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Why Genesee & Wyoming’s North American Traffic Rose in April

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GWR’s North American carloads

Genesee & Wyoming (GWR) receives between 60% to 65% of total revenues from its North American operations. The railroad’s North American railcar traffic expanded 4.9% YoY (year-over-year) on a same-railroad basis in April. New railroads added 518 carloads to North American volumes that month.

On a reported basis, GWR’s carloads in the North American region jumped 3.7% YoY in April 2018. From the last three months ending in April, the railroad’s same railroad operations displayed volume gains.

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GWR’s coal traffic

Coal (ARCH) and coke carload growth have been a matter of concern for Genesee & Wyoming. After declining YoY for many months, the company’s coal (ARLP) carloads reversed the trend in April 2018. During the month, GWR’s North American coal and coke carloads rose 16.3%. The company hauled slightly more than 19,000 coal and coke carloads this April compared to ~16,400 last April. The share of coal and coke carloads in North American total carloads expanded 1.4% to 14.1% in April from 12.7% in April 2017.

Other than coal (UNG) and coke carloads went up 3.3% in April 2018 to a little less than 116,400 from 112,700 in April 2017. Carloads excluding coal (BTU) and coke were 85.9% of total carloads in 2018 compared with 87.3% last year.

Changes in North American commodity groups

In April, the below-mentioned commodity groups reported increased volumes:

  • lumber and forest products
  • metals
  • minerals and stones
  • waste
  • pulp and paper products

The following commodity groups pulled down total volumes in April:

  • agricultural products
  • auto and auto parts
  • chemicals and plastics

Next, we’ll discuss GWR’s United Kingdom and European freight volume trends in April.

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