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10/24/2002



Rail News: Rail Industry Trends

GATX Rail's 2,500-unit tank-car order initiates 7,500-car purchase plan


For some time, rail-car market prognosticators have predicted that orders and deliveries soon will rebound for car builders. A recent order suggests those forecasts might have some merit.


On Oct. 23, GATX Rail announced it contracted Union Tank Car Co. to supply the leasing company with 2,500 tank cars during the next five years.
The order is the first phase of GATX Rail's car purchase program, under which the leasing company plans to acquire 7,500 new rail cars by 2007 to replace retired rolling stock.


"Although current market conditions remain challenging, we believe that initiating [the] program will enable GATX Rail to acquire cars at very attractive pricing while maintaining flexibility to meet customer needs for modern, high-capacity cars on a long-term basis," said GATX Rail President David Edwards in a prepared statement.


The leasing company is negotiating with other car builders to supply the remaining 5,000 cars.


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