(The following appeared on the Progressive Railroading website on April 15.)
Genesee & Wyoming Inc. (GWI) recently acquired The Netherlands’ Rotterdam Rail Feeding for $21.4 million in cash and up to $2.4 million in additional payments during the next three years.
Rotterdam Rail Feeding provides short-haul rail and switching services at the Port of Rotterdam for long-haul railroads and industrial customers. The company also provides locomotives, operating personnel and rail-related services to track construction firms, maintenance companies and government-owned infrastructure operators in The Netherlands. Karel Poiesz will continue to serve as Rotterdam Rail Feeding’s managing director.
DVB Capital Markets L.L.C. served as GWI’s financial advisor for the acquisition, which is a key investment for several reasons, said GWI Chief Executive Officer John Hellmann in a prepared statement.
“First, we are extending our U.S. port railroad franchise to serve the busiest container and bulk port in Europe,” he said. “Second, we are executing a strategy that partners with the incumbent European railroads to provide the same customer-focused, short-haul service that is the essence of our North American short-line business model.”