American Railcar Industries Announces Formation of U.S. Railcar Joint Venture

ST. CHARLES, Mo. — American Railcar Industries and Ohio-based U.S. Railcar announced the formation of a joint venture to be named U.S. Railcar Co.

The joint venture is being formed to design, manufacture and sell Diesel Multiple Units, which are self-propelled passenger railcars in both single- and bi-level configurations. ARI is majority owned by Icahn Enterprises.

“ARI is excited to participate in this opportunity to join USR and bring ARI’s freight rolling stock manufacturing heritage to the passenger equipment sector,” said ARI President and CEO James Cowan. “Our commitment to expand and diversify ARI’s manufacturing program results from ARI’s desire to grow and build on the expected federal commitment to passenger rail as part of a balanced national transportation system. Through this partnership, we look forward to being an integral part of that new growth with modern passenger rail equipment built in the USA.”

ARI will provide U.S. Railcar Co. with its experience in the production of railcars and ARI representatives will comprise half of the Board of the joint venture. Representatives of VRG will comprise half of the Board and will bring to the venture government contracting experience. Once established, the joint venture plans to produce railcars on order for public authorities and communities to improve public transit, commuter and regional rail service.

The U.S. Railcar Co. DMU was prototyped by Colorado Railcar through a demonstration project in 2002 and is currently the only DMU that is fully compliant with Federal Railroad Administration passenger equipment safety regulations as stated in 49 CFR Part 238.

Available in both regional and intercity configurations, the U.S. Railcar Co. DMU is well suited for incremental corridor development at speeds from 79-to-90 mph. Platform enhancements currently anticipated include a diesel-electric upgrade, increasing speeds to 125 mph, making this American-made DMU an attractive solution for both mature and emerging passenger rail agencies around the country.