By Jeff Stagl, Managing Editor
Reflecting the 1800s “Manifest Destiny” ideology of expanding the United States territory to the west, Genesee & Wyoming Canada Inc. aims to extend its eastern-concentrated service facilities to western locations in North America’s northernmost nation.
The Genesee & Wyoming Inc. subsidiary took the first strategic step in that direction in late July, when it acquired BMS Locomotive Service Group Inc. (BMS). For more than 20 years, BMS has provided locomotive inspection, maintenance, refurbishment and repair services in western Canada.
The company operates a shop, warehouse and office in Edmonton, Alberta. BMS primarily is a field service company, providing a range of “cradle-to-grave" offerings, such as pre-purchase/lease consulting, delivery inspections, scheduled weekly maintenance, heavy mechanical and electrical repairs and upgrades, fabrication, modernizations, wheel management and electrical work.
The deal was a home run because BMS now is the company’s first repair shop in western Canada and the first that provides locomotive services, says Genesee & Wyoming Canada President Rick McLellan.
“For over a year, we have been focusing on more opportunities in the west, such as in Alberta, British Columbia and Saskatchewan,” he says. “We do similar work as BMS in the east, but we wanted to extend our niche of work to the locomotive maintenance world.”
Through Railcare Inc., Genesee & Wyoming Canada Inc. performs rail-car maintenance and repair work at a large shop in Hamilton, Ontario. Genessee & Wyoming Inc. Genesee & Wyoming Canada provides rail-car loading and switching services, and oversees a large car maintenance and repair facility — managed by Railcare Inc. — in Hamilton, Ontario.
The subsidiary also governs the following short lines: the Cape Breton & Central Nova Scotia Railway; Goderich-Exeter Railway; Huron Central Railway; Knob Lake & Timmins Railway; Ottawa Valley Railway; Quebec Gatineau Railway; St. Lawrence & Atlantic Railroad (Quebec); Southern Ontario Railway; and Western Labrador Rail Services.
The BMS acquisition enhances Genesee & Wyoming Canada’s suite of services for customers throughout Canada and expands its footprint in an area that poses potential for tremendous industrial growth, says McLellan. Plus, BMS’ locomotive expertise, shared commitment to safety and service, and similar core values made the company an ideal fit, he adds.
BMS employs 10 people. Genesee & Wyoming Canada expects to retain all the workers and the current BMS leadership team, and currently has no plans to change the operations in Edmonton, says McLellan.
BMS mostly services locomotives for short lines, shippers, industrial rail customers and heritage operations.
Although the Edmonton shop performs some work for Class Is, there have been discussions about expanding work for the large railroads in the future, says McLellan.
Fow now, Genesee & Wyoming Canada plans to continue eying business growth opportunities in the west.
“We are open to acquisitions, contracts, service providers and investors. We’re always looking for ways to grow the business,” says McLellan. “We’re excited about opportunities in western Canada.”
