Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for September 2017 and the third quarter of 2017.
G&W’s traffic in September 2017 was 259,516 carloads, an increase of 14,720 carloads, or 6.0%, compared with September 2016. G&W’s same-railroad traffic in September 2017 was 235,175 carloads, a decrease of 9,621 carloads, or 3.9%, compared with September 2016.
G&W’s traffic in the third quarter of 2017 was 814,128 carloads, an increase of 74,314 carloads, or 10.0%, compared with the third quarter of 2016. G&W’s same-railroad traffic in the third quarter of 2017 was 719,620 carloads, a decrease of 20,194 carloads, or 2.7%, compared with the third quarter of 2016.
The table below sets forth summary total carloads by segment for September 2017 and September 2016.
Segment |
September |
September | Change |
% | |||||||||
North American Operations | 132,654 | 132,329 | 325 | 0.2% | |||||||||
Australian Operations(1) | 31,552 | 14,084 | 17,468 | NM | |||||||||
U.K./European Operations | 95,310 | 98,383 | (3,073) | (3.1%) | |||||||||
Total G&W Operations | 259,516 | 244,796 | 14,720 | 6.0% | |||||||||
Carloads from New Railroads | 24,341 | ||||||||||||
Same-railroad carloads | 235,175 | 244,796 | (9,621) | (3.9%) |
(1) 51.1% owned by G&W as of December 1, 2016. |
September 2017 Highlights by Segment
- North American Operations: Traffic in September 2017 was 132,654 carloads, an increase of 0.2% compared with September 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 3.2%, primarily due to decreased coal & coke and agricultural products traffic.
- Australian Operations: Traffic in September 2017 was 31,552 carloads, including carloads from the Glencore Rail (GRail) acquisition, which closed on December 1, 2016. Coal & Coke traffic, which operates primarily under a take or pay contract structure, was negatively affected in September 2017 by industrial action at Hunter Valley coal mines. On a same-railroad basis, Australian traffic decreased 16.6%, primarily due to decreased minerals & stone traffic as a result of an expected outage at a customer port facility, partially offset by increased metallic ores and agricultural products 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 September 2017 was 95,310 carloads, a decrease of 3.1% compared with September 2016, primarily due to decreased intermodal traffic in Continental Europe and lower U.K. coal & coke traffic, partially offset by increased minerals & stone traffic.
The table below sets forth North American Operations carload information for September 2017 and September 2016 by commodity group.
North American Operations: |
September |
September | Change | % Change | |||||||||
Agricultural Products | 15,956 | 17,491 | (1,535) | (8.8%) | |||||||||
Autos & Auto Parts | 3,662 | 2,580 | 1,082 | 41.9% | |||||||||
Chemicals & Plastics | 14,167 | 13,462 | 705 | 5.2% | |||||||||
Coal & Coke | 18,718 | 20,988 | (2,270) | (10.8%) | |||||||||
Food & Kindred Products | 4,654 | 5,463 | (809) | (14.8%) | |||||||||
Intermodal | 1,013 | 94 | 919 | NM | |||||||||
Lumber & Forest Products | 11,904 | 11,675 | 229 | 2.0% | |||||||||
Metallic Ores | 1,514 | 1,359 | 155 | 11.4% | |||||||||
Metals | 11,546 | 11,355 | 191 | 1.7% | |||||||||
Minerals & Stone | 19,078 | 17,656 | 1,422 | 8.1% | |||||||||
Petroleum Products | 7,693 | 8,111 | (418) | (5.2%) | |||||||||
Pulp & Paper | 13,414 | 13,201 | 213 | 1.6% | |||||||||
Waste | 4,307 | 4,374 | (67) | (1.5%) | |||||||||
Other | 5,028 | 4,520 | 508 | 11.2% | |||||||||
Total carloads | 132,654 | 132,329 | 325 | 0.2% | |||||||||
Carloads from New Railroads(1) | 4,542 | ||||||||||||
Same-railroad carloads | 128,112 | 132,329 | (4,217) | (3.2%) |
(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 358 carloads of autos & auto parts traffic, 462 carloads of chemicals & plastics traffic, 1,013 carloads of intermodal traffic, 372 carloads of lumber & forest products traffic, 1,554 carloads of minerals & stone traffic, and 783 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.
