Growth for Guelph Junction Railway

Written by Stephen C. Host
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Guelph Junction Railway. Stephen C. Host photo.

Canada’s Guelph Junction Railway (GJR) in 2017 hauled record carloads, declared its first dividend to sole owner City of Guelph, Ont., in more than 20 years, and extended its operating contract with Ontario Southland Railway (OSRX) for up to five more years.

At GJR’s 2017 shareholder meeting, several milestones were announced:

First, annual carloadings hit a new record of 4,809 cars in 2017, up 31% over 2016 and a new record since the City of Guelph took over operations from Canadian Pacific in 1998. This was due to realization of previous investments for various customers, as well as landing a new customer, Traxxside Transloading.

Second, the increase in business and continued improvement of property and plant resulted in a net profit of C$958,000 for the year. The Board adopted a dividend policy, as one has not been paid to the City, the railway’s sole shareholder since Canadian Pacific handed back the line in 1998. (The railway was leased to CP from 1888 until 1998, and has been operated under contract by OSRX since then.) The declared dividend was $100,000, and the policy allows for an annual dividend payment, assuming financial successes is repeated.

Finally, the railway’s contract with Ontario Southland was extended by three years, with an option to renew for two more. OSRX, founded by Jeff Willsie in 1994, has provided 20 years of service to the Guelph Junction and manages all operational aspects. GJR manages fixed assets such as track structure, signals, bridges, crossing protection and codeline. This unique partnership between two companies has resulted in the railway’s success and growth over the past 20 years.

Founded by Guelph merchants in 1886 through a special act of the Canadian federal government, Guelph Junction Railway began operations in 1888 to unlock the monopoly of the Grand Trunk Railway (now CN), ensuring that manufacturers in Guelph had access to multiple Class I carriers for competitive line-haul rates. The City has been GJR’s sole shareholder since 1908.

Today, GJR/OSRX directly service 18 on-line customers, all of which have direct access to interchanges with CP and CN, with same-day delivery to both, five days a week. GJR operates on 24 miles (38.6 km) of track that runs from Guelph Junction near Campbellville, Ont., to Guelph’s northwest industrial park.

Stephen C. Host photo.

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