Rapid City, Pierre & Eastern Railroad Completes Acquisition of Dakota, Minnesota & Eastern West End
May 30 2014 - 4:10PM
Business Wire
Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today announced
that its newly established subsidiary, Rapid City, Pierre &
Eastern Railroad, Inc. (RCP&E) has completed the acquisition of
the west end of the Dakota, Minnesota & Eastern (DM&E) rail
line from Canadian Pacific (TSX:CP)(NYSE:CP) for approximately $210
million plus approximately $7.5 million for the purchase of certain
inventory, equipment and vehicles.
Rapid City, Pierre & Eastern
Railroad, Inc. has completed the acquisition of the west end of the
Dakota, Minnesota & Eastern rail line from Canadian Pacific and
commences freight service June 1. (Photo: Business Wire)
Operations on the 670-mile rail line will shut down this
evening, and the RCP&E will commence freight service on June 1.
The new railroad has 177 employees, most of whom were hired from
the DM&E operations, and expects to hire additional
employees.
“We have the right people, locomotives, equipment and track
infrastructure in place to provide the customer-focused service for
which short line railroads are known,” says Brad Ovitt, RCP&E
president. “Teams are positioned along the route to assist with the
challenges of starting a brand new operation on Sunday. The
RCP&E will be locally managed and operated, which enables
decisions to be made closest to the customer and empowers our
people to resolve issues with the goal of operating safely and
exceeding customer expectations.”
“In the days and weeks ahead, we’ll be creating a fleet of
approximately 50 locomotives and 3,000 railcars dedicated to
RCP&E customers, supplemented by additional railcars from our
connecting Class I railroads, to ensure we have the power and cars
to meet customer needs,” says Todd Bjornstad, RCP&E general
manger. “Through the combination of these resources, our intent is
to increase the level of service provided to customers, which will
increase the flow of traffic over the railroad and, ultimately,
improve customer satisfaction.”
“In addition to growing business with existing customers on the
line, we will be working with all four states that we serve to
attract new businesses and drive more freight traffic to rail,”
says Alicia Martin, head of RCP&E sales. “Through our three
Class I railroad connections, we offer opportunities for RCP&E
customers to reach new markets.”
Customers on the line currently ship approximately 52,000
carloads annually of grain, bentonite clay, ethanol, fertilizer and
other products.
Headquartered in Rapid City, RCP&E operates northwest to
Colony, Wyoming; southwest to Dakota Junction, Nebraska; and east
to Tracy, Minnesota. Mechanical shops are located in Rapid City and
Huron, S.D., with train crew-start/change locations in Rapid City,
Belle Fourche, Pierre, Huron and Brookings, S.D., and Tracy, Minn.
RCP&E interchanges with Class I carriers BNSF, Canadian Pacific
and Union Pacific, as well as short line Nebraska Northwestern.
About Genesee & Wyoming
G&W owns short line and regional freight railroads in the
United States, Australia, Canada, the Netherlands and Belgium. In
addition, G&W Australia operates the 1,400-mile Tarcoola to
Darwin rail line, which links the Port of Darwin with the
interstate rail network in South Australia. Operations currently
include 112 railroads organized in 11 regions, with more than
15,000 miles of owned and leased track, 4,800 employees and over
2,000 customers. G&W subsidiaries provide rail service at 37
ports in North America, Australia and Europe and perform contract
coal loading and railcar switching for industrial customers.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release Genesee &
Wyoming's business 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 the Company's
Annual Report or Form 10-K for the most recently ended fiscal
year.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140530005908/en/
Media:G&W:Michael Williams,
203-202-8900mwilliams@gwrr.comorCanadian Pacific:Ed Greenberg,
612-849-4717ed_greenberg@cpr.ca
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