GENESEE & WYOMING INC. Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for August 2017.
G&W’s traffic in August 2017 was 277,472 carloads, an increase of 25,404 carloads, or 10.1%, compared with August 2016. G&W’s same-railroad traffic in August 2017 was 245,080 carloads, a decrease of 6,988 carloads, or 2.8%, compared with August 2016.
G&W’s traffic in the third quarter of 2017 through August was 554,612 carloads, an increase of 59,594 carloads, or 12.0%, compared with the third quarter of 2016 through August. G&W’s same-railroad traffic in the third quarter of 2017 through August was 484,445 carloads, a decrease of 10,573 carloads, or 2.1%, compared with the third quarter of 2016 through August.
The table below sets forth summary total carloads by segment for August 2017 and August 2016.
| Segment | August |
August | Change | % | |||||||||
| North American Operations | 141,221 | 138,530 | 2,691 | 1.9% | |||||||||
| Australian Operations(1) | 39,771 | 14,349 | 25,422 | NM | |||||||||
| U.K./European Operations | 96,480 | 99,189 | (2,709) | (2.7%) | |||||||||
| Total G&W Operations | 277,472 | 252,068 | 25,404 | 10.1% | |||||||||
| Carloads from New Railroads | 32,392 | ||||||||||||
| Same-railroad carloads | 245,080 | 252,068 | (6,988) | (2.8%) | |||||||||
| (1) 51.1% owned by G&W as of December 1, 2016. | |||||||||||||
August 2017 Highlights by Segment
- North American Operations: Traffic in August 2017 was 141,221 carloads, an increase of 1.9% compared with August 2016, including carloads from the Providence and Worcester Railroad Company (P&W) acquisition, which closed on November 1, 2016, and the Heart of Georgia Railroad, Inc. (HOG), which closed on May 31, 2017. On a same-railroad basis, North American traffic decreased 1.6%, primarily due to weaker than expected agricultural products traffic.
- Australian Operations: Traffic in August 2017 was 39,771 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. On a same-railroad basis, Australian traffic decreased 14.5%, primarily due to decreased minerals & stone traffic as a result of an expected outage at a customer port facility, partially offset by increased agricultural products and metallic ores traffic. Please note, simultaneous with the GRail acquisition, G&W issued a 48.9% equity stake in its Australian Operations to Macquarie Infrastructure and Real Assets. Carload information for the Australian Operations is presented on a 100% basis.
- U.K./European Operations: Traffic in August 2017 was 96,480 carloads, a decrease of 2.7% compared with August 2016, primarily due to decreased coal & coke and intermodal traffic, partially offset by increased minerals & stone traffic.
The table below sets forth North American Operations carload information for August 2017 and August 2016 by commodity group.
| North American Operations: | August |
August | Change | % Change | |||||||||
| Agricultural Products | 16,309 | 17,559 | (1,250) | (7.1%) | |||||||||
| Autos & Auto Parts | 3,545 | 2,447 | 1,098 | 44.9% | |||||||||
| Chemicals & Plastics | 15,008 | 14,933 | 75 | 0.5% | |||||||||
| Coal & Coke | 21,056 | 21,993 | (937) | (4.3%) | |||||||||
| Food & Kindred Products | 5,262 | 5,312 | (50) | (0.9%) | |||||||||
| Intermodal | 1,131 | 18 | 1,113 | NM | |||||||||
| Lumber & Forest Products | 12,095 | 12,269 | (174) | (1.4%) | |||||||||
| Metallic Ores | 1,619 | 1,752 | (133) | (7.6%) | |||||||||
| Metals | 12,038 | 11,383 | 655 | 5.8% | |||||||||
| Minerals & Stone | 19,508 | 17,936 | 1,572 | 8.8% | |||||||||
| Petroleum Products | 8,596 | 8,728 | (132) | (1.5%) | |||||||||
| Pulp & Paper | 14,319 | 14,426 | (107) | (0.7%) | |||||||||
| Waste | 4,920 | 4,528 | 392 | 8.7% | |||||||||
| Other | 5,815 | 5,246 | 569 | 10.8% | |||||||||
| Total carloads | 141,221 | 138,530 | 2,691 | 1.9% | |||||||||
| Carloads from New Railroads(1) | 4,893 | ||||||||||||
| Same-railroad carloads | 136,328 | 138,530 | (2,202) | (1.6%) |
| (1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include P&W and HOG. These railroads contributed 312 carloads of autos & auto parts traffic, 527 carloads of chemicals & plastics traffic, 1,131 carloads of intermodal traffic, 490 carloads of lumber & forest products traffic, 1,534 carloads of minerals & stone traffic and 899 carloads from all other commodities. |
The following highlights relate to North American same-railroad traffic, excluding traffic from P&W, which was acquired on November 1, 2016, and HOG, which was acquired on May 31, 2017.
