Global Railway Industries Ltd. of Calgary has won a $2.4-million contract to supply rail gear and spare parts to Canadian Pacific Railway (CPR) and its subsidiaries.
Global (GBI-TSX) said last week its wholly-owned subsidiary – Rafna Industries Ltd. – will supply rail gear units to the CPR in Canada and the Unites States for a three-year period. Calgary-based CPR provides freight transportation services across a 14,000 mile network in Canada and the United States.
Late last month, Global announced a new $500,000 contract to supply and maintain equipment for Canadian National Railway, which operates about 18,000 route miles of track in Canada and the United States.
Rafna designs, manufactures, supplies and installs rail gear, hardware equipment that allows standard road service vehicles to be driven directly on rail lines.
Meanwhile, a proposed acquisition of a U.S. railway equipment supplier by Global has fallen through.
Global terminated the deal with G&B Specialties Inc. because results of the due diligence process “were not in line with expectations,” and the $11 million purchase price of the Berwick, Penn. railway parts manufacturer could not be supported.
Company president Mike Kohut said Global is in discussions with other potential candidates and plans to continue its aggressive growth-by-acquisition strategy.
