Two companies collaborate to build passenger trains in US

Most trains built overseas

Steve Hawley, Feb 24, 10.

Two American companies are launching a joint venture to manufacture rail cars in the United States, according to MarketWatch. The collaboration between Ohio-based US Railcar, LLC and Missouri-based American Railcar Industries, Inc. will build and sell “self-propelled and unpowered passenger railcars in both single and bi-level configurations.” Previously, both companies dealt exclusively with freight rail.

Currently, most passenger rail equipment is produced overseas. Houston’s METRO, for instance, used $64 million in stimulus money - designed to stimulate the American economy - to buy light rail vehicles from Spain because no American companies manufacture such vehicles. However, METRO President & CEO Frank Wilson said that the stimulus money still served its purpose by allowing the transit agency to free up an extra $64 million of its money to spend on American products and services.

Barry H. Fromm, who will serve as one of the project’s managing directors, said, “One of US Railcar Company’s goals is to reestablish [Federal Railroad Administration} compliant [Diesel Mobile Unit] production in the United States.” Michael P. Pracht, the president and CEO, added, “These are extraordinary times with growth opportunities for passenger rail in the US.”

With the sudden growth in transit and rail service in the United States, interest in domestic passenger rail manufacturing has also risen. Some have even suggested that the key to reviving Detroit’s economy is to start producing trains and transit vehicles rather than cars.