- Agricultural products traffic decreased 1,408 carloads, or 8.0%, primarily due to weaker than expected shipments in G&W’s Mountain West Region due to drought conditions in South Dakota as well as reduced exports of dried distillers’ grains (DDGs) in G&W’s Pacific Region.
- All remaining traffic decreased by a net 794 carloads.
The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for August 2017 and August 2016 by commodity group.
| Australian Operations(1): | August |
August | Change | % Change | |||||||||
| Agricultural Products | 4,223 | 2,744 | 1,479 | 53.9% | |||||||||
| Coal & Coke | 27,499 | - | 27,499 | NM | |||||||||
| Intermodal | 5,143 | 5,186 | (43) | (0.8%) | |||||||||
| Metallic Ores | 2,877 | 1,637 | 1,240 | 75.7% | |||||||||
| Minerals & Stone | - | 4,758 | (4,758) | (100.0%) | |||||||||
| Petroleum Products | 29 | 24 | 5 | 20.8% | |||||||||
| Total carloads | 39,771 | 14,349 | 25,422 | NM | |||||||||
| Carloads from New Railroads(2) | 27,499 | ||||||||||||
| Same-railroad carloads | 12,272 | 14,349 | (2,077) | (14.5%) |
| (1) 51.1% owned by G&W as of December 1, 2016. |
| (2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 27,499 carloads of coal & coke traffic. |
The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on December 1, 2016.
- Minerals & stone traffic decreased 4,758 carloads, or 100.0%, primarily due to an expected outage at a customer port facility.
- Agricultural products traffic increased 1,479 carloads, or 53.9%, primarily due to a stronger harvest in 2017.
- Metallic ores traffic increased 1,240 carloads, or 75.7%, primarily due to the re-opening of a manganese mine in March 2017.
- All remaining traffic decreased by a net 38 carloads.
The table below sets forth U.K./European Operations carload information for August 2017 and August 2016 by commodity group.
| U.K./European Operations: | August |
August | Change | % | |||||||||
| Agricultural Products | 364 | 220 | 144 | 65.5% | |||||||||
| Coal & Coke | 1,174 | 3,147 | (1,973) | (62.7%) | |||||||||
| Intermodal | 78,603 | 80,332 | (1,729) | (2.2%) | |||||||||
| Minerals & Stone | 16,339 | 15,490 | 849 | 5.5% | |||||||||
| Total carloads | 96,480 | 99,189 | (2,709) | (2.7%) | |||||||||
- Coal & coke traffic decreased 1,973 carloads, or 62.7%, primarily due to decreased shipments in the U.K.
- Intermodal traffic decreased 1,729 carloads, or 2.2%, primarily due to decreased shipments in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS.
- Minerals & stone traffic increased 849 carloads, or 5.5%, primarily due to increased shipments in Poland.
- All remaining traffic increased by a net 144 carloads.
Third Quarter of 2017 Through August Traffic
The table below sets forth summary total carloads by segment for the third quarter of 2017 through August and the third quarter of 2016 through August.
| Segment | QTD Aug |
QTD Aug | Change | % | |||||||||
| North American Operations | 275,043 | 269,670 | 5,373 | 2.0% | |||||||||
| Australian Operations(1) | 92,099 | 29,448 | 62,651 | NM | |||||||||
| U.K./European Operations | 187,470 | 195,900 | (8,430) | (4.3%) | |||||||||
| Total G&W Operations | 554,612 | 495,018 | 59,594 | 12.0% | |||||||||
| Carloads from New Railroads | 70,167 | ||||||||||||
| Same-railroad carloads | 484,445 | 495,018 | (10,573) | (2.1%) | |||||||||
| (1) 51.1% owned by G&W as of December 1, 2016. | |||||||||||||
The table below sets forth North American Operations carload information for the third quarter of 2017 through August and the third quarter of 2016 through August by commodity group.
