GATX Corporation entered into an agreement with American Railcar Industries, Inc. to purchase 7,650 newly built railcars, with an option for additional 4,400 railcars. The order encompasses a mix of tank and freight cars delivered over a five-year period, beginning in April 2019.
Under the contract, American Railcar Industries will initially deliver 450 railcars in 2019, with the remaining 7,200 delivering ratably from 2020 – 2023.
“This provides GATX with cost-advantaged railcars to grow our large and diverse fleet in North America. The timing of this order is consistent with our expectation of a gradual recovery in the railcar leasing market. Combined with the 4,800 railcar extension of our existing committed supply agreement announced earlier this year, the bulk of our committed railcar orders now deliver in 2020 and beyond,” Brian Kenney, president and chief executive officer of GATX Corp said.
Currently, GATX owns a total of 142,000 railcars, of which on GATX Rail Europe has 23,100 cars with an utilization of 97.8%, and Rail North America’s wholly owned fleet comprises 119,000 railcars, including 16,000 boxcars.