Posted by ShortlinesUSA
on 7/24/2012, 10:47 am, in reply to "Re: GWNR buys out RAIL Amer."
Keep in mind G&W is taking on a heavy debt load for the first couple of years, if this deal goes as they envision. While I don't disagree acquisition of these roads would give G&W a powerhouse of a regional in the Northeast and Ohio Valley (and I suspect they well know this), they simply will not have the available capital to acquire a property the size of the WLE. Taking on RailAmerica is going to be a big transition, and I believe you'll see more in the way of consolidation of management positions and operational functions (such as dispatching and customer service) than acquistions and expansion. There may even be a sell off of smaller low-performing properties.
G&W admitted in their teleconference yesterday there was little in the way of increased haulage through combination of their system with RailAmerica's, because there are few places where they have interchanging lines. G&W said they intend to gain operational efficiencies through reduction in duplicate functions.
That says to me the folks who run the trains on RailAmerica properties will be fine, but anyone in a management or clerical function might find their job moved or eliminated as G&W seeks to consolidate as many job functions as possible.
Mike Derrick
Alexandria, VA
http://www.shortlinesusa.com
--Previous Message--
: i wonder who will be next?
: WLE-PWV, SWP-AVR?
: Looking at GWI's route operations
: system map these could fit well.
: Maybe the Brewster people will take
: the buy-out
: big money if offered. i don't know,
: just a random thought.
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: --Previous Message--
: For your info.
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: http://phx.corporate-ir.net/phoenix.zhtml?c=64426&p=irol-newsArticle&ID=1717069&highlight=
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