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Rail News Home Mechanical

10/29/2007



Rail News: Mechanical

Rail-car deliveries to total 64,500 this year and 57,500 in 2008, EPA says


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The freight-car order slowdown continues — and it'll continue at least through next year, according to Economic Planning Associates Inc.'s (EPA) third-quarter "Outlook for Rail Cars" report.

Of the 8,121 cars ordered during the quarter, 4,318, or 53.2 percent, were for ethanol-related tank cars and hi-cube equipment, EPA said. Of the 67,000 cars in the current backlog, 43,130, or 64.3 percent, either are of the tank car or high-cube covered hopper variety.

Based on assemblies through the year's first three quarters and current backlogs, EPA now projects rail-car deliveries to total 64,500 in 2007 and 57,500 in 2008.

"In spite of the general weakening in non-ethanol-related equipment demand, we believe year-end backlogs will be sufficient to carry 2008 production activities at reasonable levels in the first half before stronger economic momentum stimulates orders in the second half and into 2009," EPA said in its report.

But even as ethanol- and DDG-car orders moderate, the overall demand for rail cars will "remain on solid footing for a number of years to come" as replacement needs, technological advances and legislative measures affect demand, EPA said. For example, assemblies of coal cars, Class F flat cars, intermodal platforms and box cars all should pick up in 2009, boosting overall deliveries to 59,500 cars in 2009 and 61,300 cars in 2010, EPA said.