Trinity Rail Group has entered into a new long-term $1.8 billion railcar supply agreement with GATX Corp. to deliver a mix of 15,000 newly built tank and freight railcars over six years.
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 each year from 2024 through 2028. The remaining 9,000 cars, a mix of freight and tank cars, will be ordered at 1,500 cars per order year from 2023 to 2028 and delivered under a to-be-determined schedule.
“This multi-year railcar order with GATX represents the extension of a strong partnership,” Jean Savage, Trinity’s CEO and president, said in a news release. “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,” Savage added.