G&W completes FreightLink acquisition
Written by William C. Vantuono, Editor-in-ChiefGreenwich, Conn.-based Genesee & Wyoming Inc. (GWI) said Wednesday it has completed the acquisition of the assets of Australia’s FreightLink Pty Ltd., or FL (receivers and managers appointed), Asia Pacific Transport Pty Ltd., or APT (receivers and managers appointed), and the other APT joint venture sellers (together with FL and APT, "FreightLink") for $319 million, plus the assumption of debt with a carrying value of $1.7 million.
FreightLink is the owner and operator of the 1,400-mile Tarcoola-to-Darwin railroad, linking the Port of Darwin to the Australian interstate rail network in South Australia. The rail line is located on land leased to FreightLink by the AustralAsia Railway Corp. under a concession agreement that terminates in 2054. FreightLink commenced operations in 2004, following the construction of the Alice Springs-to-Darwin portion of the rail line.
Bert Easthope, managing director of Genesee & Wyoming Australia (GWA), said, “The completion of the FreightLink acquisition heralds a new era for rail in South Australia and the Northern Territory. GWA looks forward to delivering quality service to customers in the Adelaide-to-Darwin corridor. The railroad is a strategic asset in the development of the mining industry in the Northern Territory and South Australia. We welcome the opportunity to support and invest in the future growth of our customers.”
Said FreightLink Chairman Malcolm Kinnaird, “The construction of the railway from Alice Springs to Darwin in 2003 has delivered enormous economic benefit to the Northern Territory and South Australia.”
