Alice Springs to Darwin Rail Project Reaches Financial Close; Australian Railroad Group to Transport Construction Materials and Operate Railroad

Apr 20, 2001, 01:00 ET from Genesee & Wyoming Inc.

    GREENWICH, Conn., April 20 /PRNewswire Interactive News Release/ --
 Genesee & Wyoming Inc. (GWI) (Nasdaq: GNWR) announced today that the Asia
 Pacific Transport Consortium (APTC) has completed the arrangement of debt and
 equity capital to finance a US$650 million project to build, own and operate
 an 885-mile rail line from Alice Springs to Darwin in the Northern Territory
 of Australia.  GWI's 50% owned subsidiary, the Australian Railroad Group Pty.
 Ltd. (ARG), is a participant in APTC which is led by Halliburton/Brown & Root
 and also includes Barclay Mowlem Construction, John Holland Group, Macmahon
 Holdings and S.A.N.T. Holding.  The rail line is expected to be completed in
 early 2004.
     The US$650 million project includes US$390 million of mezzanine and senior
 debt financing, which has been underwritten by ABN AMRO, Australia and New
 Zealand Banking Group (ANZ), Macquarie Bank, RBS Australia (Royal Bank of
 Scotland) and SG Australia (Societe Generale).  In addition, US$240 million
 has been provided by government grants from the Commonwealth of Australia and
 the state governments of South Australia and the Northern Territory.  Equity
 investors in the project include the members of APTC as well as National Asset
 Management Limited and Colonial First State.  The Australian Railroad Group
 will invest US$3.1 million for a 2.6% equity interest in the project.
     Once construction of the rail line is complete, APTC will operate a new
 import-export freight company, FreightLink, which will be responsible for
 freight operations on the railroad including the operation of terminals
 located in Adelaide, Alice Springs, Tennant Creek, Katherine, Darwin and the
 Port of Darwin.  Goods will be transported between Adelaide and Darwin in
 approximately 40 hours and will link with shipping services to and from Asia
 through the deep water harbor in Darwin.  It is expected that the rail line
 will provide a faster and cheaper distribution alternative for importers and
 exporters to Asia versus current ocean shipments.  The Australian Railroad
 Group has signed a long-term contract with FreightLink to be the rail
 operator.
     In addition, ARG has been awarded a significant transportation contract to
 carry rail and certain other track materials during the two and one-half year
 construction period.  Overall, the construction project will require an
 estimated 145,000 tons of steel rail, 2.3 million railroad ties, 120 new
 bridges, and other track materials, all of which will be transported by rail
 or truck.  ARG expects to start shipping construction materials in the fourth
 quarter of 2001 and to ramp-up over the first half of 2002.
     In the first quarter of 2001, GWI will record a purchase price adjustment
 associated with the December 2000 sale of 50% of its interest in APTC to
 Wesfarmers Limited, its joint venture partner in ARG.  The impact of this
 purchase price adjustment will be a one-time gain for GWI as well as a cash
 payment.  In addition, GWI expects that during the construction phase and over
 the long-term operation of the rail line, the project will be accretive to its
 earnings through its 50% ownership in ARG.  GWI will detail the financial
 impact of the project during its first quarter earnings call on May 1, 2001.
     Mortimer B. Fuller III, Chairman and CEO of GWI and Chairman of ARG
 commented, "As a member of the Asia Pacific Transport Consortium, we are
 pleased to be participating in a project of national significance in Australia
 that was originally conceived over a century ago.  During the construction
 period and as operator of the rail line, we look forward to providing the same
 high quality service that we provide shippers throughout Australia today."
 
     GWI is a leading operator of short line and regional freight railroads in
 the United States, Canada, Mexico, Australia and Bolivia, and provides freight
 car switching and related services to industrial companies that have extensive
 railroad facilities within their complexes.  The Company operates in five
 countries on three continents over 7,700 miles of owned and leased track.  It
 also operates over an additional 2,700 miles under track access arrangements.
 In October 2000, the Company was ranked 99th on Forbes magazine's list of the
 200 best small companies in America.
 
