News on Rail after the close:
Thursday March 2, 4:45 pm Eastern Time
Company Press Release
RailAmerica's Australian Railroad Gains Additional Grain Business
Changes Name to Freight Australia
BOCA RATON, Fla.--(BUSINESS WIRE)--March 2, 2000--- RailAmerica, Inc. (Nasdaq:RAIL - news), the world's largest operator of short line and regional railroads, today announced that its Australian-based railroad, Freight Victoria, has commenced grain hauling operations in New South Wales under a contract with AWB Limited, a subsidiary of the Australian Wheat Board.
This new rail service provides grain producers in the state of New South Wales with a cost-efficient means of getting their export products to overseas customers. Freight Victoria's success in breaking into interstate markets has also driven a name change for the company. Effective today, the company will adopt the new name Freight Australia.
Under terms of its contract, Freight Australia will operate two locomotives and 40 specialized railcars to haul approximately 300,000 tons of grain between central and southern New South Wales receiving points and Port Kembla, using existing lines under license from the Rail Access Corporation. These moves are additional business covered under Freight Australia's existing five-year contract with AWB Limited. This is Freight Australia's second major business `win' in New South Wales and follows the commencement of new log train service late last year. Under that contract, plantation timber is hauled for export from terminals near Queanbeyan and Bathurst to Port Kembla, and in Victoria between Morwell and Geelong.
Commenting on the new contract, Gary O. Marino, Chairman, President and CEO of RailAmerica, said, ``Our management team at Freight Australia has done a superb job at securing new business and building a solid base for this railroad to become the premier rail freight operator in Australia. In addition to the innovative log train service introduced late last year, Freight Australia reopened the Sale to Bairnsdale line for timber haulage and is investigating similar growth opportunities in southwest Victoria and southeast South Australia that will expand its rail service to other regions.'
Freight Australia's Chief Executive Officer Marinus van Onselen noted, ``The name change does not mean Freight Australia is in any sense abandoning Victoria, nor will company activity in the state diminish. Freight Australia will continue to be Melbourne-headquartered and regionally-focused - after all, we move over seven million tons of local and international freight by rail each year in Victoria. However, since we acquired V/Line Freight from the Victorian government in May of last year, we have been steadily building our business across traditional state boundaries and it makes a great deal of sense to have the company name reflect our expanding horizons. I am pleased to say that in less than twelve months we have simply outgrown our original name.'
RailAmerica, Inc. (www.railamerica.com), the world's largest operator of short line and regional railroads, owns or has equity interests in 50 short line and regional railroads operating more than 12,500 route miles in the United States, Canada, Australia and the Republic of Chile. The Company also owns Kalyn/Siebert, L.P. and Kalyn/Siebert, Canada, Inc., specialty truck trailer manufacturers with production facilities in Gatesville, Texas and Trois-Rivieres, Quebec, Canada.
This press release contains forward-looking statements regarding future events and the performance of RailAmerica that involve risks and uncertainties that could cause actual results to differ materially including, but not limited to, failure to achieve expected synergies, failure to successfully integrate operations, economic conditions, customer demand, increased competition in the relevant market, and others. We refer you to the documents that RailAmerica files from time to time with the Securities and Exchange Commission, such as the Form 10-K, Form 10-Q and Form 8-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.
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Contact:
RailAmerica, Boca Raton
Wayne A. August March 1, 2000
Director of Investor Relations and Financial Planning
561/994-6015 |
