Eastern Railroad Discussion > "Greenbrier to supply 11,900 cars to GE"

Oct. 10 news from RAILWAY AGE Magazine:
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Greenbrier to supply 11,900 cars to GE

The Greenbrier Cos. and the Rail Services division of GE Equipment Services announced today an agreement for Greenbrier to supply 11,900 tank cars and covered hopper cars for Rail Services over an eight-year period. Tank cars will make up the majority of the order, marking Greenbrier's entry into the tank car manufacturing market in North America.

As part of the agreement, Greenbrier will install GE's proprietary VeriWise™ RAIL fleet management technology on the railcars during the manufacturing process.

Initially, Greenbrier will produce 30,000-gallon non-coiled, non-insulated tank cars, which are used to transport ethanol, methanol and more than 60 other commodities. Greenbrier plans to develop and produce other general-purpose tank cars in coming years. The agreement provides for flexibility in car type mix to meet future market needs and fluctuations.

Delivery of the first 3,400 railcars is slated for the third calendar quarter of 2008, with completion expected by the first half of 2011. Deliveries beyond this first group of railcars are subject to fulfillment of certain competitive conditions, the companies said.

GE's VeriWise RAIL solution generates information about a railcar's location and the environmental conditions inside it for customers, who can use the information to enhance safety and security, improve shipment delivery cycles and increase the productivity of their fleet operations.

William A. Furman, president and chief executive officer of Greenbrier, said, "We are gratified at the confidence GE Rail Services, the largest operating lessor in North America, has placed in us by selecting Greenbrier to supply its new freight car needs. Our recently formed joint venture facility, Greenbrier-GIMSA, is expected to provide low capital cost access to competitive tank car production. This facility also has additional space to expand production further, once we have ramped up tank car production, should market conditions support it. We intend to capitalize both on our prior experience in building tank cars in Europe and Canada and on GE Rail Services' vast knowledge of tank cars, to help ensure the smooth start-up of this new product line."

Jay Wileman, president and chief executive officer of GE Equipment Services, Rail Services, said, "GE is excited about the opportunity to build our cutting-edge asset intelligence technology into railcars with such a high-quality railcar builder. We look forward to working with Greenbrier."