(The Atlanta Business Chronicle posted the following article on its website on December 22.)
ATLANTA — Atlanta-based Georgia-Pacific Corp. plans to sell three short-line railroads to Genesee & Wyoming Inc. for $55.6 million.
As part of the agreement, Genesee & Wyoming will provide rail transportation service for 20 years to Georgia-Pacific facilities currently served by these railroad operations.
Greenwich, Conn.-based Genesee & Wyoming will acquire the Chattahoochee Industrial Railroad (CIRR), the Arkansas Louisiana & Mississippi Railroad Co. (ALM) and the Fordyce & Princeton Railroad Co. (F&P).
“Consistent with our ongoing rationalization of non-strategic assets, this transaction is an excellent opportunity to sell assets that are more valuable to another company and use the proceeds to repay debt,” said A.D. “Pete” Correll, Georgia-Pacific chairman and CEO. “With GWI’s [Genesee & Wyoming] expertise, we believe the key manufacturing facilities served by these railroads will continue to receive reliable service that meets their transportation needs.”