Big American to gain Freightliner Group’s coal and containerised grain cargoes
The Australian rail freight market is to experience some consolidation with US-headquartered global operator Genesee & Wyoming (G&W) to buy the British international rail firm Freightliner Group for the equivalent of $962 million.
In Australia, Freightliner, currently transports coal and containerised agricultural products in New South Wales and is also an accredited rail service provider in Western Australia, South Australia and Queensland.
On its impact here, G&W president and CEO Jack Hellmann says “the overlap of our respective rail businesses in Australia and the Netherlands will unlock operating synergies and expand our presence in each of those markets”.
Hellmann underlines the importance of this aspect for his firm worldwide, placing the Australian context as second to that of it preponderant US operations.
The bolstered Australian arm “is expected to contribute approximately 12 per cent of annual pro forma operating income, where our above-rail and below-rail operations in South Australia and the Northern Territory will be combined with Freightliner’s above-rail business in New South Wale,” he states.
Freightliner’s Australian business, with customers including Xtrata and Namoi Cotton, totals about 10 per cent of annual income and the deal is expected to be completed in the coming weeks.