The order encompasses a mix of tank and general freight wagons that will be delivered over a five-year period, beginning in April 2019. The agreement also includes an option to order up to an additional 4400 vehicles, subject to certain restrictions. Under the terms of the agreement, ARI will deliver 450 wagons in 2019, with the remaining 7200 delivered between 2020 and 2023.
“This provides GATX with cost-advantaged railcars to grow our large and diverse fleet in North America,” says GATX president and chief executive, Mr Brian A Kenney. “The timing of this order is consistent with our expectation of a gradual recovery in the freight wagon leasing market. Combined with the 4800 wagon extension of our existing committed supply agreement announced earlier this year, the bulk of our committed vehicle orders now deliver in 2020 and beyond.”