CHICAGO — GATX Corp. will purchase 15,000 new railcars, including at least 6,000 tank cars, from Trinity Industries subsidiary Trinity Rail in 2023 through 2028, with an option for an additional 500 in each of those years.
Trinity’s announcement said the deal is valued at $1.8 billion.
The agreement announced Monday calls for 1,200 tank cars per year to be delivered between 2024 and 2028, with the remaining 9,000 cars — which can be a mix of tank cars and other freight cars — to be ordered at a rate of 1,500 per year and delivered under a schedule to be determined.
“This agreement provides GATX with guaranteed access to high-quality, modern and cost-advantaged railcars in North America,” GATX CEO Robert C. Lyons said in a press release. “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.”
Trinity CEO Jean Savage said the agreement “represents the extension of a strong partnership. 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.”
So how many relatively new tank cars are still in storage?
I wonder how many will be used by CPKC to get Alberta/Bakken Oil to the petro Coast.
“Pipeline? We don’t need no stinkin’ pipeline!” Way to go GATX, Trinity, the railroads and rail customers. Big win all the way around.