GWA completes GRail acquisition

Genesee & Wyoming Australia (GWA) has completed the acquisition of Glencore Rail (GRail) for A$1.14 billion (US$847 million)
GWA completes GRail acquisition GWA completes GRail acquisition GWA completes GRail acquisition GWA completes GRail acquisition GWA completes GRail acquisition

Staff reporter

It has also concurrently issued a 49% equity stake in GWA to funds and clients managed by Macquarie Infrastructure and Real Assets (MIRA). 

In conjunction with the acquisition of the GRail business, which includes nine train sets (30 locomotives and 894 wagons), a long-term, take-or-pay contract with Glencore Coal (GC) has been entered into, subject to existing agreements and certain limitations, to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley in New South Wales to the Port of Newcastle.

GWA stated that the acquisition strengthens its nationwide footprint in Australia, adding a significant presence in the Hunter Valley coal supply chain and complementing GWA’s existing intermodal, agricultural and mining business in South Australia and the Northern Territory.