The Greenbrier Companies and Tokyo-based Mitsubishi UFJ Lease & Finance (MUL) have entered agreements to expand their partnership in North America in accordance with the Memorandum of Understanding (MoU) announced in April.
MUL has entered into a multi-year purchase commitment for 6,000 newly manufactured railcars from Greenbrier as part of its plan to expand its portfolio to a total of 25,000 railcars over the next four years.
Delivery of the railcars is expected to start from the last quarter of this year and continue to 2020.
MUL is set to procure all of its newly manufactured railcars exclusively from Greenbrier through 2023.
The company will also work to enhance its portfolio via a combination of lease syndications and used equipment originated and owned by Greenbrier over the next several years.
The combined value of all the transactions is estimated to be more than $1bn.
Greenbrier Companies chairman and CEO William Furman said: “Greenbrier is pleased to extend its business relationship with MUL with these recently signed agreements and the formation of MUL Greenbrier Management Services.
“This expanded relationship with MUL demonstrates our earned reputation of providing tailored solutions to our customers.
“We take pride in the series of transactions we have completed with our friends at MUL and look forward to our continuing work together.”
The companies have also established MUL Greenbrier Management Services, which is a new railcar management services entity with equal partnership. The organisation will be responsible for managing all railcars in the MUL fleet.
Greenbrier will receive a consistent fee for providing railcar asset management services to the MUL locomotives.
Greenbrier is headquartered in Lake Oswego, Oregon, and specialises in the design, manufacture and provision of freight railcars across North America, Latin America and Europe.