Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that GWI and a
newly formed GWI subsidiary, KeRail Inc. (KeRail), have entered into a
long-term agreement with Tata Steel Minerals Canada Ltd. (TSMC) for
KeRail to provide rail transportation services to the 4.2 million tons
per annum direct shipping iron ore mine TSMC is developing near
Schefferville, Quebec in the Labrador Trough (the Mine). In addition,
KeRail will construct an approximately 21-kilometer rail line (Rail
Line) that will connect TSMC’s mine to the Tshiuetin Rail Transportation
(TSH) interchange point in Schefferville.
Operated as part of GWI's Canada Region, KeRail will haul unit trains of
iron ore from its rail connection with the Mine that will then travel
over three privately owned railways to the Port of Sept-Iles for export
primarily to Tata Steel’s European operations. The agreement and
construction is contingent on certain conditions being met, including
the receipt of necessary governmental permits and approvals. Once the
track construction has commenced, which is anticipated in the third or
fourth quarter of 2012, the Rail Line is expected to be completed three
to six months thereafter.
The new contract with TSMC will further expand GWI’s operating presence
in the Labrador Trough where GWI subsidiary Western Labrador Rail
Services currently provides rail services to both Cliffs Natural
Resources Inc. (NYSE: CLF) and Labrador Iron Mines Holdings Limited
(TSE: LIM).
About GWI
GWI owns and operates short line and regional freight
railroads and provides railcar switching services in the United States,
Australia, Canada, the Netherlands and Belgium. In addition, we operate
the Tarcoola to Darwin rail line, which links the Port of Darwin to the
Australian interstate rail network in South Australia. Operations
currently include 66 railroads organized in 10 regions, with more than
7,600 miles of owned and leased track and approximately 1,400 additional
miles under track access arrangements. We provide rail service at 17
ports in North America and Europe and perform contract coal loading and
railcar switching for industrial customers.
About Tata Steel Minerals Canada Limited
Tata Steel Minerals Canada
Limited (TSMC) is a joint venture established in October 2010 by Tata
Steel Ltd. and New Millennium Iron Corp. (TSX: NML). Tata Steel owns 80%
and NML owns 20% stake in TSMC. TSMC is part of the Tata Steel Group of
companies which is a Fortune 500 company and is among the top 10
producers of steel in the world. The Tata Steel group has over 80,000
employees spread over 5 continents. TSMC is developing iron ore deposits
in Quebec and Newfoundland & Labrador in Canada.
TSMC is currently engaged in two main activities:
DSO Project
TSMC is developing the Direct Shipping Ore (DSO)
project which involves mining, crushing, washing, screening and shipping
the sinter fines and pellet fines to Tata Steel's European steel making
facilities.
Taconite Project
TSMC is also involved with New Millennium Iron
Corp. in undertaking a Feasibility Study of the LabMag and KeMag iron
ore deposits which form a part of the 150-km long Millennium Iron Range
in northern Canada.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Genesee &
Wyoming's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report on Form 10-K for the most
recently ended fiscal year.
