Trinity Industries: Cross Border Rail Traffic
Trinity Industries, one of the leading railcar manufacturers in North America, was negatively affected by problems in cross-border rail traffic between Mexico and the United States.
This company recorded a year-on-year growth of 50.9% in 2023, to 2.983 billion dollars, and most of its railcars are manufactured in Mexico.
Also at an annual rate, its net profits grew 76.4% to US$106 million.
In September and December 2023, U.S. Customs and Border Protection (CBP) suspended cross-border rail traffic at Eagle Pass, Texas, the main border crossing used for railcar deliveries from Trinity Industries’ manufacturing facilities in Mexico.
According to CBP, this action was taken to assist the U.S. Border Patrol due to the recent influx of migrants at the border.
Although rail traffic operations have resumed at Eagle Pass, there is ongoing instability at the border and there can be no guarantee that similar congestion or border closures will not occur in the future.
The closure of the U.S.-Mexico border by U.S. CBP adversely affected Trinity Industries’ railcar deliveries.
In addition, increased state vehicle inspections have led to truck traffic congestion, which has had a negative impact on this same company’s supply chain.
Trinity Industries
The company actively monitors rail and truck traffic and maintains close contact with all stakeholders, including relevant government agencies, and continues to evaluate available alternatives for rail and truck transportation between Mexico and the United States.
Continued rail and truck congestion at the border could negatively affect its deliveries and supply chain until the congestion is resolved.
Logistics
As a result of disruptions in the global supply chain, the company has continued to experience shortages of materials used to manufacture or repair certain types of railcars, as well as disruptions in the transportation network, which has affected its ability to timely deliver these railcars to its customers.
Trinity Industries owns businesses that are leading suppliers of railcar products and services in North America.
It markets its railcar products and services under the TrinityRail trade name. The TrinityRail platform offers railcar management and leasing services; railcar manufacturing, maintenance and modifications; and other rail logistics products and services.
