Do We Need Another North American Railcar Builder?
The National Alabama railcar manufacturing facility is now idle.
ARS Canada Rolling Stock Co. is entering the North American freight railcar market with support from a $3 million repayable contribution from the New Brunswick Provincial government in Canada. Here we go again.
ARS is thought to be a venture of CRRC (China Railway Rolling Stock Corp.), a Chinese SOE (state-owned enterprise). Its manufacturing plant, to be located in Moncton, N.B., promises to create 83 jobs, with prospects to grow to 100 jobs over the next two years.
The North American railcar market is extremely cyclical, making it very difficult for freight railcar builders and component supply companies to manage the peaks and valleys. Because of this cyclicality, numerous carbuilders and suppliers have come and gone over the decades. To illustrate my point, below are excerpts from “Don’t We Ever Learn?,” a
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