G&W to sell stake in Australian operations

[David Benton]

"TORONTO — Genesee & Wyoming is pulling out of Australia.

The short line holding company is selling its 51% stake in its Australia operations, which serves New South Wales, the Northern Territory, and South Australia, including the 1,400-mile Tarcoola to Darwin rail line."
http://trn.trains.com/news/news-wire/20 ... es-private

[Jeff Smith]

Thanks for posting; I"m cross-threading to G&W and then returning.

I think I saw something on this as well; can't remember, but were there regulatory difficulties down under for G&W? Not surprised in any case with the potential acquisition of G&W; rationalizing the system I suppose, cashing out, etc.

[NorthWest]

The main issue is that Brookfield has substantial investments in other Australian railway elements, including ownership of much of the Western Australia network. If there weren't potential competition concerns I doubt G&WA would be sold off.

It will be interesting to see if the brand will be changed in a couple years.

[David Benton]

Not sure Jeff, but I doubt there is any expectation of competition on the Darwin route.Perhaps in lieu of that , there is some kind of price control or capping in place. Will research the Australian franchising system when I get time , as I am interested how it works too.

[David Benton]

https://en.wikipedia.org/wiki/Genesee_% ... _Australia
Wiki's take.