TRINITY Industries has announced a $US 1.8bn contract with North American leaser GATX to supply a mix of 15,000 new tank and freight wagons until 2028, with GATX having an option to order up to 500 more wagons per year from 2023

Trinity says under the terms of the agreement it will deliver 6000 tank wagons at a rate of 1200 per year from 2024 until 2028. The remaining 9000 wagons, which can be a mix of freight and tank wagons, will be ordered at a rate of 1500 per year from 2023 to 2028 and delivered under a schedule that is yet to be determined.

According to GATX president and CEO, Mr Robert C Lyons the agreement provides GATX with guaranteed access to high-quality, modern and cost-advantaged wagons in North America, enabling the company to continue to serve its customer base. “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,” Lyons says.

“We now have long-term access to a wide range of wagon types, We expect this order will cover our base fleet reinvestment needs in North America through 2028, and we will continue to pursue additional attractive investment opportunities in the new and secondary railcar markets.”

“This multi-year railcar order with GATX represents the extension of a strong partnership,” says Trinity President and CEO, Ms Jean Savage. “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.”