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Press release from Business Wire

Genesee & Wyoming Inc. Reports Traffic for September 2012 and the Third Quarter of 2012

Thursday, October 11, 2012

Genesee & Wyoming Inc. Reports Traffic for September 2012 and the Third Quarter of 201217:00 EDT Thursday, October 11, 2012 GREENWICH, Conn. (Business Wire) -- Genesee & Wyoming Inc. (GWI) (NYSE: GWR) today reported traffic volumes for September 2012 and the third quarter of 2012. GWI's traffic in September 2012 was 79,239 carloads, a decrease of 4,369 carloads, or 5.2 percent, compared with September 2011. GWI's traffic in the third quarter of 2012 was 242,783 carloads, a decrease of 13,407 carloads, or 5.2 percent, compared to the third quarter of 2011. The table below sets forth consolidated carloading information for September 2012 and September 2011. Additional carload information for GWI's North American and Australian operations is included as an exhibit to this press release.                     Genesee & Wyoming Inc. by Commodity Group September September 2012 2011 % Change Consolidated: Coal & Coke 18,095 18,821 -3.9% Minerals & Stone 10,927 12,459 -12.3% Pulp & Paper 8,323 8,024 3.7% Metals 7,705 7,720 -0.2% Lumber & Forest Products 6,266 5,481 14.3% Intermodal* 6,187 5,381 15.0% Farm & Food Products 5,922 9,100 -34.9% Chemicals & Plastics 5,173 5,238 -1.2% Metallic Ores** 3,965 3,122 27.0% Petroleum Products 2,753 2,494 10.4% Autos & Auto Parts 904 718 25.9% Other 3,019 5,050 -40.2% Total carloads 79,239 83,608 -5.2%   * - Represents intermodal units ** - Includes carloads and intermodal units   Excluding 129 carloads from the Hilton Albany Railroad, Inc.(HAL), which commenced operations on January 1, 2012, and 1,230 carloads from the Columbus & Chattahoochee Railroad (CCH), which commenced operations on July 1, 2012, same-railroad traffic in September 2012 decreased 5,728 carloads, or 6.9 percent, compared with September 2011. Farm & food products traffic decreased 3,248 carloads primarily due to reduced shipments in GWI's Australia Region. The shipment decline in the Australia Region was primarily due to an accelerated shipping schedule earlier in 2012, as well as a mechanical failure at an export grain terminal in Adelaide, South Australia. GWI's other commodity group traffic decreased 2,033 carloads in September 2012 primarily due to no overhead coal shipments in GWI's Ohio Region. Minerals & stone traffic decreased 1,740 carloads primarily due to reduced rock salt shipments in GWI's New York/Pennsylvania Region as a result of warm winter weather last year. All remaining traffic increased by a net 1,293 carloads. The table below sets forth consolidated carloading information for the third quarter of 2012 and the third quarter of 2011. Additional carload information for GWI's North American and Australian operations is included as an exhibit to this press release.                     Genesee & Wyoming Inc. by Commodity Group 3rd Qtr 3rd Qtr 2012 2011 % Change Consolidated: Coal & Coke 52,990 53,553 -1.1% Minerals & Stone 32,713 38,242 -14.5% Pulp & Paper 27,042 24,893 8.6% Farm & Food Products 22,369 30,843 -27.5% Metals 22,182 22,748 -2.5% Lumber & Forest Products 18,708 16,614 12.6% Intermodal* 17,754 15,833 12.1% Chemicals & Plastics 16,665 15,449 7.9% Metallic Ores** 11,707 8,917 31.3% Petroleum Products 8,038 7,576 6.1% Autos & Auto Parts 2,574 2,408 6.9% Other 10,041 19,114 -47.5% Total carloads 242,783 256,190 -5.2%   * - Represents intermodal units ** - Includes carloads and intermodal units   Excluding 2,432 carloads from the Arizona Eastern Railway (AZER) acquisition, which closed September 1, 2011 and 4,752 combined carloads from HAL and CCH, same-railroad traffic in the third quarter of 2012 decreased 20,591 carloads, or 8.0 percent, compared with the third quarter of 2011. The traffic decrease was principally due to decreases of 9,129 carloads of other commodity group traffic (primarily overhead coal in GWI's Ohio Region), 8,689 carloads of farm & food products traffic (primarily grain in GWI's Australia Region), and 6,283 carloads of minerals & stone traffic (primarily salt in GWI's New York/Pennsylvania Region). All remaining traffic increased by a net 3,510 carloads. Carload Reporting for Metallic Ores Traffic Effective January 1, 2012, a portion of GWI's metallic ores commodity group includes intermodal containers as a result of a change in rail logistics and equipment for a customer in GWI's Australia Region. The impact of this change increased traffic by 517 carloads in September 2012 and 1,572 carloads in the third quarter of 2012. RailAmerica, Inc. Acquisition and Carload Reporting On October 1, 2012, GWI acquired RailAmerica, Inc. (RailAmerica), at which time RailAmerica simultaneously deregistered its common stock and delisted from the New York Stock Exchange. Immediately following the closing of the acquisition, control of RailAmerica was placed into a voting trust with R. Lawrence McCaffrey appointed as trustee. The trust will remain in effect until the U.S. Surface Transportation Board (STB) issues its decision on GWI's application to control RailAmerica and its railroads, which decision could be as early as the fourth quarter of 2012 or as late as the first quarter of 2013. For the pendency of the trust, GWI will account for its ownership of RailAmerica under the equity method of accounting and RailAmerica will continue to report