Genesee & Wyoming says preliminary assessments of Dec. 27 derailment site indicate railroad segment between Katherine and Darwin, Australia, will be out of service until end of January; freight to Darwin being moved by road

GREENWICH, Connecticut , January 3, 2012 (press release) – Genesee & Wyoming Inc. (GWI) (NYSE: GWR - News) today provided the following update of activities since the Dec. 27 derailment of a freight train operated by Genesee & Wyoming Australia Pty Ltd (GWA) in Australia’s Northern Territory.

The train was derailed approximately 40 km north of Katherine, Northern Territory, in flood waters on the Edith River resulting from isolated, heavy rainfall associated with Cyclone Grant. GWA is working with the relevant Australian state and federal government authorities and its customers to investigate and remediate the site.

On the evening of Dec. 28, the rear portion of the train, unaffected in the derailment, was returned to Katherine, and the delayed freight cars were made available to customers for transport to Darwin upon the reopening of the Stuart Highway, also affected by the flood, the following evening.

GWA and the relevant authorities moved quickly to establish the towns of Katherine and Alice Springs as freight hubs to facilitate the movement of goods to Darwin, and GWA has provided additional resources to these locations to support operations. Train services departing Adelaide for Darwin have continued throughout this period. Rail services terminate at Katherine and Alice Springs, and freight is then moved to Darwin by road.

Due to the remoteness of the area, the accident site could not be accessed by road until Friday, Dec. 30. Preliminary assessments of the site and work required to repair the damage suggest the railroad segment between Katherine and Darwin will be out of service until the end of January.

Access roads into the site have been constructed, and GWA has sourced equipment and personnel to undertake the necessary recovery and repairs to the rail infrastructure. GWA commenced recovery of some of the damaged equipment yesterday.

The incident is subject to an investigation by the Australian Transport Safety Bureau (ATSB). GWA is actively engaged with the ATSB and accordingly will not comment on the possible causes of the derailment or further details of the incident until the investigation has concluded.

GWA has a proud safety record and had not had an employee injury for 627 days preceding the Dec. 27 derailment, in which one locomotive driver sustained non-life-threatening injuries. The driver was flown to Darwin hospital following the incident, has since been released and is at home recovering.

About GWA

A wholly owned subsidiary of GWI, GWA operates nearly 5,000 km of track in South Australia and the Northern Territory and provides intrastate haulage of bulk commodities including grain, steel, gypsum and minerals as well as short-haul shunting and terminal operations. An accredited rail-service provider in six states (all but Tasmania), GWA has more than 300 employees, 70 locomotives and 950 active freight wagons. GWA runs six return intermodal services between South Australia and the Port of Darwin per week over the 2,200 km Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia.

About GWI

GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. 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 64 railroads organized in 10 regions, with more than 7,500 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers.

"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.


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