G&W eyes a sale of global operations to Brookfield

 
  Sulla1 Chief Commissioner

G&W shares have surged on the back of a potential sale of part or the entire US$4.9-billion company to Canada's Brookfield Asset Management. Brookfield also owns the ARC rail network in Western Australia,which, ironically, was previously owned by G&W. It is possible a partial sale might be the method G&W intends to fund its move into Queensland.

https://finance.yahoo.com/news/railroad-owner-genesee-wyoming-exploring-181954825.html?fbclid=IwAR287oQ8nIPKRH5f_9mMV5_KaN_1EVjk7FZS0beZJviB3PA95z5noTFmlTI

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  SinickleBird Chief Train Controller

Location: Qantas Club at Mudgee International Airport
G&W would probably have to pay someone to take over their SA operation (possible exception being Adel-Darwin).
  GS4 Train Controller

Has G&W got a definite contract to haul coal or something else in Queensland?
  james.au Chief Commissioner

Location: Sydney, NSW
Im not sure Queensland is why this transaction is happening.  The North American ops are 85% of GW so i suspect something more about value return to shareholders at a corporate level, or other larger transactions bigger than Qld.
  Sulla1 Chief Commissioner

Has G&W got a definite contract to haul coal or something else in Queensland?
GS4
G&W has been advertising for staff in the Mackay region, so there's a contract out there - nothing has been made public though.
  Sulla1 Chief Commissioner

Im not sure Queensland is why this transaction is happening.  The North American ops are 85% of GW so i suspect something more about value return to shareholders at a corporate level, or other larger transactions bigger than Qld.
james.au


That depends on just how big the planned the Queensland operation is planned to be. Queensland produced 223-million tonnes of coal last year, and Aurizon alone hauled over 150-million tonnes of it. If G&W was to pick up, some or all of the coal produced by a major miner - Glencore for example produces over 40-million tonnes of coal in Queensland - then G&W's Queensland operations could quite easily become it largest tonnage contract, and perhaps most lucrative contract in its global operations.

To fund its $1.14-billion takeover of Glencore's NSW rail operations G&W sold a 49% equity stake to Macquarie in GWA, and that got it 30 locomotives and 894-wagons - to turn around and fund a similar or larger size operation in Queensland is going to need more fancy financing, particularly when as a global company G&W is still 20% smaller than Aurizon and operates on far thinner margins in North America, where most operations are on secondary lines with relatively few mainline hauls. All hypothetically of course - it might be starting with something far smaller and easier than coal, it is after all, a shortline operator.
  x31 Chief Commissioner

Location: gallifrey
God I hope they change out the management.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
God I hope they change out the management.
x31
Maybe you could put your hand up, you seem to know how they should be running their business.

BG
  x31 Chief Commissioner

Location: gallifrey
Nah it is a dying duck in SA
  james.au Chief Commissioner

Location: Sydney, NSW
G&W would probably have to pay someone to take over their SA operation (possible exception being Adel-Darwin).
SinickleBird
They've exited most of it already - not much else to take over.....
  x31 Chief Commissioner

Location: gallifrey
You give GWA a large rail company with a large international company as a customer and several years later you end up with a smaller rail company.  Anyone remember Warwick Fairfax?
  GS4 Train Controller

Has G&W got a definite contract to haul coal or something else in Queensland?
G&W has been advertising for staff in the Mackay region, so there's a contract out there - nothing has been made public though.
Sulla1
Yeah , I had seen the advertisements in the Courier Mail.

We'll have to wait and see  Smile
  GS4 Train Controller

I did a quick google search of G&W Australia and it is owned by 51% G&W and 49% Macquarie Group , , so if Macquarie bought 2% they should have control ... right ??

Maybe you could get a management change .....
  GS4 Train Controller

I had a look at their 3'6" fleet and its fantastic ........ if you're a heritage railway looking for a first generation diesel.

But seriously their GWN's are their only competitive narrow gauge locos and there is only 5 of them.  I'd think it's reasonable to say you need GWN's or Siemens electrics to even have a start at hauling coal in Qld.  

Could the older locos handle the traffic currently hauled by the GWN's thus allowing the GWN's to be transferred to Qld ?  Even then 5 locos is bugger all.
  bingley hall Minister for Railways

Location: Last train to Skaville
I had a look at their 3'6" fleet and its fantastic ........ if you're a heritage railway looking for a first generation diesel.

But seriously their GWN's are their only competitive narrow gauge locos and there is only 5 of them.  I'd think it's reasonable to say you need GWN's or Siemens electrics to even have a start at hauling coal in Qld.  

Could the older locos handle the traffic currently hauled by the GWN's thus allowing the GWN's to be transferred to Qld ?  Even then 5 locos is bugger all.
GS4
It would be a greenfield operation in Qld requiring new locos and wagons

The current 3'6" fleet is suitable for the task allocated to it. The GWNs will have plenty of work to do at Whyalla with a stated increase in traffic there.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
You give GWA a large rail company with a large international company as a customer and several years later you end up with a smaller rail company.  Anyone remember Warwick Fairfax?
x31
"Young Warwick" Fairfax was a spoilt little brat with no understanding of the real world of business and just a couple of degrees under his belt at 26 years of age when he did a number on Fairfax.

GWA is owned by an S&P 400 public company listed on the NYSE which can trace it's origins back over 100 years, has a market capitalisation of over USD$4.5 Billion and revenue of over USD$1.5 Billion.

When you compare the two there is no comparison.

BG
  nswtrains Chief Commissioner

You give GWA a large rail company with a large international company as a customer and several years later you end up with a smaller rail company.  Anyone remember Warwick Fairfax?
x31
Another nonsense opinion from X31. Where do you get these brain bubbles from?
  BrentonGolding Chief Commissioner

Location: Maldon Junction
I did a quick google search of G&W Australia and it is owned by 51% G&W and 49% Macquarie Group , , so if Macquarie bought 2% they should have control ... right ??

Maybe you could get a management change .....
GS4
Ah yes but G&W would have to SELL them that 2% which they would never do unless they actually wanted to cede control to Macquarie.

Standard corporate structure designed to get the most external investment possible without letting go of the reins.

BG

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