deugro Takes On Dedicated Rail Asset in North America

deugro (USA), Inc. has entered into an exclusive usage agreement for a 16-axle railcar, starting February 2020. With the addition of this strategic asset, deugro is among a small team of operators managing this type of specialist railcar across all of North America. The long-term agreement enables deugro’s Specialized Transport Division to offer an eco-friendly, safe, integrated rail solution from a single source.

This particular 16-axle railcar design has the longest loading deck of all 16-axle designs (12.19 m / 40 ft) in North America and will be mainly deployed to transport heavy transformers, turbines, generators and other complex, over-dimensional equipment packages. The company’s focus is on transporting heavy cargo via the railroad network across North America, covering the USA, Canada and Mexico.

The investment into this specialist railcar is part of deugro’s expansion into rail services and strategy to increase the company’s commitment to the rail industry. deugro expects to be able to provide the market a higher frequency of transformer transports in the future, and also an increase in out of gauge cargo size. Due to the aging power supply infrastructure in the USA and a rising amount of wind energy projects in the renewable sector, deugro foresees an increased market need for heavy rail transportation now and in years to come. The first contract using the 16-axle railcar is already signed and will be executed in May of this year.

Compared to typical road transportation, the 16-axle railcar offers an environmentally friendly solution. Other advantages to consider are transport envelope restrictions (maximum dimensions and weight allowable for road transportation), including time-consuming road permitting processes, likewise giving rail transportation a competitive edge over road.

“deugro’s dedicated Specialized Transport Division, located in Houston, TX, has successfully executed dimensional rail movements since 2015 with a noticeable recent increase in activity. This is the logical next step to combine our experience and capability with our own equipment. Having the railcar at our disposal allows us to have more flexibility to better meet our client’s needs and allows us to be able to offer a full rail package from a single source,” said Drew Roberts, Senior Manager of the Specialized Transport Division.

The 16-axle railcar_1