Genesee & Wyoming, the largest shortline holding company in the US, reported a 4% year-on-year increase in coal and coke shipments in the first quarter largely because of higher domestic demand for thermal coal, said the company Wednesday in its quarterly earnings call.
The Darien, Connecticut-based company said it expects the trend to continue this year.
"It's a very good business for us," said CEO Jack Hellmann of the company's coal traffic. "We had to absorb a lot last year as [demand] fell off, and to the extent that came back and to the extent we go instantly from winter to summer in this country, that could be beneficial to us."
The company does not service any coal mines but delivers unit trains of coal to several power plants on its network, which consists of 111 short lines primarily in the US and Canada.
A shortline, or Class III, railroad operates less than 350 miles of rail and has annual operating revenue of $34.7 million or less, according to the Association of American Railroads.
The first quarter was G&W's first full quarter of integrated operations with the former RailAmerica, which it acquired late last year.
According to its quarterly filing with the Securities and Exchange Commission, the company reported 75,560 coal and coke carloads in the first quarter.
Q1 revenue from coal and coke shipments were $26.5 million, and average revenue per carload was $351.
