LOS ANGELES Greenbrier Cos. received orders for 5,600 rail cars valued at about $460 million during its second fiscal quarter ended Feb. 28, with congestion on the tracks helping to boost demand for intermodal platforms, chairman and chief executive officer William A. Furman said in a statement March 3.
The Lake Oswego, Ore.-based company had booked orders for 2,500 rail cars valued at $230 million for its fiscal first quarter ended Nov. 30, according to documents filed with the U.S. Securities and Exchange Commission.
A Greenbrier spokesman couldnt be reached for comment.
The orders include a previously announced award for 1,200 intermodal platforms and orders for gondola cars for metal and scrap. Other orders include "small cube" covered hoppers and tank cars used in the energy and automotive-related markets, as well as "large cube" covered hopper cars for the grain and plastic pellet markets, and box cars for paper and forest products.
"Our business is benefitting from broad-based demand for all of our car types, including increased demand for intermodal platforms," Furman said. "As velocity on the rails slows, we believe there will be an increase in demand for certain rail car types carried in unit trains, such as grain and intermodal."
Tighter safety standards requiring reduced speeds for most trains carrying crude oil are contributing to this congestion, Furman said. Greenbrier has been promoting its design for a tank car with a thicker hull in response to recent safety pressures and a willingness to retrofit legacy tank cars (amm.com, Feb. 6).
Greenbrier has received orders for nearly 8,200 cars in North America and Europe valued at more than $690 million since Sept. 1, the company said.