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Genesee & Wyoming Inc. and Labrador Iron Mines Holdings Limited Sign Rail Services Agreement

Thursday, April 28, 2011 7:02 am EDT



Public Company Information:


GREENWICH, Conn.--(BUSINESS WIRE)--Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that its subsidiary, Western Labrador Rail Services (WLRS), has entered into a long-term rail services agreement (Agreement) with Labrador Iron Mines Limited (LIM), a subsidiary of Labrador Iron Mines Holdings Limited (TSX: LIM). Under the terms of the Agreement, WLRS will operate LIM's newly constructed six-kilometer railway, which connects LIM’s Silver Yards processing facility in western Labrador to Tshiuetin Rail Transportation Inc.’s (TSH) privately owned rail line that runs from Schefferville, Quebec to Emeril Junction, Quebec. WLRS will provide and operate up to five locomotives that will also be used by TSH to haul unit trains of iron ore to Emeril Junction. The iron ore will then travel over a third privately owned railway to port facilities in Sept-Iles on the St. Lawrence River for export to the seaborne iron ore market. Operations are expected to commence in May 2011.

WLRS is part of GWI's Canada Region and provides rail service to mining companies operating in Labrador and the Quebec North Shore.

About Labrador Iron Mines

LIM’s Schefferville Area project involves the development of twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec near Schefferville, Quebec. The Company’s properties are part of the historic Schefferville area iron ore district where mining of adjacent deposits was previously carried out by the Iron Ore Company of Canada from 1954 to 1982. LIM contemplates mining in stages, the first phase of Stage 1 comprising the James and Redmond deposits where mining has already commenced and construction of the Silver Yards processing plant has been completed.

About Genesee & Wyoming Inc.

GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia, the Netherlands and Belgium. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers. In addition, we operate the Tarcoola to Darwin rail line which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 63 railroads organized in nine regions, with approximately 7,400 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements.

Caution regarding forward-looking statements

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Genesee & Wyoming's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.


Genesee & Wyoming Inc.:
Michael Williams,
Corporate Communications, 203-629-3722
Genesee & Wyoming Canada Inc.
Mario Brault, President, 514-948-6995