Greenbrier, Watco dissolve GBW Railcar Services venture

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PITTSBURG, Kan. – Watco Companies, LLC, and The Greenbrier Companies, Inc. (NYSE: GBX) have entered into an agreement to discontinue their GBW Railcar Services (GBW) railcar repair joint venture. Under the agreement, the repair shops and employees at each location will return to management by their previous operators. The plan enables each company to meet the demand for railcar repair services following their individual operating strategies.

GBW was formed in 2014 by combining the Watco and Greenbrier shops into a nationwide network of railcar repair facilities. The venture was initiated to address the anticipated demand for tank car repairs and tank car retrofits for the crude-by-rail market, a demand that never fully materialized. The assets and employees of 12 shops will return to Greenbrier and 14 shops and four mobile shops will be transferred to Watco.

Rick Webb, Watco executive chairman, and GBW’s current operations leader said, “GBW was formed to provide capacity to service, recertify, and retrofit North America’s tank car fleet. However, the volumes anticipated at the time the joint venture was formed never developed, and the plan to dissolve the venture is the best course of action. Greenbrier has been a great partner since 2014 and will continue to be a valued Customer and supplier.”

“We look forward to resuming operations of our legacy shops and bringing the mechanical team members, old and new, back into the Watco family, said Dan Smith, Watco CEO. “We value our relationship with Greenbrier and look forward to working with them on future endeavors.”

–From a Watco press release
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