Genesee & Wyoming Reports Traffic for July 2015

Genesee & Wyoming Inc. (G&W) (NYSE:GWR) today reported traffic volumes for July 2015.

Based on G&W’s significant increase in operations in the U.K. and continental Europe resulting from the acquisition of the London-based Freightliner Group Limited (Freightliner) in March 2015, G&W is now presenting traffic information in three reportable segments: North American Operations, Australian Operations and U.K./European Operations.

Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, income from operations or net income.

G&W’s three reportable segments are summarized as follows:

• The North American Operations segment is comprised of nine operating regions in the U.S. and Canada. This segment represents approximately 57% of G&W’s total operating revenues and approximately 75% of G&W’s total income from operations.
• The Australian Operations segment is comprised of G&W’s existing operations in Australia and the newly-acquired Freightliner Australia operations. This segment represents approximately 12% of G&W’s total operating revenues and approximately 14% of G&W’s total income from operations. Revenues from Freightliner’s Australia operations are not reported as freight revenues and therefore are not included in this traffic report.
• The U.K./European Operations segment is comprised of Freightliner’s operations in the U.K. and Continental Europe and G&W’s existing European port shunting operations. This segment represents approximately 31% of G&W’s total operating revenues and approximately 11% of G&W’s total income from operations. G&W’s existing European port shunting operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.

July 2015 Traffic

G&W’s traffic in July 2015 was 266,372 carloads, an increase of 89,186 carloads, or 50.3%, compared with July 2014. G&W’s same-railroad traffic in July 2015 was 153,901 carloads, a decrease of 23,285 carloads, or 13.1%, compared with July 2014. The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.

The table below sets forth summary total carloads by segment for July 2015 and July 2014.

July 2015 Highlights by Segment

• North American Operations: Traffic in July 2015 was 139,335 carloads, a decrease of 11.4% compared with July 2014. On a same-railroad basis, traffic declined 20,868 carloads or 13.3%. The decrease was primarily due to reduced shipments of coal & coke, metals and agricultural products traffic.
• Australian Operations: Traffic in July 2015 was 17,508 carloads, a decrease of 12.1% compared with July 2014. The decrease was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines.
• U.K./European Operations: Traffic was 109,529 carloads in July 2015. Traffic in July 2015 was led by intermodal traffic in the U.K. and continental Europe as well as minerals & stone traffic in Poland and the U.K.

The table below sets forth North American Operations carload information for July 2015 and July 2014 by commodity group.

The following highlights relate to North American same-railroad traffic, excluding traffic from the Arkansas Midland Railroad, the Prescott & Northwestern Railroad and the Warren & Saline River Railroad, which were acquired on January 5, 2015.

• North American Operations traffic decreased 20,868 carloads, or 13.3%, primarily due to decreases in coal & coke, metals and agricultural products traffic.
• Coal & coke traffic decreased 9,774 carloads, or 30.8%, primarily due to decreased shipments in G&W’s Midwest, Central, Ohio Valley and Mountain West regions.
• Metals traffic decreased 4,567 carloads, or 28.2%, primarily due to decreased shipments in G&W’s Ohio Valley, Southern and Northeast regions.
• Agricultural products traffic decreased 2,151 carloads, or 11.4%, primarily due to decreased shipments in G&W’s Midwest, Mountain West and Ohio Valley regions.
• All remaining traffic decreased by a net 4,376 carloads.

The table below sets forth Australian Operations carload information for July 2015 and July 2014 by commodity group.

The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines.

The table below sets forth U.K./European Operations carload information for July 2015 by commodity group.

Traffic volumes in the U.K./Europe segment include operations from Freightliner. G&W’s existing European operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.

About G&W

Genesee & Wyoming owns or leases 120 freight railroads worldwide that are organized in 11 operating regions with 7,500 employees and more than 2,500 customers.

• G&W’s nine North American regions serve 41 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
• G&W’s Australia Region provides rail freight services in New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line.
• G&W’s U.K./Europe Region is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in Poland and Germany and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.

G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.

For more information, visit gwrr.com.

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