USA: Announcing that it had received orders for 5 600 wagons worth $460m in its second financial quarter which ended on February 28, The Greenbrier Companies said it expects that current 'downward trends in railroad train velocity' will lead to stronger demand for certain types of wagon.
The orders include 1 200 intermodal platforms, as well as hopper and tank cars for the energy sector, automotive-related products, covered hoppers for the grain and plastic pellet markets, boxcars for paper and forest products and open wagons for metal and scrap.
'Our business is benefitting from broad-based demand for all of our car types, including increased demand for intermodal platforms as intermodal loadings accelerate and rail velocity slows due to system congestion', said Chairman & CEO William A Furman. 'An important aspect of the new tank car operating safety standards is the requirement for reduced railway speeds for most trains carrying crude oil. Slower train speed means velocity across the entire network will likely be affected. As velocity on the rails slows, we believe there will be an increase in demand for certain railcar types carried in unit trains, such as grain and intermodal.'