Genesee & Wyoming Inc. (G&W) is acquiring the shares of Atlantic Western Transportation, Inc., parent company of Heart of Georgia Railroad, Inc. (HOG).
The terms of the acquisition were not disclosed. The acquisition is subject to customary closing conditions, including the receipt of U.S. Surface Transportation Board approval, and is expected to be completed in the second quarter of 2017.
HOG was founded in 1999 and operates across the state of Georgia on 219 miles of track leased from the Georgia Department of Transportation. It connects with G&W’s Georgia Southwestern Railroad at Americus, Ga., and with G&W’s Georgia Central Railway at Vidalia, Ga.
“The Heart of Georgia is an excellent bolt-on acquisition that we expect will enhance economic development by providing an efficient lane across southern Georgia,” G&W Senior Vice President Andy Chunko said in a news release. “Its proximity to other G&W railroads unlocks operational efficiencies, while enhancing the railroads’ abilities to serve customers and generate new commercial opportunities across the region.”
HOG serves an inland intermodal terminal at Cordele, Ga., providing five-day/week, direct rail service via the Georgia Central Railway to the Port of Savannah for auto, agricultural products and other merchandise customers. HOG has Class I railroad connections with CSX at Cordele and with Norfolk Southern at Americus and Helena, Ga.
HOG transports approximately 10,000 annual carloads of agricultural products, feed, fertilizer, and lumber and forest products, of which approximately 2,000 carloads are interchanged with G&W’s Georgia Central Railway. Following the acquisition, HOG will be managed as one of G&W’s Coastal Region railroads.