Trinity Industries Inc. recently formed and purchased 20 percent of the equity in TRIP Rail Holdings L.L.C., which will provide rail-car leasing and management services in North America. The remaining equity will be held by five private investors not affiliated with Trinity or its subsidiaries.
During the next two years, a wholly owned TRIP subsidiary plans to purchase freight cars valued at about $1.4 billion from Trinity and Trinity Industries Leasing Co., which will manage and service the cars.
“By forming this new company, we are able to shift a significant portion of Trinity’s rail-car backlog that had been dedicated to our internal lease fleet to third-party sales transactions,” said Trinity Chairman, President and Chief Executive Officer Timothy Wallace in a prepared statement. “By doing so, we can continue growing our leasing operations while simultaneously improving the company’s overall cash flow.”
Source: Progressive Railroading Daily News
