Genesee & Wyoming Inc. is planning to separate into three rail holding companies, effective Jan. 1, 2027, a move that will position the regional entities for eventual sale.
The companies will continue to be owned by G&W parent Brookfield and GIC. G&W operates more than 100 railroads.
The new companies are:
Atlantic & Great Lakes Transportation Inc., which will be made up of G&W operations in New England (including Berkshire & Eastern Railroad), New York, Ohio, and Pennsylvania. Atlantic & Great Lakes will be based in Rochester, N.Y., and led by Chief Executive Bill Keough, who has been with G&W for eight years and most recently served as regional senior vice president.
Canyon & Cascade Transportation Inc., which will be comprised of G&W operations in Washington, Oregon, California, Arizona, and New Mexico. Canyon & Cascade will be based in Phoenix and led by CEO David Franklin, who was most recently a divisional vice president at G&W and has been with the company for 24 years.
Jacksonville-based Genesee & Wyoming Inc., which will retain the other subsidiary operations in the Midwest, Southeast, and Central United States, as well as Canada — about 65% of the business as it currently exists. G&W will be based in Jacksonville and continue to be led by Michael Miller, who has served as CEO since 2023.
Brookfield Infrastructure Partners CEO Sam Pollock, speaking at the company’s investor day in September, said that splitting up its larger holdings, like railroads, would make it easier to find buyers. There are a limited number of buyers who would be able to swallow G&W whole. Brookfield and GIC acquired G&W for $8.4 billion in 2019.
Miller said splitting into three companies will enable the railroads to improve growth and efficiency.
The company’s subsidiaries and joint ventures serve 2,000 customers over more than 13,000 miles of track and also provide rail service at more than 30 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, and industrial railcar switching and repair.
Pending regulatory approval, the three companies are expected to begin operating independently Jan. 1, 2027 – each with its own board of directors, leadership teams and capital structures.
Why it matters: For shippers, the immediate question is whether greater regional autonomy delivers the growth and efficiency gains management promises without complicating service across the newly separated companies.
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