GE Rail Services
 |
|
| Subsidiary | |
| Industry | Rail transportation |
| Founded | 1986 (acquisition) |
| Defunct | 2015/2016 (sale) |
| Headquarters |
Chicago Title and Trust Center Chicago, USA |
|
Key people
|
CEO & President : Joe Lattanzio |
| Services | Rolling stock leasing |
| Parent | GE Capital |
| Website | www.gecapitalrail.com |
GE Capital Rail Services, also known as GE Railcar, or GE Railcar Services Corporation was a business unit of GE Capital, a division of General Electric. It is a distinct business unit from General Electric's railway locomotive manufacturer.
GE Rail Services offers leases and manages railcars (railway wagons) for the North American market; its product range includes all types of common freight wagon including box, flat, covered and uncovered hopper (gondola), and tank wagons. The company also manages service and repair of wagons.
In 2015 GE Capital announced the sale of its tank car and services business to Marmon Holdings, and the remainder of the business (other wagons, locos) to First Union Rail.
In 1986 GE Railcar Services Corp. acquired the assets of North American Car Corp, a former rail leasing subsidiary of Tiger International which had become insolvent in 1984; GE acquired ~35000 rail wagons and 14 maintenance units in North America at a cost of $420 million.
In 1989 GE acquired the railcar leasing and management business of Brae Corporation from holding company Leucadia National for approximately $180 million, acquiring 15000 boxcars. With the acquisition GE entered the per diem boxcar leasing business.
In 1992 GE Capital Railcar reached an agreement to lease Itel Rail Corporation's (subsidiary of Itel Corporation) railcar fleet; in 1990 Itel Rail had ~70,000 rail vehicles, approximately one third of which were boxcars, another third covered hopper wagons, the remainder tank, open hopper, flat and speciality wagons. The lease agreement was for 12 years with a purchase option - the agreement brought GE's for lease fleet to ~140,000 units. The agreement moved significant accumulated debt off Itel Corporation's balance sheet; in the late 1989s Itel Corp had expanded aggressively into the North American railcar leasing business through a number of acquisitions, as well as acquiring interests in other related logistics and transportation businesses. GE would pay rental payments of $150 million pa (GE Capital had also acquired Itels container leasing business in 1990 for over $800 million.)
In 1997 GE Railcar entered into a leasing agreement with manufacturer American Car and Foundry Company (ACF) to lease 35000 vehicles (over three quarters of its fleet), with purchase and supplementary agreements to use ACF's repair facilities.
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Wikipedia