Interesting Q&A snippet from Q317 earnings con call

For discussion of the various Class III Lines of the Genesee & Wyoming Inc. Railroad Holding Co. short-lines. Their Class II holdings should be discussed in the relevant separate forums above.

Their website is here: GWRR.com
A list of their holdings is here: Wikipedia List

Interesting Q&A snippet from Q317 earnings con call

Postby johnpbarlow » Sun Nov 05, 2017 7:25 am

Interesting excerpt from G&W's recent Q317 earnings conference call with financial analysts:

...just sort of continuing with that theme, CSX's CEO, Mr. Hunter Harrison, had recently mentioned that he is potentially looking at selling some of CSX's operations in Canada including two terminals and a rail line in Montreal. Is this something that GWR would be interested in and would this fit with the new investment strategy?


And here is the vague reply from G&W exec John Hellman:

Well, with respect to any specific opportunities that emerge such as the one you identified, we generally don't comment on any specific potential investments or acquisitions until there's actually a transaction to talk about. You can always assume that if – particularly for a company that has a significant presence in Canada like we do, that we evaluate – it's rare that there's ever an opportunity that emerges that we don't take a careful look at it and determine whether or not it's a good fit for us.

So I wouldn't comment on the specifics, but to the extent that there is any short line opportunities or spin-offs or the like, you can always assume that our business development team is taking a careful look at it. And so I think I'll just leave it at that.


FWIW, G&W also mentioned elsewhere that cash flow is strong and they're in the market for acquiring any RR's spun-off track...
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Re: Interesting Q&A snippet from Q317 earnings con call

Postby F-line to Dudley via Park » Mon Nov 06, 2017 8:40 am

Quebec Gatineau Rwy. is paper-barriered to CN and CP in Montreal and doesn't direct-interchange with CSX, so the only existing G&W mark that would be integrated is tiny Massena Terminal in New York. But that's still an acquisition they'd highly covet for the upper-hand it would give them for all manner of lanes into CP/CN @ Montreal: from the southwest (CSX), southeast (SLR/SLQ), due-south (NECR), and due-west/northeast (QGRY). Outside of Class I's CN/CP, nobody else would be able to offer route coverage into that hub from all around the compass.
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