The Trinity Industries wagon joint venture in India has expanded after the US company acquired a 32% holding in Touax Texmaco Railcar Leasing.

Trinity takes 32% stake in India wagon venture
Photo: Texmaco

The US-based wagon manufacturer and leasing company is joining the venture⁠ as India’s freight rail growth is expected to create demand for modern wagons. Trinity CEO & President Jean Savage said the country ‘represents a compelling long-term opportunity for rail freight growth’. She added that the joint venture would offer ‘advanced wagon designs, lease finance experience and lifecycle expertise’.

Touax Texmaco Railcar Leasing was initially established by Texmaco Rail & Engineering Ltd, the Indian wagon producer, and Touax, the Paris-based leasing company. Trinity’s entry is intended to strengthen the joint venture’s access to global financing and improve its ability to provide modern rolling stock, professional leasing services and lifecycle management.

Savage said on June 4 that Trinity’s investment reflects a long-term commitment to the venture.

‘Our equity participation reflects a long-term commitment to building a best-in-class leasing platform focused on performance, safety and sustainability’, Savage said on June 4.

Touax CEO Fabrice Walewski described India as a strategic growth market and said Trinity adds ‘significant technological and financial scale’ to the joint venture.

Trinity Industries wagon joint venture targets leasing growth

Texmaco said India wants to raise rail’s share of the freight market from 27% to 45%⁠. According to the company, this target is expected to increase demand for modern wagons and create opportunities for private investment.

The joint venture intends to provide ‘best-in-class’ new wagon designs. These are expected to offer shorter production timelines, lower maintenance costs and better utilisation. Access to global capital and competitive financing is also expected to help reduce costs and accelerate market adoption.

Modern wagons and private investment in Indian freight

Texmaco Chairman Saroj Kumar Poddar said the partnership brings together the strengths of all three companies.

‘This partnership marks a defining moment for India’s freight rail ecosystem’, said Texmaco Chairman Saroj Kumar Poddar, ‘By combining Touax’s leasing expertise, Trinity’s global rail technology leadership and Texmaco’s manufacturing and market strengths, we are building a scalable, resilient and globally benchmarked platform. It aligns closely with India’s long-term objective of increasing rail’s share in freight transportation through private participation and innovation.’