EXIM Bank finances Railserve LEAF export

EXIM Bank (Export-Import Bank of the United States) has financed the sale of Railserve’s LEAF® locomotives to Societe d’Exploitation du Transgabonais (SETRAG), a railway operator in Gabon, Africa.

The Bank guaranteed a $10 million loan extended by American Trade & Finance Company (Atrafin) to facilitate the export. This created up to 20 jobs at Railserve’s manufacturing facility in Longview. Railserve approached EXIM Bank in 2013 to finance the export sale to SETRAG. “This was a whole new ball game for the business, and Railserve needed to be sure it had the financial security to confidently and successfully engage,” said EXIM Bank.“Our loan guarantee mitigates the potential risks associated with selling to foreign buyers and ensures that the U.S. business gets paid. The program provides competitive financing options and flexible repayment terms for international buyers that otherwise may not have been available from lenders. We have a Congressional mandate to support the export of U.S.–made goods and services to sub-Saharan Africa, and authorized more than $2 billion in financing to support such exports in 2014, the largest total in the Bank’s 81-year history.

“With this transaction, we’ve not only leveled the playing field for an American manufacturer in a highly competitive global market, but we’ve also empowered Railserve to hire more American workers in Longview” said EXIM Bank Chairman and President Fred P. Hochberg. “This deal is a great example of how the Bank’s financing equips American exporters to beat the competition overseas while supporting jobs at home.”

EXIM Bank noted that Railserve “was able to outbid Chinese competition thanks to the financing it applied for and received from the Bank. As a result, the company’s locomotives are now being used in Gabon as part of SETRAG’s plans to improve railway operations.”

“It’s our first sale outside of North America so this is a big step for us,” said Railserve LEAF Program Manager TJ Mahoney. I”t was very important that we had the support of EXIM, because that was a critical element in the buyer’s selection of Railserve. We added new positions in our manufacturing plant due to the SETRAG order and are able to secure the jobs of all employees at the plant. We’re very pleased with this level of business and we think it’s going to open doors for us across Africa, where there’s a lot of rail development under way.”

EXIM Bank describes itself as “an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Almost 90% of its transactions directly serve American small businesses. In fiscal year 2015, EXIM Bank approved $12.4 billion in total authorizations. These authorizations supported an estimated $17 billion in U.S. export sales, as well as approximately 109,000 American jobs in communities across the country.”

Railserve, a Marmon/Berkshire Hathaway company, is one of the largest providers of in-plant rail switching and associated services, operating in more than 70 locations in the U.S. and Canada. Railserve manufactures the Railserve LEAF® and Railserve Dual LEAF® Gen-Set Locomotives at its Longview, Tex., facility. Railserve uses its own locomotives and employees to move railcars within industrial, manufacturing, and production plants. In addition, Railserve provides other services including railcar loading and unloading; and track maintenance, inspection and repair.