October 3, 2022 - TRA Newswire -
The freight railcar business continues to be strong for Dallas-based Trinity Industries (NYSE:TRN). It's subsidiary, Trinity Rail Group, LLC, has entered into a new long-term railcar supply agreement with GATX Corporation (“GATX”) to deliver a mix of 15,000 newly built tank and freight railcars over a six-year period.
GATX has the option to order an additional 500 railcars in each order year.
Under the terms of the agreement, Trinity will deliver 6,000 tank cars at a rate of 1,200 cars each 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 schedule to be determined.
“This multi-year railcar order with GATX represents the extension of a strong partnership,” said Jean Savage, Trinity’s Chief Executive Officer and President. “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.”
Ms. Savage continued, “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.”
In the latest reporting quarter Trinity Industries received orders for 4,335 railcars and delivered 2,510 railcars. Even at that pace the company still has a backlog of $2.2 billion in deliveries of railcars at the end of June. Third quarter results are expected shortly.
Trinity Industries is a leading provider of rail transportation products and services in North America under the trade name TrinityRail®. The TrinityRail platform provides railcar leasing and management services, as well as railcar manufacturing, maintenance and modifications.
Photo credit: TrinityRail