G&W Australia closes on $856m acquisition of GRail

Concurrent with the deal for Glencore Rail, the Australian subsidiary of short line and regional rail operator Genesee & Wyoming has issued a 49 percent equity stake to funds managed by Macquarie Infrastructure and Real Assets.    Genesee & Wyoming Australia (GWA) has completed its previously announced purchase of Glencore Rail (GRail) for $1.14 billion Australian (U.S. $856 million), the company said in a statement.
   As part of the deal, the Australian subsidiary of short line and regional rail operator Genesee & Wyoming (G&W) has issued a 49 percent equity stake to funds managed by Macquarie Infrastructure and Real Assets (MIRA).
   The acquisition of GRail’s business includes nine train sets (30 locomotives and 894 wagons), as well as a long-term “take-or-pay” contract with Glencore Coal Pty Ltd. (GC), subject to existing agreements and certain limitations, to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley to the Port of Newcastle.
   The purchase strengthens GWA’s 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, the company said.