CAI International to Buy Railcars Under $200m Contract
Transportation finance and logistics company CAI International is seeking to acquire 2,000 newly built railcars over a time frame of three years.
The company will start purchasing various freight and tank cars in the beginning of the second quarter of 2016. However, majority of purchases will be for freight cars.
CAI International CEO Victor Garcia said: “CAI is currently taking delivery of the 920 railcars that it had previously ordered for 2015, all of which are on attractive long term leases. This new order of equipment provides CAI with the opportunity to serve our growing rail customer base with a diversified fleet.”
While the company’s level of commitment will be dependent on the type and quantity of railcars that will be acquired, it is being estimated that the transaction involves an estimated investment of more than $200m.
“Delivery of the railcars is spread over several quarters to provide a steady increase to our railcar portfolio. We will continue to look for additional investment opportunities in new and used railcars that we expect will meet our return expectations.
“This railcar order will assist us in our strategic goal of expanding both our customer base and our overall asset diversification,” added Garcia.