Trinity Rail Group, a subsidiary of Trinity Industries, has received a $1.8bn worth multi-year railcar supply order from GATX.
Under the long-term agreement, Trinity Rail will deliver a mix of 15,000 newly built tank and freight railcars in six years.
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GATX also has an option for ordering an additional 500 railcars in each order year.
As per the terms of the deal, Trinity will supply 6,000 tank cars at a rate of 1,200 cars per annum between 2024 and 2028.
A mix of 9,000 freight and tank cars will be ordered at a rate of 1,500 cars per order year from 2023 to 2028, while the delivery schedule is yet to be determined for this order.
Trinity CEO and president Jean Savage said: “This multi-year railcar order with GATX represents the extension of a strong partnership.
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By GlobalData“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.”
GATX president and CEO Robert Lyons said: “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.”
In August last year, Trinity Industries and Wafra launched a new railcar investment vehicle (RIV) programme to attain $1bn in total acquisitions over a three-year investment period.
Trinity provides its railcar products and services under the trade name TrinityRail.
TrinityRail offers railcar leasing and management services besides involving in railcar manufacturing, maintenance, and modifications.
GATX leases transportation assets such as railcars, aircraft spare engines, and tank containers to customers across the globe.