     This press release contains forward-looking statements regarding future
 events and the future performance of Genesee & Wyoming Inc. that involve risks
 and uncertainties that could cause actual results to differ materially
 including, but not limited to, economic conditions, customer demand, increased
 competition in the relevant market, and others.  The Company refers you to the
 documents that Genesee & Wyoming Inc. files from time to time with the
 Securities and Exchange Commission, such as the Company's Forms 10-Q and 10-K
 which contain additional important factors that could cause its actual results
 to differ from its current expectations and from the forward-looking
 statements contained in this press release.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57281440
 
 

SOURCE Genesee & Wyoming Inc.
    GREENWICH, Conn., April 20 /PRNewswire Interactive News Release/ --
 Genesee & Wyoming Inc. (GWI) (Nasdaq: GNWR) announced today that the Asia
 Pacific Transport Consortium (APTC) has completed the arrangement of debt and
 equity capital to finance a US$650 million project to build, own and operate
 an 885-mile rail line from Alice Springs to Darwin in the Northern Territory
 of Australia.  GWI's 50% owned subsidiary, the Australian Railroad Group Pty.
 Ltd. (ARG), is a participant in APTC which is led by Halliburton/Brown & Root
 and also includes Barclay Mowlem Construction, John Holland Group, Macmahon
 Holdings and S.A.N.T. Holding.  The rail line is expected to be completed in
 early 2004.
     The US$650 million project includes US$390 million of mezzanine and senior
 debt financing, which has been underwritten by ABN AMRO, Australia and New
 Zealand Banking Group (ANZ), Macquarie Bank, RBS Australia (Royal Bank of
 Scotland) and SG Australia (Societe Generale).  In addition, US$240 million
 has been provided by government grants from the Commonwealth of Australia and
 the state governments of South Australia and the Northern Territory.  Equity
 investors in the project include the members of APTC as well as National Asset
 Management Limited and Colonial First State.  The Australian Railroad Group
 will invest US$3.1 million for a 2.6% equity interest in the project.
     Once construction of the rail line is complete, APTC will operate a new
 import-export freight company, FreightLink, which will be responsible for
 freight operations on the railroad including the operation of terminals
 located in Adelaide, Alice Springs, Tennant Creek, Katherine, Darwin and the
 Port of Darwin.  Goods will be transported between Adelaide and Darwin in
 approximately 40 hours and will link with shipping services to and from Asia
 through the deep water harbor in Darwin.  It is expected that the rail line
 will provide a faster and cheaper distribution alternative for importers and
 exporters to Asia versus current ocean shipments.  The Australian Railroad
 Group has signed a long-term contract with FreightLink to be the rail
 operator.
     In addition, ARG has been awarded a significant transportation contract to
 carry rail and certain other track materials during the two and one-half year
 construction period.  Overall, the construction project will require an
 estimated 145,000 tons of steel rail, 2.3 million railroad ties, 120 new
 bridges, and other track materials, all of which will be transported by rail
 or truck.  ARG expects to start shipping construction materials in the fourth
 quarter of 2001 and to ramp-up over the first half of 2002.
     In the first quarter of 2001, GWI will record a purchase price adjustment
 associated with the December 2000 sale of 50% of its interest in APTC to
 Wesfarmers Limited, its joint venture partner in ARG.  The impact of this
 purchase price adjustment will be a one-time gain for GWI as well as a cash
 payment.  In addition, GWI expects that during the construction phase and over
 the long-term operation of the rail line, the project will be accretive to its
 earnings through its 50% ownership in ARG.  GWI will detail the financial
 impact of the project during its first quarter earnings call on May 1, 2001.
     Mortimer B. Fuller III, Chairman and CEO of GWI and Chairman of ARG
 commented, "As a member of the Asia Pacific Transport Consortium, we are
 pleased to be participating in a project of national significance in Australia
 that was originally conceived over a century ago.  During the construction
 period and as operator of the rail line, we look forward to providing the same
 high quality service that we provide shippers throughout Australia today."
 
     GWI is a leading operator of short line and regional freight railroads in
 the United States, Canada, Mexico, Australia and Bolivia, and provides freight
 car switching and related services to industrial companies that have extensive
 railroad facilities within their complexes.  The Company operates in five
 countries on three continents over 7,700 miles of owned and leased track.  It
 also operates over an additional 2,700 miles under track access arrangements.
 In October 2000, the Company was ranked 99th on Forbes magazine's list of the
 200 best small companies in America.
 
     This press release contains forward-looking statements regarding future
 events and the future performance of Genesee & Wyoming Inc. that involve risks
 and uncertainties that could cause actual results to differ materially
 including, but not limited to, economic conditions, customer demand, increased
 competition in the relevant market, and others.  The Company refers you to the
 documents that Genesee & Wyoming Inc. files from time to time with the
 Securities and Exchange Commission, such as the Company's Forms 10-Q and 10-K
 which contain additional important factors that could cause its actual results
 to differ from its current expectations and from the forward-looking
 statements contained in this press release.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57281440
 
 SOURCE  Genesee & Wyoming Inc.