Genesee & Wyoming and Tata Steel Minerals Canada Ltd. Sign Rail Services Agreement; GWI Subsidiary to Construct and Operate 21-Kilometer Rail Line in the Labrador Trough
Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that GWI and a newly formed GWI subsidiary, KeRail Inc. (KeRail), have entered into a long-term agreement with Tata Steel Minerals Canada Ltd. (TSMC) for KeRail to provide rail transportation services to the 4.2 million tons per annum direct shipping iron ore mine TSMC is developing near Schefferville, Quebec in the Labrador Trough (the Mine). In addition, KeRail will construct an approximately 21-kilometer rail line (Rail Line) that will connect TSMC's mine to the Tshiuetin Rail Transportation (TSH) interchange point in Schefferville.
Operated as part of GWI's Canada Region, KeRail will haul unit trains of iron ore from its rail connection with the Mine that will then travel over three privately owned railways to the Port of Sept-Iles for export primarily to Tata Steel's European operations. The agreement and construction is contingent on certain conditions being met, including the receipt of necessary governmental permits and approvals. Once the track construction has commenced, which is anticipated in the third or fourth quarter of 2012, the Rail Line is expected to be completed three to six months thereafter.
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