Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that its wholly
owned subsidiary, The Columbus & Ohio River Rail Road Company (CUOH),
has signed a long-term agreement to serve the $900-million natural gas
liquids (NGLs) fractionation hub being constructed in Scio, Ohio, by
Utica East Ohio Midstream, LLC.
First announced in March 2012, the processing/fractionation/storage
facility will be the largest integrated midstream service complex in
eastern Ohio and GWI's largest customer to date in the Utica Shale. The
plant's location was selected based on proximity to the Utica Shale's
liquids-rich gas, to key natural gas pipelines and to the CUOH. The CUOH
will construct a one-mile rail siding and rehabilitate a three-mile
storage track to serve the facility, which when fully operational is
expected to ship 10,000 carloads of NGLs annually.
Upon its planned opening in May 2013, the Scio plant will also benefit
from a recent $2-million expansion of CUOH's main rail yard in Newark,
Ohio, funded by a public-private partnership between CUOH and the State
of Ohio. The Newark Yard expansion will facilitate the sorting of
100,000 railcars per year for more than 80 current customers and will
also serve several new, Utica Shale-related projects that have located
or are planning to locate on the CUOH.
"We are excited to be expanding our service relationship with Utica East
Ohio Midstream and to be investing in rail infrastructure to support
their business," said John Murray, assistant vice president of sales and
marketing for GWI's Ohio Region. "Efficient rail service is a key
requirement of shale development, and we are committed to providing our
customers with the necessary rail services to meet their long-term
transportation needs in the Utica and Marcellus markets."
Matthew Dietrich, executive director of the Ohio Rail Development
Commission, said, "The Newark Yard project with CUOH is an excellent
example of how public-private partnerships spark economic development
and job creation by improving our transportation infrastructure."
GWI's Ohio, Pennsylvania and New York railroads directly overlay the
core development areas of the Utica Shale and western Marcellus Shale
formations (see map at www.gwrr.com/shale).
GWI owns and operates short line and regional freight railroads and
provides railcar switching services in the United
States, Australia, Canada, the Netherlands and Belgium. In addition, GWI
operates the Tarcoola to Darwin rail line, which links the Port of
Darwin with the Australian interstate rail network in South Australia.
Operations currently include 66 railroads organized in 10 regions, with
more than 7,600 miles of owned and leased track and approximately 1,400
additional miles under track access arrangements. We provide rail
service at 23 ports in North America, Australia and Europe and perform
contract coal loading and railcar switching for industrial customers.
On October 1, 2012, GWI consummated the acquisition of RailAmerica, Inc.
Immediately following the acquisition, control of RailAmerica was placed
into a voting trust until such time as the U.S. Surface Transportation
Board issues a decision permitting GWI's control of RailAmerica's
railroads, and that decision becomes effective.
RailAmerica, Inc. owns and operates short line and regional freight
railroads in North America, operating a portfolio of 45 individual
railroads with approximately 7,500 miles of track in 28 U.S. states and
three Canadian provinces.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding GWI's business
which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see "Risk Factors" in GWI's
Annual Report on Form 10-K for the most recently ended fiscal year, as
updated in GWI's subsequent Quarterly Reports on Form 10-Q.
Genesee & Wyoming Inc.
Michael E. Williams, 203-413-2116