Farewell to the P&W: Genesee & Wyoming confirms purchase

[RickKfoury]

Another New England railroad has become part of the Genesee & Wyoming giant. Providence & Worcester has announced that G&W has agreed to purchase for $126 million.

http://finance.yahoo.com/news/genesee-wyoming-inc-enters-agreement-123000245.html

[NStrains]

I guess that means these P&W autoracks I just downloaded the other day are gonna have to go back for a G&W style repaint haha.

[DrewG]

In a way I feel that's a shame. It's always nice to see shortlines not owned by a massive organization like GW.

[imnew]

In a way I feel that's a shame. It's always nice to see shortlines not owned by a massive organization like GW.

I agree!

[RickKfoury]

In a way I feel that's a shame. It's always nice to see shortlines not owned by a massive organization like GW.

Especially the P&W, one that was very successful in expanding and providing excellent service to the region. A sad day indeed

[JohnS]

I work for G&W and my fellow employees and I can't understand why they keep going after these shortlines when the ones they have need infrastructure upgrades and repairs. 126m would have been a big help to many of these ailing shortlines they already own

[buzz456]

Well they are making a bucket of money so one can only presume that management feels that the infrastructure is in "good enough" shape to operate. Additionally if they are borrowing for acquisition it's a whole lot easier to deal with the money lenders in the temple if you are buying something tangible than something as silly as "we want to borrow to upgrade". They don't seem to understand that nowadays.

[JohnS]

Well they are making a bucket of money so one can only presume that management feels that the infrastructure is in "good enough" shape to operate. Additionally if they are borrowing for acquisition it's a whole lot easier to deal with the money lenders in the temple if you are buying something tangible than something as silly as "we want to borrow to upgrade". They don't seem to understand that nowadays.

Yes it seems easier to get the bank bonding for a purchase then anything else in this industry.

[buzz456]

Not limited to the rail industry in this day and age.

[BillS]

Just hoping that P&W doesn't go the way of MEC, B&M, and D&H when purchased by Guilford. More and more spurs, divisions, etc. disappeared. Now just a ghost of what it used to be.

[buzz456]

It's all about the money. Not to be political but if we could only get business cranked up in America again.....sigh.

[BillS]

It's all about the money. Not to be political but if we could only get business cranked up in America again.....sigh.

+1 AGREED!!!

[jmslakings]

I have a question. Speaking about G&W. How much bigger do they have to become before they are considered a class 1 railroad? How does that work?

[NStrains]

From Trains online magazine...

"As of January 2006, a Class 1 railroad was defined as one that generates revenues of $289.4 million or more each year. Class 2 railroads are those with annual revenues between $20.5 million and $289.4 million. Class 3 railroads have earnings of less than $20.5 million.

For Class 2 and 3 carriers, the Association of American Railroads, the industry's trade group, developed its own system of categorizing railroads as either Regional or Local. Regional railroads are those with annual revenues that range between $40 million and $256.4 million and operate at least 350 miles of track. Local railroads are defined as having revenues below $40 million and less than 350 route miles."

[goddrauG]

The problem with the G&W is they are a collection of shortlines, rather than one big collective railroad.
Or maybe I'm wrong, and they could identify as one railroad. I have no clue.