June 2013 Railway Age Magazine

Page 37

equipment leasing

A mix of freight car types, as seen in this Union Pacific consist, reflects the relatively healthy demand for various equipment needs.

We have also received reports that the market for cement cars is tighter than it has been for some time, perhaps reflecting growing commitments to invest in the nation’s infrastructure.

UNION PACIFIC

Fracking As I said at the beginning of this Guide, the “best of times” are clearly being had by anyone in our industry who has anything to do with the movement of anything that is required for the extraction of hydrocarbons using the latest fracking techniques. As we said above, this certainly includes the provision of leased sand cars to bring sand into the wells at which fracking plays a role in extracting oil

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RAILSOLUTIONS, INC.

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and/or gas. We’re probably also shipping pipe and machinery by rail to these sites. It also includes the tank cars that are being built and leased by a variety of parties to end-users that need to move the extracted oil and gas to wherever it wants to go. But before we go into the leasing industry report we’ve compiled, we thought we would give you some “50,000foot” views on just why rail is such an important component to the fracking story. We have been told by more than one source that one of the profound impressions that they have taken away from discussions with end-users of tank cars for CBR and natural gas is that the costs of buying or renting the cars to transport RailSolutions Offers: • Railroad Equipment Appraisal and Valuation Services • Portfolio Analysis and Lease Valuation Services • Equipment Remarketing • Railcar and Locomotive Inspections, and Technical Services • RailSolutions Publishes the Investors’ Guide to Railroad Freight Cars and Locomotives – A comprehensive reference manual covering market and valuation data on virtually all types of railcars and locomotives used in North American rail freight services.

June 2013 Railway Age 35


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