Tuesday, September 05, 2017

GWI, SEACOR to own, operate rail ferry service

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One of two 585-foot roll-on/roll-off rail ferries that can transport approximately 115 railcars via four-day CG Railway service between the ports of Mobile, Ala., and Coatzacoalcos, Veracruz, Mexico. One of two 585-foot roll-on/roll-off rail ferries that can transport approximately 115 railcars via four-day CG Railway service between the ports of Mobile, Ala., and Coatzacoalcos, Veracruz, Mexico. Business Wire

Genessee & Wyoming Inc. (GWI) and SEACOR Holdings Inc. will own and operate CG Railway (CGR), LCC, through a 50/50 joint venture.

 

CGR is a recent subsidiary of SEACOR acquired through the company's acquisition of International Shipping Corporation.

CGR operates a freight railroad providing four-day rail ferry service between the ports of Mobile, Ala., and Coatzacoalcos, Veracruz, Mexico. The JV notes that the rail ferry presents a faster and more cost-effective alternative to the traditional land route between the southeast U.S. and southeast Mexico. The joint venture plans to immediately invest in the existing rail ferry vessels to enhance service reliability.


Established in 2001, the ferry service currently transports approximately 10,000 annual carloads of commodities such as chemicals and plastics, fructose and refined sugar, steel and pulp and paper.


"CGR creates a natural extension of our rail services to reach the rapidly growing market in central and southern Mexico," says GWI Chief Commercial Officer Michael Miller. "We look forward to working with Ferrosur and Ferromex to expand the current customer base. Since GWI's shortline railroads maintain close commercial relationships with customers and connecting Class 1 railroads across the southeastern U.S., we also look forward to offering a more direct option for these shippers and others east of the Mississippi to reach central and southern Mexico."