CHICAGO — GATX Corp. is growing its locomotive lease fleet by 30% with the recent purchase of 156 locomotives from Progress Rail.
“The acquired fleet is predominantly four-axle 1,500- and 2,000-hp locomotives such as GP38-2s and MP15s, which are core to GATX’s operating lease business. A limited number of high-horsepower six-axle locomotives, including nine SD70ACes, were also included,” says Shari Hellerman, senior director of Investor Relations, ESG, and External Communications at GATX.
“The timing was opportunistic as opposed to being driven by any particular market event. Progress told us they wanted to sell, and we were able to negotiate a mutually acceptable price. We are excited to add this fleet of 156 locomotives to our portfolio.”
According to GATX, the portfolio of existing non-new EMD locomotives previously constituted Progress Rail’s lease fleet, and the majority of the locomotives purchased are subject to existing leases, which will remain in place. The locomotives which are not currently on lease will be remarketed by GATX either for lease or sale.
GATX’s wholly owned fleet includes more than 111,000 railcars, including 8,990 boxcars, and 650 locomotives, up from about 500 locomotives before the purchase.
