On track: Renewed economic growth and increasing shale oil and gas production are expected to drive demand for railcar leases
Railroad Car Rental & Leasing
The Railroad Car Rental and Leasing industry exhibits a medium level of market share concentration, with the five largest players, Wells Fargo Rail, Trinity Industries Inc., Union Tank Company, CIT Group Inc., and GATX Corporation, dominating the industry. Over the five years to 2019, these operators have held a firm grip on their industry position through various acquisitions. Each player offers a unique fleet mix, including intermodal, tank, autorack, hopper and gondola cars.
Large companies expand through acquisitions
• Over the five years to 2019, large industry operators have further secured their status by completing small and large mergers and acquisitions. Most notable, Wells Fargo Rail, was created in 2016 when Wells Fargo purchased the majority of GE Capital Rail Services, merging it with Wells’ own First Union Rail Corporation. Through the acquisition, Wells purchased one of the oldest industry players, with GE operations beginning in 1907.
Price point and quality of service drive internal competition • Industry operators compete on several factors, including rates, asset availability, reliability and reputation. To a very large degree, railcars have standardized, making them more commoditized. As a result, lessors have less opportunities to differentiate themselves and their assets, making lease rates the prime means by which to compete. Asset availability is another important variable in industry competition. Operators that do not have the right type or quantity of railcar run the risk of customers going elsewhere. Lastly, the companies that have sound reputation for customer services and reliability are better able to differentiate themselves and win new business. In most of these factors, the industry’s largest operators have a clear advantage in achieving economies of scale.
Companies operating in this industry rent or lease railroad cars to customers who move freight across railroads. Renting or leasing railcars enables downstream customers to avoid incurring the capital costs of purchasing a railcar from a manufacturer.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Our reports have been used by over 10K customers, including:
Oman 2021 - Trends and Opportunities for Business in the Sultanate of Oman - MEED Insights
Over the past few years, there has been a significant escalation in project activity in Oman with several notable megaprojects completed such as the Duqm refinery, the new Muscat international airport,...
The global vacuum interrupter market is projected to reach USD 3.1 billion by 2025 from an estimated USD 2.4 billion in 2020, at a CAGR of 5.1% during the forecast period. This growth can be attributed to factors such as expansion in transmission & distribution networks, upgradation & modernization of aging infrastructure for safe & secure...
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Global Marking Materials Market Report
The global marking materials market is expected to grow at a CAGR of over 4% during the period 2019–2025.
The global marking materials market will be shaped up differently during the forecast period...
The Japan Third-Party Logistics (3PL) market is expected to register a growth rate of over 5.8% during the forecast period of 2020-2025. Over time, Japan has made great developments in the supply chain space embracing digital technologies to transform a traditional. In recent years, the socioeconomic circumstances surrounding logistics changed...
The Australia’s CEP market is expected to register a CAGR of 5.46% over the forecast period, 2019 – 2024. Australia’s parcel market is expected to grow to more than 1 billion parcels a year by 2021. The parcel delivery market is seeing an exponential growth backed by ease of shipping, delivery and tracking parcels domestic and internationally....
In transit: Rebound diesel fuel prices will likely bolster industry revenue Abstract Local Specialized Freight Trucking in the US The Local Specialized Freight Trucking industry, which transports oil, ores, grains, gases, frozen food and other freight that requires specialized trailers, has expanded...
Off the rails: Despite steady demand, revenue has declined due to setbacks in fuel prices Abstract Rail Transportation in the US The Rail Transportation industry comprises companies that operate railroads across the United States. This includes large railroads (Class 1 railroads) and regional and local...
Down the pipeline: Renewed industrial production is expected to bolster demand for diesel fuel Abstract Refined Petroleum Pipeline Transportation in the US The Refined Petroleum Pipeline Transportation industry has performed well over the five years to 2019. Higher transport fees flowed down to the...
The Global Machine Condition Monitoring Market (henceforth, referred to as the market studied) was valued at USD 3144.98 Million in 2019, and it is projected to be worth USD 4762.62 Million by 2025, registering a CAGR of 9.02% during the period of 2020-2025. One of the primary goals for any business is the prolonging of an asset’s lifecycle...
Abstract Freight Rail Transport in China The Freight Rail Transport industry in China operates railways for the transportation of freight across China. The industry comprises state-owned railways as well as local railways (invested and operated by local governments) for transferring freight or cargo. The management...
You can change your Cookie Settings at any time but parts of our site will not function correctly without them.