Trinity is one of today’s leading freight car builders. Despite not building their own equipment until the late 1960s, the company has been on an amazing path of growth over the past fifty years and through its acquisitions has one of the most experienced pedigrees in the business.
Trinity didn’t start with railcars. The modern Trinity Industries formed in 1958 from a merger of the Dallas Tank Company and Trinity Steel. The company’s major focus was on tanks for the petroleum and natural gas industry as well as supporting equipment. This included building tanks for rail car use.
After supplying components, Trinity went all-in for their first complete tank car in 1977. Building the complete car offered better profit margins and the company expanded its construction aggressively. By 1980 they were among the top five builders in the US. While building their own line, the company expanded through the acquisition of other car builders through the highly turbulent markets of the 1980s.
This impressive list includes:
- Pullman Standard – 1983
- Greenville – 1986
- Standard Forgings of Chicago – 1986
- Ortner – 1987
- Transcisco Industries – 1996
- McConway and Torley – 1998
- Thrall – 2001
In addition to building rail cars, Trinity has been a leasing cars to the railroads and private companies since 1979. Rail car construction tends to run in hot / cold cycles. Having the lease operation provides a financial buffer for the lean years. Their lease cars, with TILX reporting marks, are a common sight on trains all across North America today.
As you would expect, many of Trinity’s cars look very similar to the designs previously built by the companies they have absorbed. This includes iconic designs like Pullman Standard’s boxcars, Ortner’s rapid-discharge hoppers and Thrall’s well cars. The contemporary Trinity product line includes autoracks, hoppers, boxcars, flatcars, tank cars, gondolas, covered hoppers, coil cars, and well cars. You would be hard pressed to find a freight train on a mainline in North America today that doesn’t include some of their products.
With the growth in crude oil and ethanol shipments in the past decade, Trinity’s roots in tank manufacturing are proving to be a great asset. Tank cars make up more than half of all new car orders today. With new regulations for cars due later this year however, expect to see some changes to the designs. You can also expect Trinity to adapt quickly to meet what might amount to unprecedented demand for the new cars. Earlier this month the company announced plans to reopen a plant in Cartersville, Georgia to build new tank cars.
While the tank car boom should prove lucrative for the company over the next several years, Trinity has hedged its bets for the long term with their other product lines and the leasing operations. In addition to their railcar operations, Trinity Industries still maintains its other industrial operations including tanks and piping, structural and marine products. By all forecasts, we should be seeing Trinity’s cars on the rails for decades to come.