Recession-hit wagon deal is revised
USA: The Greenbrier Companies and General Electric Railcar Services have reached an agreement to reduce an order for 11900 tank and hopper wagons which was signed in 2007 when trade was booming, but which GERS sought to cut back once the recession hit demand.
The contract has been reduced to 6000 wagons, with a unit price increase. Delivery of the first 3800 vehicles has been extended by 27 months to July 2013, which Greenbrier said will stabilise production for at least two years. The remaining 2200 wagons are subject to 'certain contractual conditions by both parties at their sole discretion'.
Greenbrier retains the right of first refusal to manufacture all new wagons for GERS until December 2018. It will also be a preferred maintenance provider under a five-year agreement with a minimum value of $25m, which starts with a contract to reduce the length of 485 double-stack intermodal wagons. It also has first refusal on refurbishment work to March 2015.