Railway Supply Institute: Equipment Leasing Committee 

By The Railway Supply Institute

The Railway Supply Institute’s (RSI) Equipment Leasing Committee (ELC) operates as a critical entity within the railway industry, focused on the pivotal issues surrounding car hire arrangements and the leasing of rail equipment. The RSI ELC comprises a diverse group of stakeholder companies deeply invested in the health and vitality of the railcar fleet, including lessors, shippers, and railcar manufacturers.  

The committee is tasked with advocating for policies and regulatory changes that facilitate private investment in rail assets. In recent history, the RSI ELC has actively engaged with regulators and industry partners to address significant challenges within the railcar leasing arena, notably the default car hire rate rule and its impact on the investment climate for new boxcars.  

A key concern that the RSI ELC highlights is the forecasted shortage of railcars, particularly boxcars, as a large portion of the North American boxcar fleet reaches its retirement age. This projected decline significantly threatens the efficiency and reliability of freight transportation, especially for sectors that predominantly rely on boxcars for the distribution of goods, such as the paper and lumber industries.  

The issues presented by the current car hire system, where negotiated rates often fall below what’s necessary to support new boxcar investment, are at the fore of RSI ELC’s work. Arguing for a reevaluation of the default rate rule to ensure rates are responsive to market conditions and allow for reasonable returns on investments is part of the committee’s efforts to promote a robust and self-sustaining boxcar fleet for the future. 

The RSI ELC aims for reforms that resonate not only with equipment lessors but also bolster the overall health and expansion of rail infrastructure servicing various industries. The goal is to foster a more dynamic and market-responsive framework that ensures the availability of railcars and sustains their critical role in a balanced and robust transportation network in North America.  

Furthermore, the RSI ELC’s commitment to representing industry stakeholders in policy discussions and rule-making processes reinforces its role as a catalyst for positive change, providing expertise and comprehensive industry insights to support sustainable economic growth and development. 

For more information contact Sheena Prevette by email or by phone at (424) 332-6756 for more information regarding RSI Equipment Leasing Committee