Trinity (TRN) To Invest In New Railcar Maintenance Facility
Zacks Investment Research | May 21, 2019 04:45AM ET
Trinity Industries, Inc.’s (NYSE:TRN) wholly-owned subsidiary — TrinityRail Maintenance Services, Inc — has announced the development of a new railcar maintenance services facility in Shell (LON:RDSa) Rock, IA. The chosen location will allow Trinity access to Class I railroad network as well as the upper Midwest.
The new facility, expected to begin operations by 2020-end, will offer services like repairs and maintenance, coatings, cleaning, inspections as well as testing. Besides enhancing customer experience, the railcar service facility will expand the company’s internal network and operational flexibility.
The expansion initiative marks the company’s progress toward its goal of internally servicing nearly half of its fleet, which comprises 123,000 owned and managed railcars. Trinity also aims to improve business returns through this endeavor. Benefits from the full-service facility is expected to be accretive to financial results by 2021-end.
Trinity has a planned capital expenditure of $60 million set for the construction of the facility. Nearly half of this investment is scheduled in the current year. The company’s capex projection for 2019 is exclusive of this investment.
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