Genesse & Wyoming Australia purchases Glencore Rail for $1.14bn

By Dale Benton
Earlier this month, Swiss-based mining giant Glencore announced the sale of its coal haulage railway in Australia. Glencore Rail (GRail) will be sold t...

Earlier this month, Swiss-based mining giant Glencore announced the sale of its coal haulage railway in Australia.

Glencore Rail (GRail) will be sold to the global rail service provider Genesee & Wyoming Australia for a total of A$1.14bn.

As part of the deal, the company will service most of Glencore’s coal haulage needs in the Hunter Valley over a 20-year contract.

The deal represents GWA’s bid to strengthen its nationwide footprint in Australia as it creates a significant presence in the Hunter Valley coal supply chain in New south Wales. The complete transaction will close on December 1 2016, subject to Australian Foreign Investment Review Board approval.

GRail provides haulage and logistics services for approximately 40 million tonnes per year of steam coal.

Through the contract, GWA will hold rights to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley to Port of Newcastle and will have minimum guaranteed volumes over the first 18 years.  

GRail includes nine train sets, which consists of 30 locomotives and 894 wagons.

GW owns or leases over 120 freight railroads worldwide, organised into 10 operating regions with approximately 7,200 employees and more than 2,800 customers.

Specifically, GWA provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.

With the 2010 acquisition of the Tarcoola-to-Darwin railway, Genesee & Wyoming Australia Pty Ltd became the largest of the 11 Genesee & Wyoming operating regions around the world.

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