Under this agreement, Marubeni will hold a 49 per cent interest in the Rail Joint Venture, while CFCL Australia will retain a 51 per cent interest. In addition, CFCLA will continue to provide comprehensive commercial and operating services to the Rail Joint Venture under a long term agreement.
The Rail Joint Venture provides short and long term leases of locomotives and rolling stock to rail operators across Australia, providing them with greater flexibility and certainty when negotiating freight haulage contracts.
The rolling stock fleet in the Rail Joint Venture currently comprises 37 diesel electric locomotives (being 3000HP or greater) together with 805 grain and container flat wagons. The fleet has a market value of A$200m. These are modern, well-engineered assets built to a standard specification that are suitable for use across the standard gauge rail network in Australia. High quality rolling stock assets continue to attract strong interest in new and renewal leases from major rail freight operators in Australia despite current economic conditions.
CFCL Australias managing director, Ian Gibbs said The selection of Marubeni as our joint venture partner is an important step in realising the full potential of the Rail Joint Venture. Marubeni brings a wealth of international freight rail experience to the joint venture, together with its extensive experience and interests across the resources, agricultural and industrial sectors in Australia.
The companies bring together the combined experience and know how of managing more than 21,000 rail cars worldwide. Together the companies seek to be the premier provider of railcar and locomotive leasing solutions.
Marubeni Corporation is one of Japans largest listed companies with extensive international trade, contracting, and investments in the rail and transport sectors. Its investment in the Rail Joint Venture represents its first investment in the Australian rail freight sector. The Rail Joint Venture will be the exclusive vehicle by which Marubeni will participate in the Australian freight rail leasing market.
Yuji Shishime, managing director of Marubeni Australia, said Marubeni is pleased to participate in the Rail Joint Venture. Working closely with CFCL Australia, we see enormous potential in the freight rail leasing market in Australia.
The new Rail Joint Venture will be investing in a range of rolling stock that is responsive to operators needs and that will reflect the latest technology and environmentally sustainable rail operations. Our investment will contribute to growing the Australian rail freight task in coming years and will help to reduce carbon emissions by taking more trucks off the road
Ian Gibbs added Marubenis experience is well suited to being a long term partner to CFCL Australia in the Rail Joint Venture. We share a strong view that the future outlook for the freight rail market in Australia is very positive and this will enable the Rail Joint Venture to continue an impressive growth path. We are looking forward to working with Marubeni in further growing this business.
About CFCL Australia
CFCL Australia is a wholly-owned subsidiary of Chicago Freight Car Leasing Co, the 10th largest rolling stock leasing company in North America, currently owning and managing a combined fleet of over 9,300 railcars to a wide range of operator and shippers in the United States. Chicago Freight Car Leasing Co was founded in 1928 and is currently directed by third and fourth generation family members.
Established in 1998, CFCL Australia has rapidly become a leading supplier of leased locomotive power and rolling stock to Australian freight rail operators. It has purchased locomotives from overseas and built near new and remanufactured locomotives to specific design in Australia. CFCLA has also designed and manufactured wagons in Australia as well as commissioning a number of wagons from overseas under strict quality control measures. When current wagon and locomotive build contracts are fulfilled, CFCLA will have under management a rolling stock fleet of over 1,200 wagons and 100 operating locomotives.
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