Frequently Asked Questions

What type of lease is right for my company?

Full service lease – This type of lease is designed for companies that want to limit their railcar maintenance expense. Under a Full Service lease, the Lessor is responsible for the ad valorem taxes on the cars and most of the repairs including wheels, airbrakes and other normal running repairs. The railcars are marked with the Lessor's private railcar mark and numbers. RGCX offers full service lease terms ranging from 3-10 years with rent for the cars being paid on a per car per month basis.

Net lease – This type of lease is designed for companies that prefer to retain full management of their railcars. Under a net lease, the Lessee is responsible for all maintenance, repairs and ad valorem taxes on the cars. The railcars are marked with the Lessee's private railcar mark and numbers and the Lessee is responsible for registering the cars in UMLER and The Official Railway Equipment Register. RGCX offers an option, unlike other Lessors, whereby the railcars are marked with RGCX's mark and the maintenance is managed by RGCX. Those maintenance costs are then passed through to the Lessee. RGCX offers full service lease terms ranging from 3-10 years with rent for the cars being paid on a per car per month basis.

Per Diem – This type of lease is sometimes used by railroads. The maintenance responsibilities are similar to that of a Full Service Lease. The railcars are marked with the railroads mark and numbers. Rent for the cars is paid through a car hire mechanism used by the operating railroads.


What type of car is right for me?*

Boxcars – paper, forest products, appliances

Gondolas – scrap steel, coiled steel

Small Cube Covered Hopper – sand, cement, fly ash

Medium Cube Covered Hopper – fertilizer, grain, grain products

Large Cube Covered Hopper – plastic pellets, chemicals

Open Top Hopper – aggregates, ballast

Tank Cars – veg oils, chemicals, hazardous products

*list not intended to be fully inclusive


Who governs railcar safety?

The Federal Railway Administration (FRA) governs railcar safety in the United States.. The FRA is an agency under the United States Department of Transportation (USDOT) whose purpose is to enforce railway safety and conduct research and development to further railroad safety, among other things.

In Mexico, the Railway Transport Regulatory Agency (Agencia Reguladora del Transporte Ferroviario), which, in conjunction with the Communications and Transportation Secretariat (Secretaria de Comunicaciones y Transportes) and its Rail Transport Directorate (Dirección de Transporte Ferroviaria), submits to the same regulatory framework as the AAR and FRA of the United States.

In Canada, Transport Canada is responsible for transportation polices and programs. It promotes safe, secure, efficient and environmentally-responsible transportation. It works with its portfolio partners, other government departments and jurisdictions, and industry to ensure that all parts of Canada's transportation system work well.


What do these railcar terms mean?

Bad Order - a tag placed on a car indicating repairs that need to be performed.

Class I railroad – a railroad having annual operating revenues in excess of $433 million.

Damaged and Defective Car Tracking (DDCT) – automated system that tracks railcars.

Demurrage – a charge assessed by a railroad for delays in loading or unloading cars.

Early Warning - provides a method for the rail industry to identify mechanical problems on rail equipment which could impede the safe movement or handling of the equipment.

Equipment Health Management System (EHMS) - a web-based application that communicates the condition of railroad equipment and sends alerts to the responsible parties when repairs are needed.

Rule 90 from the AAR - the age at which cars must be retired from interchanged service. This age varies by original in service date and type of railcar.

Standard Gauge – a measurement between the rails equaling 4 ft 8 ½ inches.

UMLER System - an electronic resource that contains critical data for North American transportation equipment.