Trinity Industries, Inc. recently announced that its subsidiary, TrinityRail Maintenance Services, Inc. (TRMS), has agreed to purchase land for the construction of a new maintenance facility in Shell Rock, Iowa.
TRMS has chosen a 230-acre site for its expansion, which is expected to employ more than 250 people following Trinity’s planned capital investment of approximately $60 million in the Butler County, Iowa, community. Upon completion, the new facility will provide services such as repairs and maintenance, coatings, cleaning, inspections and testing.
The site’s co-location with the Iowa Northern Railroad and optimal access to the Class 1 railroad network were significant factors in Trinity’s decision to build a new railcar maintenance facility in Shell Rock.
TRMS aims to have the new facility operational by the end of 2020 and to be accretive to consolidated financial results by the end of 2021. The development is not expected to impact the company’s 2019 earnings per share guidance.
“TrinityRail Maintenance Services, Inc. is proud to announce the development of a new facility that will provide railcar maintenance and services,” said Eric Marchetto, SVP, Group President, TrinityRail. “This full-service facility will expand our internal network and operational flexibility in a key geographic location. This expansion will enhance our customers’ experience by delivering best-in-class turn times for maintenance events within the railcar industry, as well as consistent quality and compliance standards within our maintenance network.
“This investment will help us achieve our near-term goal to internally service approximately 50% of our maintenance events for our growing fleet of 123,000 owned and managed railcars. This initiative is also aligned with our focus to employ various operational levers to improve the financial returns of our business.”