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Rail News Home Rail Industry Trends

4/28/2011



Rail News: Rail Industry Trends

ARG Trans, Genesee & Wyoming land new business


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The Oregon International Port of Coos Bay recently selected ARG Trans as the preferred rail operator for the 133-mile Coos Bay line from a pool of five final candidates. The port has begun negotiating a contract or lease agreement with ARG Trans to operate trains and maintain the former Central Oregon and Pacific Railroad line, which closed in 2007 and was purchased by the port in 2009.

The line will operate as the Coos Bay Rail Link.  About $24 million worth of repair work is under way on the line to increase train speed from 10 mph to between 25 and 40 mph. Partial service is expected to resume in summer, followed by full operation in fall.

“Partnering with the port is in keeping with ARG Trans’ strategy of focusing management attention on business opportunities that have significant growth potential,” said ARG Trans President Scott Parkinson in a prepared statement.

Meanwhile, Genesee & Wyoming Inc. (GWI) subsidiary Rotterdam Rail Feeding (RRF) announced it will begin dedicated terminal shunting and feeder services in the Port of Antwerp. RRF currently provides rail service at the Port of Rotterdam and at terminals throughout the Netherlands.

The company also has received a license under the name Antwerp Rail Feeding to operate in Germany, enhancing its ability to route short-haul traffic into the ports of Rotterdam and Antwerp, RRF officials said in a prepared statement.

To supplement its 22 Dutch- and German-licensed locomotives, Antwerp Rail Feeding recently took delivery of its first Belgian-licensed locomotive and plans to acquire more units in the future.

In addition, GWI subsidiary Western Labrador Rail Services (WLRS) entered into a long-term rail services agreement with Labrador Iron Mines Ltd. to operate the miner’s newly constructed four-mile line connecting a processing facility in western Labrador to Tshiuetin Rail Transportation Inc.’s (TSH) line between Schefferville and Emeril Junction, Quebec.

WLRS will provide and operate up to five locomotives, which also will be used by TSH to haul unit trains of iron ore to Emeril Junction. Operations are slated to begin next month.

GWI also announced that its Genesee & Wyoming Australia (GWA) subsidiary signed a rail haulage agreement with a WPG Resources Ltd. (WPG) subsidiary to transport 3.3 million tons of hematite iron ore annually from a mine in South Australia. GWA plans to move unit trains of iron ore from a siding near Wirrida, South Australia, to a new bulk export facility in Port Pirie, South Australia. The haulage service is scheduled to start in second-quarter 2012 and continue for at least five years.
 
To provide the service, GWA plans to purchase nine new, 4,400-horsepower locomotives, and make other rolling stock and facilities investments totaling $72 million.