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
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.