GMXT to become G&W's partner in CG Railway

Genesee & Wyoming Inc. (G&W) today announced Grupo Mexico Transportes (GMXT) will become a new partner in G&W's CG Railway LLC (CGR) joint venture, pending regulatory approvals for GMXT's purchase of equity interests in CGR.

G&W formed a joint venture with SEACOR Holdings Inc. in 2017 to own and operate CGR, which has provided rail-ferry service between the ports of Mobile, Alabama, and Coatzacoalcos, Veracruz, across the Gulf of Mexico since 2001. Last week, GMXT announced its intention to acquire SEACOR's stake in CGR.

"This further strengthens our partnership with GMXT, a leader in rail transportation services in Mexico with a strong presence in the southern U.S., including 13 ports between the two countries," said Michael Miller, CEO for G&W North America, in a press release. "Their network access and expertise, coupled with G&W’s ability to deliver safe and customer-centric first- and last-mile rail service, will enhance CGR’s overall service offering while extending the reach of CGR’s efficient and secure rail service into and out of Mexico."

CGR operates two double-deck 590-foot roll-on/roll-off rail ferries, each with a capacity of 135 rail cars. Its sister company, Central Gulf Railcar Services LLC, located near in Mobile, Alabama, offers warehousing, transloading and full rail-car repair services.

Last week, GMXT announced its intention to purchase a 60% stake in Golfo de Mexico Rail Ferry Holdings LLC and Rail Ferry Vessel Holdings LLC. SEACOR has been part of a Golfo de Mexico joint venture. Financial terms were not disclosed.