BOCA RATON, Fla. — RailAmerica, Inc. (RRA), the world’s largest short line and regional railroad operator, today announced in a press release that its Australian railroad, Freight Australia, has signed a new three-year rail transportation contract with Weston Milling, valued at US$8.4 million. Weston Milling, a division of George Weston Foods, is one of Australia’s largest food manufacturers.
Under the terms of the contract, Freight Australia will transport grain from various regions of New South Wales to Weston Milling’s baking facilities located in Sydney. Weston Milling awarded the contract to Freight Australia based on superior customer service, flexibility, and cost-effectiveness.
This is the third new rail transportation contract awarded to Freight Australia in the past month, bringing the total amount of new business to more than US$18 million. As previously reported, Freight Australia recently entered into new rail transportation contracts with Shell Oil Company of Australia Limited and Nestle Purina.
“We are pleased that with the signing of this newest contract we have extended the reach of our Melbourne-based railroad to actively serve the adjacent state of New South Wales,” said Gary O. Marino, Chairman, President, & CEO of RailAmerica. “Our management and staff at Freight Australia are to be congratulated for their recent successful efforts to diversify our Australian revenue base in light of the current drought which has adversely affected our grain haulage in the state of Victoria.”
RailAmerica purchased Freight Australia, a 3,150-mile railroad based in Melbourne, Australia, from the Victorian State government in April 1999 for US$103 million. The Class I-type railroad, which was unprofitable under government ownership at the time of its purchase by RailAmerica, had revenues of US$101 million, operating income of US$22 million, and moved 220,000 carloads of freight in 2001.
RailAmerica, Inc. (www.railamerica.com), the world’s largest short line and regional railroad operator, owns 49 railroads operating approximately 12,800 route miles in the United States, Canada, Australia and Chile. In North America, the Company’s railroads operate in 27 states and six Canadian provinces. Internationally, the Company operates 4,300 route miles under track access arrangements in Australia and Argentina. RailAmerica is a member of the Russell 2000(R) Index and in October 2001 was ranked 85th on Forbes magazine’s list of the 200 Best Small Companies in America.