Vertex Railcar Corp. launches leasing subsidiary

Written by William C. Vantuono, Editor-in-Chief
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Wilmington, N.C.-based Vertex Railcar Corp. on Feb. 25, 2016 announced launch of Vertex Rail Leasing, LLC, which is structured as a wholly owned subsidiary “and will serve as a leasing partner to support customers who prefer leasing alternatives,” said Vertex CEO Donald Croteau.

The new railcar leasing company will begin offering a variety of leasing options on Vertex-manufactured railcars immediately. Presently, the company is able to produce 3285CF covered hoppers, 5400CF covered hoppers, aggregate cars, gondola cars, and DOT117 tank cars. The manufacturing facility in Wilmington is being outfitted to produce 8,000 cars annually. Croteau said that with the company’s ramp-up and with “market conditions being the way they are,” he expects 2016’s output will be between 2,500 and 3,000 cars.

“With the launch of Vertex Rail Leasing, we’re well positioned to address railcar needs across the full spectrum of customers in the market—those who prefer to lease, those who prefer to purchase and those who prefer a combination approach,” said Croteau. “We continue to scale operations and outfit our facility as we pursue certifications to build additional types of railcars and expand our service offerings. Hiring will continue at Vertex throughout 2016 as our company takes orders—both for purchase and lease—and works toward our overall goal of producing 8,000 cars per year.”

Following official site audits late last year, representatives from the Association of American Railroads (AAR) certified that the Vertex facility in Wilmington meets AAR Quality Assurance (M-1003) specifications and awarded an S-2034 Car Builder Certification. In the past 12 months, the company has entered into a joint partnership with China South Locomotive & Rolling Stock Corporation Limited (CSR), one of the largest railcar manufacturers in the world; completed one of three production bays at its Wilmington facility; hired nearly 200 people; built its first hopper cars; and built a rail spur to move completed cars out of the facility.

Categories: Finance/Leasing, Freight Cars Tags: ,