Genesee & Wyoming's Huron Central Railway To Close

GREENWICH, Conn. (AP) — Regional freight railroad operator Genesee & Wyoming Inc. said Monday the weak economy will force it to shut down its Huron Central Railway Inc. subsidiary by the end of October, eliminating 45 jobs.

The subsidiary will cease operations between McKerrow and Sault Ste. Marie, Ontario on Aug. 15. The eastern segment of the railroad from Sudbury to McKerrow and Espanola will halt Oct. 31.

"The downturn in the economy has caused the Huron Central's traffic to decline substantially over the last 12 months, to the point that the railroad is not economically viable to operate for the long term," Genesee & Wyoming said in a statement.

Genesee & Wyoming expects to record charges in the second quarter of up to $5.3 million, or 15 cents per share.

In the year ended Dec. 31, Huron Central Railway handled roughly 16,000 carloads, generated revenue of $7.4 million and incurred a $2.1 million operating loss, reducing Genesee & Wyoming's earnings per share by roughly 4 cents.

Huron Central Railway has operated the 173-mile railroad from Sudbury to Sault Ste. Marie under a lease agreement with Canadian Pacific Railway since 1997.