Given the recent tight freight car supply in the U.S. have the Chinese successfully penetrated the U.S. freight car market with freight cars built in China to U.S. standards?
I have been hearing rumors, but I am not aware of any cars built overseas that are in active U.S. service, but given the very high freight car prices and the tight supply it can only be a matter of time, especially among cars that are non-hazmat.
LC
I wouldn’t doubt it L.C. I watched a Lou Dobbs report on CNN and some senate commitees are really concerned about that whole Chinese purchase of that oil company. According to U.S chairman of the securities commitee Senator Huntsman I believe, he is convinced that China is buying up of researves in fuel and is doing it in preparation of invading Taiwan despite U.S objections.
I believe the chinese will be making a attempting to make money whatever way it can get such as selling U.S standard railcars in order to pay for their military requirements. I heard that China will add billions more to the offer if Unical was considering going in favour of Chevron’s.
Does this sound like pre-war postering to you too on China’s part?
I would not surprise me in the slightest way if we began getting our freight cars from China. Us Americans have a thing about being cheap, and sooner or later, we’ll be owned by an Asian country. It’s just a matter of time.
Many of the COFC containers used domestically are made in China by Jindo, a Korean company. Pacer, The Hub Group and others use them. Note, these are not 40’ steamship boxes, but rather, 53’ domestically used boxes, but are built of corrugated steel like the steamship boxes. They are also used in some of the rail controlled fleets such as CSXU’s, STAX boxes, and others. (PS: I agree that we’re selling the U.S. and our future to China with every steamship that lands at the Port of LA/Long Beach, Seattle-Tacoma, Oakland, Houston, Savannah, Charleston, Norfolk, NY-NJ)
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We already get freight cars from Canada and Mexico due to globalization of U.S. railcar manufacturers, and Greenbrier has alliances in Europe, so it’s not inconcievable that U.S. freight cars might be made in Europe if the currency situation flip flops. But I know of no U.S. railcar manufacturers with alliances in China. Of course, that doesn’t mean it can’t happen, given their lower wages and the pegging of their currency to the U.S. dollar (which guarantees Chinese made products will always be cheaper in the U.S.)
I don’t think China is about to wage aggressive war, I do think they will follow the Japanese approach and wage aggressive economics. They have many mouthes to feed, they want higher living standards, and they will certianly do everything they can to export. Like the Japanes have done. I think the USA should try to be competitive itself, and a sound energy and transportation policy is needed for that to happen, including understanding the subsides for highway and aviation transportation from LAND USE.
I would agree if their military budget would mean that the Chinese navy would exceed in power of the U.S in 10 years the way they are spending money. They bought and are continuing to buy massive amounts of missles such as the Sovereign class that can destroy aircraft carriers.
Their aggressive build up should be examined more closely. I am begining to believe that NATO must prepare and NORAD must as well just in case. I say within 20 years if not sooner, they may make their move.
Back on point - and this scares me quite a lot, so much U.S. foundry capability has been lost that we are having to import the sideframes used on freight car trucks - from China (per TTX Corp.) The ability to import these has been a limiting factor in production of intermodal cars over the last few years. Given the military significance that U.S. RR’s have played in past war times, its kind of scary to be that beholden to the potential aggressor for a critical transportation component.
Actually there are no technological barriers to the Chinese entering our market, and their technology is closer to ours than is the European’s.
Technical standards are set by the AAR and some parts require plant inspection as a condition of approval. If I were them, I would start with castings which are in short supply at the moment, draft gears, and truck components. These have higher values per pound than the entire car.
Next would be to fabricate car bodies, except for tank cars at least to start. Problem would be shipping as they are bulky and heavy. Would probably do final assembly at point of import, say Portland OR, which has been losing business and would probably have space available. Gunderson has a plant right on the Willamette River. I would use American air brake parts, again to start, but since much of their technology is old copies of ours, they may be pretty close on air parts too.
Their problem is that the business is very cyclical. I am sure they could sell cars when everyone’s order books are full but suspect would be very lean in down cycles.
Mac