Greenbrier: Demand grows for 53-footers
The Greenbrier Cos. said Wednesday it has received orders for more than 1,000 new double-stack intermodal platforms, and will also re-engineer and modify about 1,100 double-stack platforms to carry 53-foot containers.
Value of the new railcar orders and refurbishment work is about $130 million.
The company also has orders for more than 700 new covered hopper cars, but is in discussions with a major barge company that could cancel those orders.
There is “a growing need for 53-foot double-stack well capacity in North America, despite a continued surplus of 40-foot and 48-foot equipment,” Greenbrier said. “The recent strong growth in 53-foot domestic containerization allows railroad shippers to compete effectively with longer and heavier trucks on the nation’s highways.”
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The Intermodal Association of North America said earlier this month that second quarter domestic container volume was up 16.4 percent to a record 1.1 million units.
Greenbrier's orders are from five major North American railroad and leasing companies. A prospectus filed with the Securities and Exchange Commission in April said major customers include Burlington Northern Santa Fe, Union Pacific, and General Electric Railcar Services Corp.
While subject to final documentation, Greenbrier said the railcar orders are considered to be firm commitments.
To support these orders, Greenbrier will increase its workforce by 260 workers at its Gunderson facility in Portland, Ore., bringing total employment to over 900 employees. The company will call back workers furloughed during the industry downturn, as well as new hires. The company will also divert about 175 workers from its oceangoing marine barge construction at Gunderson to new railcar production.
Greenbrier said the marine market is soft, and it is in discussions with its largest marine customer about contracts in backlog due to an industry-wide slowdown in marine demand. It said the customer represents more than 85 percent of its marine backlog — about $75 million as of May 31.
“These discussions may result in cancellation, modification or postponement of the orders. Such an event is likely to occur, and any compensation or alternative production the company receives may not be adequate to replace the lost revenue and margin,” Greenbrier cautioned.
In the same SEC filing, Greenbrier named Crowley Maritime as a major customer.
Greenbrier also expressed concern about the City of Portland’s River Plan, calling it a “long-term threat to marine jobs on the Portland waterfront.” Information about that economic development and environmental restoration plan is available on a site maintained by Portland’s Bureau of Planning and Sustainability. ' Chris Dupin