The Australian subsidiary of US-based short-line railroad holding company Genesee & Wyoming has acquired Glencore Rail for A$1.14bn ($849m).
The company has also issued a 49% equity stake in Genesee & Wyoming Australia (GWA) to clients that are managed by global infrastructure asset manager Macquarie Infrastructure and Real Assets (MIRA).
As part of the deal, the Australian rail freight operator will acquire nine train sets, including 894 wagons and 30 locomotives.
The company has also entered a long-term, take-or-pay contract with Glencore Coal (GC), which produces and exports thermal, coking, and semi-soft coal products.
Subject to existing agreements, the contract has been signed to transport coal manufactured at GC’s existing mines in the Hunter Valley to the Port of Newcastle in New South Wales (NSW).
GWA's buy-out of Glencore Rail will help the company expand its business in Australia, including across the Hunter Valley coal supply chain.
Genesee & Wyoming owns or leases 121 freight railroads worldwide.
The freight railroads are organised in ten operating regions, and host nearly 7,200 employees serving more than 2,800 customers.