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<< Rail News Home: Mechanical

1/11/2008    Mechanical

Rail News: Mechanical

GATX lands car supply, equity interest deals with Providence and Worcester

GATX Corp. now is a part owner of and exclusive rail-car supplier for the Providence and Worcester Railroad Co. (PWRR).

GATX recently entered into a series of agreements with the 545-mile regional through which it will accommodate substantially all of PWRR's car needs and acquire a portion of the railroad's existing freight-car fleet. In addition, the lessor will obtain a 5 percent equity interest in the regional for $5.5 million. GATX initially will lease cars worth $35 million to PWRR in 2008 and 2009.

"The rail-car supply agreement creates a platform for GATX to profitably grow its fleet as P&W grows," said James Earl, GATX executive vice president and chief operating officer, in a prepared statement.

GATX, which leases cars and locomotives, maintains a lease fleet of about 111,000 cars. PWRR operates lines in Rhode Island, New York, Connecticut and Massachusetts.

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