For GJR, Another Record Year
Written by Stephen C. Host
May 20024: Two GEXR trains pass each other in Lower Yard. With continued growth, this means two jobs working the line at the same time for most of the working day to service customers. Stephen C. Host
The City of Guelph-owned Guelph Junction Railway (GJR) has again set record revenue and carload counts for 2023, despite headwinds.
According to its 2023 annual report, GJR handled 5,737 cars in 2023, an increase of 498 cars or almost 10%. Net revenue increased by 29% to C$2.1 million despite a derailment that occurred in October 2023 that cost the railway C$320,000 to rerail cars and repair damaged track. Gross revenue was C$7.5 million, and cash on hand is C$2.0 million, with C$702,000 reserved in a fund for the replacement of a circa-1900 bridge over the Speed River by Alan’s Mill downtown.
The Board (consisting of the City’s Chief Administrative Officer and GJR CEO Scott Stewart) declared a dividend to the City of C$210,000, aligning with the 10% dividend policy set in prior years. Genesee & Wyoming Canada subsidiary Goderich-Exeter Railway (GEXR), which operates the line under contract, was paid C$3 million for freight movement in 2023 , and currently operates three jobs per weekday with extras on weekends as needed. With car counts continuing to grow, GJR General Manager Les Petrosczi noted that discussions are ongoing to add a fourth job or a third crew member to existing jobs to improve switching efficiency.
Track maintenance and signaling is contracted out by GJR to various companies, and expenses topped C$1 million, higher due to the derailment. The railway continues to expand, which will add to next year’s budget: In 2023 and 2024, 1,600 feet of track was built at the GJR/CN interchange near Woodlawn and Edinburgh Road, which now resembles a small rail yard. Two more phases of the AgCatena (Flash Freight Systems) sidings are planned to be completed by 2025 near Woodlawn Road in the north end of the City as Flash Freight continues to expand its partnership with the railway. Additionally, the Kaufman Siding will add yet another track to support business growth of nearby customers. In 2025, a major expansion of the Campbellville, Ontario rail yard, the primary interchange point with Canadian Pacific Kansas City (CPKC) will occur. Upwards of 4,000 feet of new track will be constructed, the first major expansion of the yard in nearly 20 years.
GJR also completed purchase of two buildings at the Campbellville yard that were owned by the Ontario Southland: An office for crews and management, and a three-bay engine house that will be used for GEXR to store and maintain locomotives. The buildings will be leased to GEXR, providing GJR additional revenue.
Commenting on the GJR’s overall strategy, Petrosczi said, “We need to plan to keep up with customer growth so GJR and customers remain safe, sustainable and profitable.” He further noted that increases in revenue result in an increased capital and maintenance budgets, which continues to fuel higher car counts and revenue from customers.
With so much fuel in the firebox, the success and growth of Guelph Junction Railway is “full steam ahead.” industry observers may soon turn their head toward GJR to see how this 24-mile short line has managed all this growth and what fuel they’re putting in the firebox.
