US-based railroad holding company Genesee & Wyoming (G&W) has signed an agreement to acquire Heart of Georgia Railroad’s (HoG) parent company, Atlantic Western Transportation.
After completion of the acquisition, HoG will be managed as one of G&W’s Coastal Region railroads.
Founded in 1999, HoG operates across 219 miles of track leased from the Georgia Department of Transportation.
It links with G&W’s Georgia Southwestern Railroad at Americus, Georgia, and Georgia Central Railway at Vidalia.
G&W senior vice-president Andy Chunko said: “The Heart of Georgia is an excellent bolt-on acquisition that we expect will enhance economic development by providing an efficient lane across southern Georgia.
“Its proximity to other G&W railroads unlocks operational efficiencies, while enhancing the railroads’ abilities to serve customers and generate new commercial opportunities across the region.
“We also look forward to broadening our already strong relationship with the Georgia Department of Transportation and Georgia Ports Authority, in a state where we have established a significant long-term presence, operating 11 railroads over more than 600 track miles.”
HOG serves an inland intermodal terminal at Cordele, providing direct rail service through the Georgia Central Railway to the Port of Savannah and has Class I railroad connections with CSX at Cordele and with Norfolk Southern at Americus and Helena.
Subject to customary closing conditions, including the receipt of US Surface Transportation Board approval, the acquisition is due for completion in the second quarter of this year.
G&W globally owns or leases 122 freight railroads that are organised in ten operating regions.