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U.S. Railcar LLC would base its manufacturing in Ohio, employ between 100 and 200 workers
By Marla Matzer Rose
Columbus Dispatch
Published on Saturday, Jul 04, 2009
Eyeing federal stimulus money set aside for transportation projects, a Columbus company has purchased a defunct manufacturer of diesel-powered passenger railcars and is talking to the state about basing manufacturing operations in Ohio.
U.S. Railcar LLC would employ between 100 and 200 workers once a manufacturing site is established, said Barry Fromm, chief executive of financial-services firm Value Recovery Group, the lead investor in U.S. Railcar.
''It's not the only impetus, but when there are billions in stimulus funds in the wings, that can't hurt,'' he said.
His company is in talks with economic development officials in Ohio and several other states about establishing a manufacturing site as soon as possible.
The Ohio Department of Development has had initial conversations with U.S. Railcar, department spokesman Robert Grevey said, adding that ''a lot of details remain to be seen'' regarding the specifics of the operation before U.S. Railcar could be considered for job-creation incentives.
The price paid for U.S. Railcar, whose ownership also includes other private investors, was not disclosed.
U.S. Railcar is the only company in the U.S. that produces a type of self-propelled, diesel-fueled railcar to run on normal train tracks. The cars run quietly and are fuel-efficient, he said. He hopes to play on the American-made angle when bidding on projects.
Another company also might benefit from the deal.
Columbus Steel Castings makes railcar undercarriages that have been used on the U.S. Railcar products in the past. Fromm said he has met with the company recently and ''hopes to be able to work with them in the future.''
U.S. Railcar traces its history to Colorado Railcar Manufacturing, which sold its cars to commuter-rail systems in suburban Portland, Ore., and Orlando, Fla., before it faltered and was taken over by its lead bank.
In January, the Florida Department of Transportation was said to be scrambling to figure out how to maintain its 10 Colorado Railcar cars with the company out of business, The Tampa Tribune reported. Oregon media reported on cost overruns and equipment problems in Portland, where transportation agency TriMet bought cars to service commuters between the suburbs of Wilsonville and Beaverton but deliveries weren't made on time.
Fromm said he's confident that the company's product is sound and that, under new management, it will be embraced.
''I don't want to disparage the former management. They were in a prestimulus world,'' Fromm said. ''Entering the transit industry at that time as a small player was a stroke of genius. But there were other factors, including their accounts receivable, that brought them down.
Eyeing federal stimulus money set aside for transportation projects, a Columbus company has purchased a defunct manufacturer of diesel-powered passenger railcars and is talking to the state about basing manufacturing operations in Ohio.
Get the full article here.
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