Genesee & Wyoming and SEACOR Form Joint Venture to Own and Operate Rail Ferry Service, CG Railway, Between the U.S. and Mexico
September 05 2017 - 6:30AM
Business Wire
Genesee & Wyoming Inc. (G&W) (NYSE:GWR) and SEACOR
Holdings Inc. (SEACOR) (NYSE:CKH) today announced the formation of
a 50/50 joint venture to own and operate CG Railway, LLC (CGR), a
subsidiary of SEACOR recently acquired through its acquisition of
International Shipholding Corporation. Terms of the joint venture
were not disclosed.
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Genesee & Wyoming and SEACOR have
announced a joint venture to own and operate a rail ferry service,
CG Railway, between the U.S. and Mexico. (Photo: Business Wire)
CGR operates a freight railroad providing four-day rail ferry
service between the ports of Mobile, Alabama, and Coatzacoalcos,
Veracruz. The rail ferry presents a faster and more cost-effective
alternative to the traditional land route between the southeast
U.S. and southeast Mexico. The joint venture plans to immediately
invest in the existing rail ferry vessels to enhance service
reliability.
Established in 2001, the ferry service currently transports
approximately 10,000 annual carloads of commodities such as
chemicals & plastics, fructose & refined sugar, steel and
pulp & paper.
The CGR business is comprised of:
- a U.S. Class III freight railroad that
connects in Mobile with G&W’s Alabama & Gulf Coast Railway
(AGR), BNSF (via AGR), Canadian National (CN), CSX, Kansas City
Southern (via CN) and Norfolk Southern and connects in
Coatzacoalcos with Ferrosur, the railroad serving central and
southern Mexico;
- two 585’ roll-on/roll-off rail ferries,
each with the capacity to transport approximately 115 railcars per
voyage;
- Long-term agreements to operate
purpose-built rail ferry terminals in the ports of Mobile and
Coatzacoalcos;
- a 10,000-square-foot, food-grade,
truck-to-rail transload facility and a railcar repair shop both
located in Mobile.
“We are committed to improve the rail ferry’s on-time
performance by leveraging SEACOR’s expertise in marine operations,”
says CGR Senior Vice President Kevin Wild. “Combining reliable
service with the cost efficiency of short sea shipping and the 50%
shorter transit time versus land routes, we create a compelling
alternative for customers moving goods between the eastern U.S. and
Canada to and from central and southern Mexico.”
“CGR creates a natural extension of our rail services to reach
the rapidly growing market in central and southern Mexico,” says
G&W Chief Commercial Officer Michael Miller. “We look forward
to working with Ferrosur and Ferromex to expand the current
customer base. Since G&W’s short line railroads maintain close
commercial relationships with customers and connecting Class I
railroads across the southeastern U.S., we also look forward to
offering a more direct option for these shippers and others east of
the Mississippi to reach central and southern Mexico.”
About Genesee & Wyoming Inc.
G&W owns or leases 122 freight railroads worldwide that are
organized in 10 operating regions with approximately 8,000
employees and 3,000 customers.
- G&W’s eight North American regions
serve 41 U.S. states and four Canadian provinces and include 115
short line and regional freight railroads with more than 13,000
track-miles.
- G&W’s Australia Region provides
rail freight services in New South Wales, including in the Hunter
Valley coal supply chain, the Northern Territory and South
Australia, and operates the 1,400-mile Tarcoola-to-Darwin rail
line. The Australia Region is 51.1% owned by G&W and 48.9%
owned by a consortium of funds and clients managed by Macquarie
Infrastructure and Real Assets.
- G&W’s U.K./Europe Region is led by
Freightliner, the U.K.’s largest rail maritime intermodal operator
and second-largest rail freight company. Operations also include
heavy-haul in Poland and Germany, intermodal services connecting
Northern European seaports with key industrial regions in Germany,
and regional rail services in the Netherlands and Belgium.
G&W subsidiaries provide rail service at more than 40 major
ports in North America, Australia and Europe and perform contract
coal loading and railcar switching for industrial customers.
About SEACOR Holdings Inc.
SEACOR Holdings Inc. (NYSE: CKH) headquartered in Fort
Lauderdale, Florida is a diversified holding company principally
focused on domestic and international transportation, logistics,
and risk management consultancy.
- Through its shipping services
businesses, SEACOR owns marine equipment operating coastwise
in the U.S. transporting bulk liquids and dry cargo; operates
vessels that support the movement of U.S. food aid and military
cargo globally; and offers customers turnkey logistics solutions to
move goods and materials from Florida into the Caribbean on a fleet
of shallow draft vessels. SEACOR’s tug fleet assists vessels
docking in U.S. ports and the Caribbean and provides offshore
towing services.
- SEACOR’s inland river services
businesses own and operate a fleet of domestic dry cargo barges,
towboats, and infrastructure throughout the Mississippi River
System and offers customers integrated services such as fleeting,
storage, throughput, and elevation. SEACOR also provides
inland river services in Latin America.
- CLEANCOR, a SEACOR subsidiary,
distributes alternative energy solutions to end-customers looking
to adopt fuels that have a favorable environmental footprint and
the potential to economically displace legacy petroleum-based
fuels.
SEACOR’s consulting business, Witt O’Brien’s, offers a full
range of crisis and emergency management solutions to help private
and public organizations prepare, respond, and recover
before and after catastrophic events. This includes unrivalled
experience recovering from manmade and natural disasters including
Hurricanes Harvey, Katrina, Rita, Ike, and the Deepwater Horizon
explosion in the Gulf of Mexico.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
Genesee & Wyoming's and SEACOR’s businesses which are not
historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk
Factors" in each company’s Annual Report on Form 10-K for the most
recently ended fiscal year.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170905005492/en/
G&W Corporate CommunicationsMichael Williams,
1-203-202-8900http://www.gwrr.comorSEACOR Investor RelationsMolly
Hottinger, 1-954-627-5278http://www.seacorholdings.com
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