“Over the past two weeks, GWI has announced a series of important transactions that we expect to strengthen our long-term earnings growth. In North America, the pending acquisition of RailAmerica will create an expanded national footprint for commercial and industrial development. In Australia, the announced expansion of our export iron ore contracts in South Australia, the acquisition of a freight and intermodal terminal in Alice Springs, as well as the final delivery of new, high-horsepower locomotives further strengthen our service position in central Australia. Finally, our announcement today that we have signed an agreement with Tata Steel Minerals Canada to construct and operate a rail line in the Labrador Trough once again highlights our expanding capabilities to serve the global mining industry.”

Results from Continuing Operations

In the second quarter of 2012, GWI's total operating revenues increased $7.8 million, or 3.7%, to $217.4 million, compared with $209.6 million in the second quarter of 2011. The increase included $6.9 million in revenues from new operations and a $1.0 million, or 0.5%, increase in same railroad operating revenues. During the second quarter of 2012, the depreciation of foreign currencies versus the U.S. dollar decreased same railroad operating revenues by $4.4 million, or 2.1%. Excluding the impact from foreign currency, GWI’s same railroad operating revenues increased $5.4 million, or 2.6%.

Same railroad freight revenues in the second quarter of 2012 increased $1.0 million, or 0.7%, to $147.8 million, compared with $146.8 million in the second quarter of 2011. Excluding a $3.0 million decrease from the impact of foreign currency depreciation, GWI’s same railroad freight revenues increased by $4.0 million, or 2.7%.

GWI's traffic in the second quarter of 2012 was 232,315 carloads, a decrease of 17,193 carloads, or 6.9%, compared with the second quarter of 2011. Traffic in the second quarter of 2012 included 4,315 carloads from new operations. Same railroad traffic decreased 21,508 carloads, or 8.6%, in the second quarter of 2012. The same railroad traffic decrease was principally due to decreases of 13,893 carloads of other commodity traffic, primarily related to a decrease in coal haulage moves, 7,834 carloads of coal traffic and 4,238 carloads of farm and food products traffic, partially offset by an increase of 1,983 carloads of metallic ores traffic and 1,487 carloads of intermodal traffic. All remaining traffic increased by a net 987 carloads.

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