Genesee & Wyoming Inc. reported March 2006 and first quarter of 2006 traffic volumes for its North American and 50%-owned Australian operations.

On February 13, 2006 GWI announced that the Company and its joint venture partner, Wesfarmers Limited, entered into a definitive agreement to sell their Western Australia operations and certain other assets of the Australian Railroad Group. GWI also entered into an agreement to simultaneously purchase Wesfarmers' 50% ownership interest in the Australian Railroad Group's remaining operations, which are principally located in South Australia and the Northern Territory. The Adelaide-based business will be renamed Genesee & Wyoming Australia Pty Ltd and will be a 100 percent-owned subsidiary that is reported on a consolidated basis in GWI's financial statements. The sale is subject to customary closing conditions, including certain government approvals, and is expected to close in the second quarter of 2006.

North American traffic in March 2006 was 72,180 carloads, an increase of 13,415 carloads, or 22.8%, compared with March 2005. North American traffic in the first quarter of 2006 was 208,774 carloads, an increase of 43,988 carloads, or 26.7%, compared with the first quarter of 2005.

Australian traffic in March 2006 was 79,515 carloads, a decrease of 2,792 carloads, or 3.4%, compared with March 2005. Australian traffic in the first quarter of 2006 was 236,724 carloads, a decrease of 1,245 carloads, or 0.5%, compared with the first quarter of 2005.

North American traffic in March 2006 increased by 13,415 carloads, or 22.8%, compared with March 2005. Excluding 999 carloads from the First Coast Railroad which GWI started operating April 9, 2005, and 12,899 carloads from the former Rail Management Corp. railroads which GWI started operating June 1, 2005, North American traffic in March 2006 decreased by 483 carloads, or 0.8%. Coal coke & ores traffic increased by 1,834 carloads compared with March 2005, partially offset by a 933 carload decrease in lumber & forest products traffic in the U.S. and Canada. In addition, GWI's Mexico region, which continues to be negatively affected by the impact of Hurricane Stan, experienced a decrease of 533 carloads. All other traffic decreased by a net 851 carloads.

North American traffic in the first quarter of 2006 increased by 43,988 carloads, or 26.7%, compared with the first quarter of 2005. Excluding 3,780 carloads from the First Coast Railroad which GWI started operating April 9, 2005, and 35,916 carloads from the former Rail Management Corp. railroads which GWI started operating June 1, 2005, North American traffic in the first quarter of 2006 increased by 4,292 carloads, or 2.6%. This increase was primarily due to a 4,466 carload increase in coal coke & ores traffic in the U.S. and Canada and a 2,120 carload increase in metals traffic in the U.S. and Canada. These increases were partially offset by a 1,591 carload decrease in lumber & forest products traffic in the U.S. and Canada. In addition, GWI's Mexico region, which continues to be negatively affected by the impact of Hurricane Stan, experienced a decrease of 1,295 carloads. All other traffic increased by a net 592 carloads.

Australian traffic in March 2006 decreased by 2,792 carloads, or 3.4%, compared with March 2005. The decrease was primarily due to a 6,600 carload decline in iron ores traffic principally caused by temporary shutdowns of two iron ore mines in Western Australia and production delays at a steel facility in South Australia. Grain traffic increased by 543 carloads despite a decline of 1,280 carloads in New South Wales due to the planned exiting of a grain haulage contract. All other commodities increased by a net 3,265 carloads.

Australian traffic in the first quarter of 2006 decreased by 1,245 carloads, or 0.5%, compared with first quarter of 2005. The decrease was primarily due to a 7,657 carload decline in iron ores traffic principally caused by temporary shutdowns of two iron ore mines in Western Australia and production delays at a steel facility in South Australia. Quarter to date results have also been affected by temporary service disruptions caused by Cyclone Clare in January 2006, as well as a 3,768 carload decrease in grain shipments in New South Wales due to the planned exiting of a grain haulage contract. All other traffic increased by a net 10,180 carloads.