Financial news
Genesee & Wyoming to acquire RailAmerica for $US 1.4bn N
ORTH America’s two largest shortline and
regional rail operators are to merge their operations following the announcement by Genesee & Wyoming (GWI) on July 23 that it had entered into an agreement to acquire RailAmerica at a cost of
around $US 1.4bn. GWI says the acquisition
will strengthen its ability to serve industrial customers and Class I railways while yielding significant synergies. The takeover means GWI will operate 108 railways in 37 US states and three Canadian
provinces covering more than 19,000 route-km.
GWI expects to fund the transaction and simultaneous refinancing of its existing debt with approximately $US 2bn of new debt and around $800m of equity or equity- linked securities.
SNCF upbeat after “better than expected” first half F
RENCH National Railways (SNCF) unveiled
its financial results for the first half of 2012 on July 26, with group revenues rising 3.1% year-on-year to ƒ16.8bn, despite further retrenchment in its freight activities. Overall passenger traffic
rose 0.6% compared with the first half of 2011. Long- distance division SNCF Voyages saw revenues climb 4.2% year-on year, although passenger numbers fell 1.1% on domestic TGV services, primarily due to the economic slowdown, poor weather, and additional public holidays which reduced demand for business travel. However, this was offset by a 3.7% increase
in international traffic, which was boosted by new services to Germany and Switzerland via TGV Rhin-Rhône, the launch of new TGV services to Italy, and strong performance by Eurostar.
Ridership on TER regional services rose 5.7% year-on-year, while Transilien Paris suburban services saw a 2.4% increase. Logistics subsidiary SNCF Geodis continued to struggle in the face of tough economic conditions, with overall railfreight revenues dropping 9.7%. French railfreight business Fret SNCF saw 10.1% shaved off its revenues compared with a year earlier. Group investment in the first half reached ƒ1.16bn, of
control and investment initiatives while deploying an increasingly active sales and marketing policy to promote our services in France and abroad,” says SNCF president Mr Guillaume Pepy. “As a result, and despite a very uncertain outlook, we expect to meet and perhaps even exceed our full year economic targets for 2012.”
EC authorises state aid for Austrian railfreight
“The acquisition of RailAmerica by GWI is a straightforward combination of two organisations with overlapping holding company structures and complementary geographies,” says Mr Jack Hellmann, president and CEO of GWI.
which 64% was for new rolling stock, and 36% for station upgrades, service centres, passenger information systems, maintenance equipment, and IT systems. Net profits for the first half reached ƒ253m, while SNCF’s net debt stood at ƒ9bn on June 30. “We are pursuing cost
MTR eyes expansion as revenues rise
TR CORPORATION says it is committed to expanding its activities in Europe, and in particular Britain, after revealing a 6.1% increase in first-half revenues. Total group revenues
M
reached $HK 17.1bn ($US 2.2bn), while revenues outside Hong Kong rose 2.66% year- on-year to $HK 6.33bn. This means 36.9% of turnover in the first half came from international operations, with European activities now contributing 9% of revenues. MTR is currently bidding for Britain’s Essex Thameside and Thameslink franchises. Among its existing
international portfolio, MTR operates the Stockholm metro concession, Beijing Line 4, and Shenzhen’s Longhua Line. It is also lead shareholder in Metro Trains Melbourne, and operates the London Overground network in a joint venture with German Rail.
Transnet to launch tender for 599 electric locomotives
T T 24 HE European Commission (EC) has
authorised an Austrian government scheme to subsidise railfreight operations for five years from December. According to the EC, the
ƒ1.18bn programme is compliant with EU rules on state aid and the EC Guidelines for State Aid to
Railway Companies because it creates a level playing field between railfreight and road hauliers, allowing the state to compensate railfreight companies for additional operating costs not incurred by road transport. It is claimed this will ensure higher railfreight volumes without distorting competition.
Rail currently has a 36%
share of the Austrian freight market, and the government is keen to maintain or improve this position. The current state aid scheme is due to expire in December, meaning that the Austrian government was legally obliged to notify the EU of its plans to continue the programme.
RANSNET Freight Rail (TFR) is preparing to invite tenders for 599 new dual-voltage electric locomotives for use by its general freight division. The first 65 units will be
delivered in 2015, and 130 locomotives will be delivered each year between 2016 and 2018, with the final 144 following in 2019.
In addition, TFR plans to
order a further 112 class 19E electric locomotives for the Richards Bay coal line and an additional 23 class 15E 50kV ac units for the Sishen-Saldanha iron-ore corridor.
IRJ September 2012
Photo: Erwin Reidinger
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