- Coal & coke traffic decreased 2,270 carloads, or 10.8%, primarily due to decreased shipments of utility coal in G&W’s Midwest Region.
- Agricultural products traffic decreased 1,693 carloads, or 9.7%, primarily due to weaker than expected shipments in G&W’s Central Region due to drought conditions in South Dakota as well as decreased export grain shipments in G&W’s Midwest Region.
- All remaining traffic decreased by a net 254 carloads.
The table below sets forth carload information for G&W’s 51.1% owned Australian Operations for September 2017 and September 2016 by commodity group.
Australian Operations(1): |
September |
September | Change |
% | |||||||||
Agricultural Products | 3,777 | 2,896 | 881 | 30.4% | |||||||||
Coal & Coke | 19,799 | - | 19,799 | NM | |||||||||
Intermodal | 4,877 | 4,916 | (39) | (0.8%) | |||||||||
Metallic Ores | 2,190 | 1,267 | 923 | 72.8% | |||||||||
Minerals & Stone | 881 | 4,977 | (4,096) | (82.3%) | |||||||||
Petroleum Products | 28 | 28 | - | - | |||||||||
Total carloads | 31,552 | 14,084 | 17,468 | NM | |||||||||
Carloads from New Railroads(2) | 19,799 | ||||||||||||
Same-railroad carloads | 11,753 | 14,084 | (2,331) | (16.6%) |
(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 19,799 carloads of coal & coke traffic. |
Australian Coal & Coke traffic, which operates primarily under a take or pay contract structure, was negatively affected in September 2017 by industrial action at Hunter Valley coal mines.
The following highlights relate to Australian same-railroad traffic, excluding traffic from GRail, which was acquired on December 1, 2016.
- Minerals & stone traffic decreased 4,096 carloads, or 82.3%, primarily due to an expected outage at a customer port facility.
- Metallic ores traffic increased 923 carloads, or 72.8%, primarily due to the re-opening of a manganese mine in March 2017.
- Agricultural products traffic increased 881 carloads, or 30.4%, primarily due to a stronger harvest in 2017.
- All remaining traffic decreased by a net 39 carloads.
The table below sets forth U.K./European Operations carload information for September 2017 and September 2016 by commodity group.
U.K./European Operations: |
September |
September | Change |
% | |||||||||
Agricultural Products | 305 | 246 | 59 | 24.0% | |||||||||
Coal & Coke | 1,699 | 3,275 | (1,576) | (48.1%) | |||||||||
Intermodal | 77,180 | 79,514 | (2,334) | (2.9%) | |||||||||
Minerals & Stone | 16,126 | 15,348 | 778 | 5.1% | |||||||||
Total carloads | 95,310 | 98,383 | (3,073) | (3.1%) | |||||||||
- Intermodal traffic decreased 2,334 carloads, or 2.9%, primarily due to decreased shipments in Continental Europe due to the discontinuance of certain routes as part of the restructuring of ERS, partially offset by increased intermodal shipments in the U.K.
- Coal & coke traffic decreased 1,576 carloads, or 48.1%, primarily due to decreased shipments in the U.K.
- Minerals & stone traffic increased 778 carloads, or 5.1%, primarily due to increased shipments in Poland.
- All remaining traffic increased by a net 59 carloads.
Third Quarter of 2017 Traffic
The table below sets forth summary total carloads by segment for the third quarter of 2017 and the third quarter of 2016.
Segment | Q3 2017 | Q3 2016 | Change |
% | |||||||||
North American Operations | 407,697 | 401,999 | 5,698 | 1.4% | |||||||||
Australian Operations(1) | 123,651 | 43,532 | 80,119 | NM | |||||||||
U.K./European Operations | 282,780 | 294,283 | (11,503) | (3.9%) | |||||||||
Total G&W Operations | 814,128 | 739,814 | 74,314 | 10.0% | |||||||||
Carloads from New Railroads | 94,508 | ||||||||||||
Same-railroad carloads | 719,620 | 739,814 | (20,194) | (2.7%) |
(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 and the third quarter of 2016 by commodity group.
