U.S. railroad operator Genesee & Wyoming Inc agreed to buy Australia's FreightLink for A$334 million (about $277.2 million) to expand its operations in the mineral-rich country.

FreightLink, which has been in receivership since November 2008, is the owner and operator of the Adelaide-to-Darwin railway, which mainly hauls commodities for mining companies.

Reuters reported earlier this month that bids for FreightLink have come in below its outstanding debt levels, and that Genesee is seen as a frontrunner for the company.

The railway, originally valued at about A$1.2 billion, went into administration after some debt holders refused to agree to an earlier deal to sell the company.

Genesee, which expects to incur a charge of A$23 million on the buy, plans to fund the deal though cash on hand and borrowings from its credit facility, it said in a statement late Tuesday.

The company said it may issue a new tranche of Australian debt if it is able to obtain commercially acceptable terms.

Genesee expects FreightLink to add about A$145 million (US$120 million) of revenue and A$35 million (US$29 million) of operating income in the first 12 months of ownership.

Greenwich, Connecticut-based Genesee is a short-line and regional freight railroad operator in the United States, Canada, Australia and the Netherlands. (Reuters)