October 29, 2018 5:15 PM, EDT

Greenbrier, Saudi Railway Company Form Joint Venture

Greenbrier railcar factory A worker paints a refrigerated rail car at the Gunderson Rail Car Plant owned by The Greenbrier Cos. in Portland, Ore. (Natalie Behring/Bloomberg News)

The Greenbrier Cos. and Saudi Railway Co. have announced that they will together invest and generate investments totaling $270 million in the Saudi rail industry. They plan to establish a joint venture company in Saudi Arabia to execute railway projects and supply rail cars.

The joint venture will invest in assets and infrastructure necessary to expand the Saudi market’s rail service. Greenbrier will provide up to $100 million in new rail cars, lift equipment and others. Saudi Railway Co. (SAR) will provide the locomotives, rail access and service schedules.

The joint venture will operate similar to the model of TTX Co., provider of rail cars and related freight car management services to the North American rail industry, with the potential to expand to serve Gulf Cooperation Council nations.

“The [joint venture] will benefit the people of Saudi Arabia by enhancing the capacity and efficiency of freight and logistics systems in the Kingdom while contributing to local job growth, economic development and national defense mobility,” said William A. Furman, chairman, CEO and president of Greenbrier, per a press release. “As the Kingdom advances economic diversification to improve the life of its people, it will significantly grow its transportation infrastructure.”

SAR and Greenbrier first began a relationship in 2015, when the former awarded the latter a contract to manufacture 1,200 tank wagons for transporting molten sulfur and phosphoric acid — ingredients for fertilizer.