its carloadings independent of those of GWI. RailAmerica carloadings for September 2012 and for the third quarter of 2012 are for periods that GWI did not own RailAmerica and therefore GWI's carloadings and financial results will not incorporate RailAmerica's operations for such periods. RailAmerica's September 2012 carloadings press release is posted on RailAmerica's website www.railamerica.com. Other Historically, GWI has found that carload information may be indicative of freight revenues on its railroads, but may not be indicative of total revenues, operating expenses, operating income or net income. Car movements related to railcar switching, including activities at port terminals, are excluded from our carload information as the resulting revenues are classified as non-freight. GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, GWI operates the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 66 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 23 ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers. RailAmerica, Inc. owns and operates short line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces. Exhibit The table below sets forth North American carloading information for September 2012 and September 2011:                     September September 2012 2011 % Change North America Operations: Coal & Coke 18,095 18,821 -3.9% Pulp & Paper 8,323 8,024 3.7% Metals 7,705 7,720 -0.2% Lumber & Forest Products 6,266 5,481 14.3% Minerals & Stone 5,942 7,464 -20.4% Chemicals & Plastics 5,173 5,238 -1.2% Farm & Food Products 3,390 3,526 -3.9% Petroleum Products 2,722 2,455 10.9% Metallic Ores 1,026 1,125 -8.8% Autos & Auto Parts 904 718 25.9% Intermodal* 321 270 18.9% Other 3,019 5,050 -40.2% Total carloads 62,886 65,892 -4.6%   * - Represents intermodal units   The table below sets forth North American carloading information for the third quarter of 2012 and the third quarter of 2011:                     3rd Qtr 3rd Qtr 2012 2011 % Change North America Operations: Coal & Coke 52,990 53,553 -1.1% Pulp & Paper 27,042 24,893 8.6% Metals 22,182 22,748 -2.5% Lumber & Forest Products 18,708 16,614 12.6% Minerals & Stone 17,933 22,591 -20.6% Chemicals & Plastics 16,665 15,449 7.9% Farm & Food Products 11,919 13,192 -9.6% Petroleum Products 7,939 7,439 6.7% Metallic Ores 3,119 2,670 16.8% Autos & Auto Parts 2,574 2,408 6.9% Intermodal* 1,056 582 81.4% Other 10,041 19,114 -47.5% Total carloads 192,168 201,253 -4.5%   * - Represents intermodal units   The table below sets forth Australian carloading information for September 2012 and September 2011:                     September September 2012 2011 % Change Australian Operations: Intermodal* 5,866 5,111 14.8% Minerals & Stone 4,985 4,995 -0.2% Metallic Ores** 2,939 1,997 47.2% Farm & Food Products 2,532 5,574 -54.6% Petroleum Products 31 39 -20.5% Total carloads 16,353 17,716 -7.7%   * - Represents intermodal units ** - Includes carloads and intermodal units   The table below sets forth Australian carloading information for the third quarter of 2012 and the third quarter of 2011:                     3rd Qtr 3rd Qtr 2012 2011 % Change Australian Operations: Intermodal* 16,698 15,251 9.5% Minerals & Stone 14,780 15,651 -5.6% Farm & Food Products 10,450 17,651 -40.8% Metallic Ores** 8,588 6,247 37.5% Petroleum Products 99 137 -27.7% Total carloads 50,615 54,937 -7.9%   * - Represents intermodal units ** - Includes carloads and intermodal units   Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding GWI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to forecast. Actual results may differ materially from those expressed or forecast in these forward-looking statements. Examples of factors that could cause actual results to vary from those expressed in forward-looking statements include all statements that are not historical in nature, including statements regarding: (1) the industry and markets in which we operate and our competitive position and outlook; (2) the impact of political, social or economic conditions (including commodity demand associated with the industrialization of developing economies) on our results and our susceptibility to downturns in the general economy; (3) our operations, competitive position, growth strategy and prospects; (4) our ability to complete, integrate and benefit from acquisitions, including receipt of Surface Transportation Board approval to integrate the operations of RailAmerica, Inc., investments, joint ventures and strategic alliances, and the challenges associated with managing rapid growth and operating a global business with decentralized management and operations; (5) our indebtedness and our ability to fulfill our obligations under such indebtedness; (6) our susceptibility to severe weather conditions, climate change and other natural occurrences, which could result in shutdowns, derailments, other substantial disruptions of operations or impacts on our customers; (7) governmental policies, legislative and regulatory developments affecting our railroad operations or the operations of our customers; (8) our susceptibility to various legal claims and lawsuits; (9) our susceptibility to risks associated with doing business in foreign countries and (10) the inherent uncertainty associated with projecting economic and business conditions. Genesee & Wyoming Inc.Thomas D. Savage, 1-203-629-3722Vice President ? Corporate Development & TreasurerWeb Site: http://www.gwrr.com