TTX Heading Southeast to North Carolina

TTX photo

TTX Company, the Class I-owned railcar pooling company founded as Trailer Train in 1955 by the Pennsylvania Railroad and a major provider of railcars and related freight car management services to the North American rail industry, is pulling up stakes in Chicago and moving its headquarters to Charlotte, N.C.

The relocation involves TTX’s finance, information technology, human resources and business and product development units, among others. The company will invest $14.5 million in Mecklenburg County. “We believe Charlotte presents a unique opportunity for TTX that provides for strategic partnerships to strengthen our business,” said Thomas F. Wells, President and CEO. “Our company is positioned to provide strong rail and freight car management services from the Charlotte metro area. As such, we are excited to partner with local innovators, business leaders and academic institutions to drive value for the North American rail industry and the local economy. We also look forward to welcoming new local talent to join our existing workforce to continue to drive our long-term success.” 

TTX’s relocation to North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Over the course of the grant’s 12-year term, the project is estimated to grow the state’s economy by $855 million. Using a formula that considers the new tax revenues generated by an estimated 150 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $1.83 million spread over 12 years. “State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets,” JDIG said, noting that its projects “result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.”

Because TTX chose a site in Mecklenburg County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $609,250 into the state’s Industrial Development Fund – Utility Account, which “helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Mecklenburg, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state. Although wages will vary depending on the position, the average salary for the new positions will be, at a minimum, $162,000. The current average wage in Mecklenburg County is $80,349.

The North Carolina Department of Commerce said it “led the state’s support for the company during its site evaluation and decision-making process” with partners Economic Development Partnership of North Carolina, North Carolina General Assembly, North Carolina Community College System, Mecklenburg County, the City of Charlotte, Charlotte Center City Partners and the Charlotte Regional Business Alliance.