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RailAmerica Inc. Aug. 28 announced that subsidiary Freight Australia's third-quarter grain shipments have been negatively affected by a severe southeast Australia drought, and low-margin Canadian bridge traffic has remained weak during the quarter's first seven weeks.


Meaning the short-line holding company now predicts third-quarter Australian revenue to be reduced between $3.5 million and $5 million, and Canadian bridge-traffic revenue, about $1 million; quarterly revenue likely will total about $114 million.


Australian Wheat Board (AWB) expects the 2002/2003 harvest to be
about 30 percent lower than last year's, causing AWB to stockpile last year's above-average crop for domestic use rather than the export market.


RailAmerica officials believe AWB will release grain for domestic
consumption (which subsequently would be hauled by Freight Australia) during the fourth quarter.


If stored grain is released and Canadian bridge traffic rebounds, RailAmerica expects fourth-quarter revenue between $116 million and $118 million.


The company still forecasts 2002 revenue at about $460 million, which would be a substantial increase compared with 2001's $370 million.