Genesee & Wyoming Inc. (G&W) has announced that G&W Australia (GWA) has completed the acquisition of Glencore Rail (GRail), which includes nine train sets (30 locomotives and 894 wagons) for A$1.14 billion. GWA also concurrently issued a 49 percent equity stake in GWA to funds and clients managed by Macquarie Infrastructure and Real Assets (MIRA).
In conjunction with the acquisition, GWA has entered into a long-term, take-or-pay contract with Glencore Coal Pty Limited (GC) to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley to the Port of Newcastle, subject to existing agreements and certain limitations.
The acquisition adds a significant presence for GWA in the Hunter Valley coal supply chain and complements GWA’s existing intermodal, agricultural and mining business in South Australia and the Northern Territory.