North American Operations: | Q3 2017 | Q3 2016 | Change | % Change | |||||||||
Agricultural Products | 47,588 | 54,024 | (6,436) | (11.9%) | |||||||||
Autos & Auto Parts | 9,728 | 7,035 | 2,693 | 38.3% | |||||||||
Chemicals & Plastics | 43,739 | 42,402 | 1,337 | 3.2% | |||||||||
Coal & Coke | 60,864 | 63,028 | (2,164) | (3.4%) | |||||||||
Food & Kindred Products | 14,415 | 15,557 | (1,142) | (7.3%) | |||||||||
Intermodal | 3,145 | 112 | 3,033 | NM | |||||||||
Lumber & Forest Products | 35,846 | 35,253 | 593 | 1.7% | |||||||||
Metallic Ores | 4,667 | 4,536 | 131 | 2.9% | |||||||||
Metals | 34,003 | 31,978 | 2,025 | 6.3% | |||||||||
Minerals & Stone | 57,104 | 53,530 | 3,574 | 6.7% | |||||||||
Petroleum Products | 24,772 | 24,959 | (187) | (0.7%) | |||||||||
Pulp & Paper | 42,244 | 41,721 | 523 | 1.3% | |||||||||
Waste | 14,330 | 13,420 | 910 | 6.8% | |||||||||
Other | 15,252 | 14,444 | 808 | 5.6% | |||||||||
Total carloads | 407,697 | 401,999 | 5,698 | 1.4% | |||||||||
Carloads from New Railroads(1) | 13,366 | ||||||||||||
Same-railroad carloads | 394,331 | 401,999 | (7,668) | (1.9%) |
(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 849 carloads of autos & auto parts traffic, 1,457 carloads of chemicals & plastics traffic, 3,145 carloads of intermodal traffic, 1,268 carloads of lumber & forest products traffic, 4,180 carloads of minerals & stone traffic and 2,467 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 and the third quarter of 2016 by commodity group.
Australian Operations(1): | Q3 2017 | Q3 2016 | Change |
% | |||||||||
Agricultural Products | 13,163 | 8,624 | 4,539 | 52.6% | |||||||||
Coal & Coke | 81,142 | - | 81,142 | NM | |||||||||
Intermodal | 15,416 | 15,417 | (1) | (0.0%) | |||||||||
Metallic Ores | 8,354 | 4,846 | 3,508 | 72.4% | |||||||||
Minerals & Stone | 5,488 | 14,567 | (9,079) | (62.3%) | |||||||||
Petroleum Products | 88 | 78 | 10 | 12.8% | |||||||||
Total carloads | 123,651 | 43,532 | 80,119 | NM | |||||||||
Carloads from New Railroads(2) | 81,142 | ||||||||||||
Same-railroad carloads | 42,509 | 43,532 | (1,023) | (2.3%) |
(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 81,142 carloads of coal & coke traffic. |
The table below sets forth U.K./European Operations carload information for the third quarter of 2017 and the third quarter of 2016 by commodity group.
U.K./European Operations: | Q3 2017 | Q3 2016 | Change |
% | |||||||||
Agricultural Products | 777 | 652 | 125 | 19.2% | |||||||||
Coal & Coke | 3,798 | 9,276 | (5,478) | (59.1%) | |||||||||
Intermodal | 229,059 | 239,055 | (9,996) | (4.2%) | |||||||||
Minerals & Stone | 49,146 | 45,300 | 3,846 | 8.5% | |||||||||
Total carloads | 282,780 | 294,283 | (11,503) | (3.9%) | |||||||||
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 organized in nine locally managed operating regions with 8,000 employees serving 3,000 customers.
- G&W’s seven 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 serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
- G&W’s UK/Europe Region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.
G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.
For more information, visit gwrr.com.
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