Dive Brief:
- Genesee & Wyoming (G&W) of Darien, CT, which runs 121 freight railroads worldwide, will acquire MA-based Providence and Worcester Railroad Company (P&W) for $126 million. The deal is scheduled to close in the fourth quarter, pending approval and customary closing conditions.
- P&W operates in Rhode Island, Massachusetts, Connecticut and New York, and is contiguous with G&W’s New England Central Railroad and Connecticut Southern Railroad. It provides rail service to three New England ports and a U.S. Customs bonded intermodal terminal in Worcester.
- G&W says the deal should enhance its ability to serve customers and Class 1 partners in New England's competitive rail market, generate new commercial opportunities while producing significant cost savings through overhead and long-term network synergies.
Dive Insight:
The deal will help G&W expand its Northeast U.S. intermodal connections, reaching customers through major freight carriers operating at busy New York and New Jersey port terminals, JOC reports. It also might allow G&W to serve customers aiming to avoid occasional congestion at those ports by using smaller New England ports.
G&W was reportedly exploring a number of acquisition opportunities earlier in the month as the company osught to consolidate its network in the northeast. Former State Rep. David McCluskey told the Hartford Courant the acquisition was great news for CT since there was previously no company with access to both the New Haven and New London ports that could upgrade the lines.
In addition, the P&W deal will provide G&W access to stretches of passenger and commuter tracks run by Amtrak and Metro-North.
