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Analyzing Genesee & Wyoming’s Carloads in January

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Genesee & Wyoming

In January 2018, Genesee & Wyoming’s (GWR) combined carloads from all of the reporting segments fell 0.6%—compared to the same month last year. On a same-railroad operations basis, the company hauled 276,600 railcars in January 2018—compared to 278,300 carloads in January 2017.

Acquisitions from new railroads added 501 carloads in January 2018, which took the reported number over 277,100 carloads. On a reported basis, the company’s overall carloads were down 0.4% in January 2018. Coal (BTU) and coke carloads declined 5.9% to ~57,600 units from 61,200 units in January 2017.

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Segmental share in carloads in January 2018

The carloads from North American operations accounted for 49.1% of Genesee & Wyoming’s total carloads. The same share was up almost 1% to 50% in January 2017. The United Kingdom and European operations’ freight volumes were 33.1% of the total carloads. The United Kingdom and European operations’ share in combined carloads rose 1.4% in 2018 from 31.7% in 2017. The share of Australian operations’ freight volumes was down 1% to 17.8% in 2018 from 18.8% in 2017.

Looking at the year-over-year carload data in December 2017, Genesee & Wyoming’s same-railroad carloads were down 5.9%. In December, the company moved 254,700 railcars—compared to over 270,500 railcars in December 2016. Recently, there has been a declining trend in Genesee & Wyoming’s same-railroad operations—excluding acquisitions.

Genesee & Wyoming is the largest short-line operator in the US. A short-line railroad operates over a short distance and connects to the Class II or Class I railroads. Genesee & Wyoming isn’t a US Class I railroad. However, the company is often compared with Class I railroads due to its scale of operations. In the past few years, Genesee & Wyoming has grown due to numerous acquisitions.

ETF investment

Benefits from the Tax Cuts and Jobs Act are expected to boost the capital expenditure in the US transportation and logistics sector. Investors interested in transportation stocks can consider investing in the First Trust Industrials/Producer Durables AlphaDEX Fund (FXR). FXR holds 3.5% in US trucking (JBHT) (WERN) companies and 15.8% in US airlines (DAL).

In the next part, we’ll discuss Genesee & Wyoming’s North American operations.

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