The purchase of 72,000 53-foot chassis from rival TRAC Intermodal expands Direct ChassisLink, Inc.’s (DCLI) asset base as the company builds a single platform to manage marine and domestic chassis.
Direct ChassisLink, Inc. (DCLI) has agreed to acquire the fleet of rival TRAC Intermodal’s 72,000 domestic chassis, a major consolidation within the chassis leasing market, the company said in a statement Wednesday.
DCLI will acquire TRAC’s fleet of domestic 53-foot chassis “and related customer and hosting contracts with major Class I railroads and intermodal shipping companies throughout the United States.”
Financial terms of the transaction, expected to close in January 2018, were not disclosed.
“As a result of this acquisition, DCLI will own, lease, or manage approximately 136,000 marine chassis, as well as approximately 80,000 domestic chassis, for a total chassis fleet of over 216,000,” the company said in a statement. “In addition, through its REZ-1 asset management platform, the company manages over 86,000 domestic intermodal containers for third parties.”
DCLI said it is also entering into an agreement with TRAC for certain back-office functions until a complete system migration is accomplished. Following the integration, DCLI will operate a single platform for intermodal marine and domestic chassis leasing services over an expanded national footprint encompassing all major ports and railway terminals.
“The acquisition of TRAC’s domestic business accelerates our vision to create the leading intermodal asset leasing, management, and services platform for the transportation and logistics industries,” said Bill Shea, chief executive officer of DCLI. “New customers will benefit from enhanced technology-enabled service offerings and an expanded national footprint across the marine and domestic intermodal industries, while our existing customers will continue to receive the same high degree of customer service they have come to expect. We look forward to closing the deal and beginning the integration process.”
The structure of the chassis market in North America has been the topic of much discussion the past three years, ever since liner carriers eased themselves out of a model in which they owned the chassis. Into that breach stepped chassis leasing companies, who provide chassis to multiple parties, including carriers, logistics companies, trucking and drayage firms, and beneficial cargo owners.
DCLI acquires TRAC domestic chassis fleet
