Trinity Lands $1.8B Multi-Year Railcar Order

Written by Marybeth Luczak, Executive Editor
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Trinity Industries on Oct. 3 reported that it will supply a mix of 15,000 newly built tank and freight railcars to GATX through 2028, with GATX having an option to order up to 500 more railcars per year from 2023 to 2028.

Under terms of the agreement, worth $1.8 billion, Trinity said it will deliver 6,000 tank cars at a rate of 1,200 per year from 2024 through 2028. The remaining 9,000 cars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 cars per order year from 2023 to 2028 and delivered under a “to be determined” schedule.

“This agreement provides GATX with guaranteed access to high-quality, modern and cost-advantaged railcars in North America,” GATX President and CEO Robert C. Lyons said. “With our existing supply agreements scheduled to expire at the end of 2023, this is an opportune time to establish a new agreement with Trinity, a proven supplier to GATX. We now have long-term access to a wide range of car types, enabling us to continue serving our large and diverse customer base. We expect this order will cover our base fleet reinvestment needs in North America through 2028, and we will continue to pursue additional attractive investment opportunities in the new and secondary railcar markets.”

“This multi-year railcar order with GATX represents the extension of a strong partnership,” Trinity President and CEO Jean Savage said. “We are proud of the relationship we have built with GATX and pleased that they have once again selected TrinityRail as the premier North American railcar manufacturer. At Trinity, we continue to believe that our ability to provide railcars for shippers, railroads, and other leasing companies gives us the broadest view into trends and dynamics in the industry and, ultimately, drives strong returns for our shareholders.”

Jean Savage, President and CEO of Trinity Industries. Savage will be a featured speaker at the 2022 Rail Insights: Women in Rail Conference, presented virtually on Nov. 10.
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