| North American Operations: | QTD Aug |
QTD Aug | Change | % Change | |||||||||
| Agricultural Products | 31,632 | 36,533 | (4,901) | (13.4%) | |||||||||
| Autos & Auto Parts | 6,066 | 4,455 | 1,611 | 36.2% | |||||||||
| Chemicals & Plastics | 29,572 | 28,940 | 632 | 2.2% | |||||||||
| Coal & Coke | 42,146 | 42,040 | 106 | 0.3% | |||||||||
| Food & Kindred Products | 9,761 | 10,094 | (333) | (3.3%) | |||||||||
| Intermodal | 2,132 | 18 | 2,114 | NM | |||||||||
| Lumber & Forest Products | 23,942 | 23,578 | 364 | 1.5% | |||||||||
| Metallic Ores | 3,153 | 3,177 | (24) | (0.8%) | |||||||||
| Metals | 22,457 | 20,623 | 1,834 | 8.9% | |||||||||
| Minerals & Stone | 38,026 | 35,874 | 2,152 | 6.0% | |||||||||
| Petroleum Products | 17,079 | 16,848 | 231 | 1.4% | |||||||||
| Pulp & Paper | 28,830 | 28,520 | 310 | 1.1% | |||||||||
| Waste | 10,023 | 9,046 | 977 | 10.8% | |||||||||
| Other | 10,224 | 9,924 | 300 | 3.0% | |||||||||
| Total carloads | 275,043 | 269,670 | 5,373 | 2.0% | |||||||||
| Carloads from New Railroads(1) | 8,824 | ||||||||||||
| Same-railroad carloads | 266,219 | 269,670 | (3,451) | (1.3%) |
| (1) Total carloads from rail operations commenced or acquired by G&W in the last 12 months include the P&W and HOG. These railroads contributed 491 carloads of autos & auto parts traffic, 995 carloads of chemicals & plastics traffic, 2,132 carloads of intermodal traffic, 896 carloads of lumber & forest products traffic, 2,626 carloads of minerals & stone traffic and 1,684 carloads from all other commodities. |
The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for the third quarter of 2017 through August and the third quarter of 2016 through August by commodity group.
| Australian Operations(1): |
QTD Aug |
QTD Aug | Change |
% | |||||||||
| Agricultural Products | 9,386 | 5,728 | 3,658 | 63.9% | |||||||||
| Coal & Coke | 61,343 | - | 61,343 | NM | |||||||||
| Intermodal | 10,539 | 10,501 | 38 | 0.4% | |||||||||
| Metallic Ores | 6,164 | 3,579 | 2,585 | 72.2% | |||||||||
| Minerals & Stone | 4,607 | 9,590 | (4,983) | (52.0%) | |||||||||
| Petroleum Products | 60 | 50 | 10 | 20.0% | |||||||||
| Total carloads | 92,099 | 29,448 | 62,651 | NM | |||||||||
| Carloads from New Railroads(2) | 61,343 | ||||||||||||
| Same-railroad carloads | 30,756 | 29,448 | 1,308 | 4.4% |
| (1) 51.1% owned by G&W as of December 1, 2016. |
| (2) Total carloads from GRail, which was acquired on December 1, 2016 and contributed 61,343 carloads of coal & coke traffic. |
The table below sets forth U.K./European Operations carload information for the third quarter of 2017 through August and the third quarter of 2016 through August by commodity group.
| U.K./European Operations: | QTD Aug |
QTD Aug | Change | % | |||||||||
| Agricultural Products | 472 | 406 | 66 | 16.3% | |||||||||
| Coal & Coke | 2,099 | 6,001 | (3,902) | (65.0%) | |||||||||
| Intermodal | 151,879 | 159,541 | (7,662) | (4.8%) | |||||||||
| Minerals & Stone | 33,020 | 29,952 | 3,068 | 10.2% | |||||||||
| Total carloads | 187,470 | 195,900 | (8,430) | (4.3%) | |||||||||
Other
The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.
Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per metric ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, operating income or net income. Please refer to the documents G&W files from time to time with the Securities and Exchange Commission, such as its Form 10-Q and 10-K, which contain additional information on G&W’s freight traffic and segment reporting.
About G&W
G&W owns or leases 122 freight railroads worldwide that are organized in 10 operating regions with approximately 8,000 employees and 3,000 customers.
- G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 115 short line and regional freight railroads with more than 13,000 track-miles.
- G&W’s Australia Region provides rail freight services in New South Wales, including in the Hunter Valley coal supply chain, the Northern Territory and South Australia, including operating the 1,400-mile Tarcoola-to-Darwin rail line. As of December 1, 2016, G&W’s Australia Region is 51.1% owned by us and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
- G&W’s U.K./European Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany, intermodal services connecting Northern European seaports with key industrial regions in Germany, and regional rail services in the Netherlands and Belgium.
G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.
For more information, visit gwrr.com.
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