UNP - GATX-owned railcar implicated in Ohio derailment - WSJ

The railcar that “likely caused” the catastrophic derailment of a Norfolk Southern ( NSC ) locomotive in East Palestine, Ohio was owned by GATX Corporation ( NYSE: GATX ), per the Wall Street Journal .

The Journal, citing “documents and people familiar with the railcar's history and journey,” reported on Friday that the hopper car was owned by GATX Corporation ( GATX ) and manufactured by Trinity Industries ( TRN ). The car was manufactured by the latter in June 1997 and certified for 50 years of service. Since the late 1990s, it has been utilized by four railroad operators, with Union Pacific ( UNP ) putting the car in service as recently as late January with no defects or issues detected.

However, the Journal reported that temperatures from the hopper’s wheelset rose sharply in its trip through Ohio. This resulted in a wheel bearing becoming overheated and failing and helped spark the derailment.

Shares of GATX Corp. ( GATX ) -3% fell sharply following the report Shares of Trinity Industries ( TRN ) and Norfolk Southern ( NSC ) trended essentially flat on Friday.

Read more on Barclays’ bullish call on railroad operators .

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