Tuesday, July 14, 2009

Genesee & Wyoming traffic declines in second quarter

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Genesee & Wyoming Inc. Tuesday reported a decline in traffic for both June and the second quarter of 2009, compared with their respective periods a year ago.

Greenwich, Conn.-based GWI said traffic in June 2009 fell 1.8%, while second-quarter traffic declined 4.3%.

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Excluding acquisitions made by the company in the past 12 months, GWI's same-railroad traffic in June 2009 decreased 17.2%, compared with June 2008, led by declines in metals traffic, pulp & paper shipments, and mineral & stone traffic. Same-railroad traffic for the second quarter fell 20.0%, attributed to pulp & paper moves, metals traffic, and coal, coke, and ores traffic.

GWI railroads acquired within the last 12 months include the Georgia Southwestern Railroad and the Ohio Central Railroad System, both of which GWI purchased on Oct. 1, 2008. Carloads from acquisitions in the second quarter of 2009 includes traffic from the Georgia Southwestern Railroad, the Ohio Central Railroad System and, for April 2009 and May 2009, from CAGY Industries, Inc., which GWI purchased on May 31, 2008.

Last month GWI announced its intent to discontinue operations of its Huron Central Railway (HCRY) in October. HCRY traffic volume in June was half that of June 2008; second-quarter carload volume fell almost as much, 46.8%.