100% basis.
  • U.K./European Operations: Traffic in July 2017 was 90 990 carloads, a decrease of 5.9% compared with July 2016, primarily due to decreased intermodal and coal and coke traffic, partially offset by increased minerals and stone traffic.

The following highlights relate to North American same-railroad traffic, excluding traffic from P&W, which was acquired on 1 November, 2016, and HOG, which was acquired on 31 May, 2017.

  • Agricultural products traffic decreased 3795 carloads, or 20.0%, primarily due to decreased shipments in G&W’s Mountain West Region due to drought conditions in South Dakota as well as reduced exports of dried distillers’ grains (DDGs) in G&W’s Pacific Region.
  • Metals traffic increased 1067 carloads, or 11.5%, primarily due to increased shipments of finished steel and pipe in G&W’s Northeast Region, partially offset by decreased shipments of scrap and pig iron in G&W’s Southern Region.
  • Coal and coke traffic increased 1043 carloads, or 5.2%, primarily due to increased shipments in G&W’s Midwest Region, partially offset by decreased shipments in G&W’s Northeast and Mountain West regions.
  • All remaining traffic increased by a net 436 carloads.

The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on 1 December, 2016.

  • Agricultural products traffic increased 2179 carloads, or 73.0%, primarily due to a stronger harvest in 2017.
  • Metallic ores traffic increased 1345 carloads, or 69.3%, primarily due to the re-opening of a manganese mine in March 2017.
  • All remaining traffic decreased by a net 139 carloads.
  • Intermodal traffic decreased 5933 carloads, or 7.5%, due to reduced shipments in the U.K. as a result of the expected volume impact from a cyber-attack on a customer’s IT systems and in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS.
  • Coal and coke traffic decreased 1929 carloads, or 67.6%, primarily due to decreased shipments in the U.K.
  • Minerals and stone traffic increased 2219 carloads, or 15.3%, primarily due to increased shipments in Poland.
  • All remaining traffic decreased by a net 78 carloads.
  • Other

    The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units. Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.

Read the article online at: https://www.drybulkmagazine.com/rail-barge/14082017/genesee-wyoming-reports-increased-bulk-traffic/

 

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