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GCC is a leading supplier of cement, aggregates, concrete and construction-related services. CIT Rail’s lease products provided GCC with the flexibility to expand its business while minimizing capital expenditures.
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Transaction Overview:
GCC initially owned plants in Chihuahua, Mexico and distributed product in the United States through regional facilities in Texas and New Mexico. In the early 1990’s and into the late 2000’s, GCC’s growth strategy was to expand its distribution reach throughout the United States, which included opening a new cement plant in Pueblo, CO. GCC saw an opportunity to test new markets by using railcars for both transportation and as temporary storage to offload product at new locations where full facilities were not yet available. This strategy allowed GCC to expand into new markets while minimizing its investment and operating costs until geographic markets were more developed. It was critical for GCC to have a railcar partner to maximize flexibility and efficiency in supporting its growth efforts.
Solution/Results:
As part of its strategic growth process, GCC partnered with CIT Rail to lease covered hopper railcars from its young and high-capacity fleet. Apart from providing competitive rates, CIT delivered in-depth knowledge of its business, coupled with a responsive and reliable team for support and guidance in backing GCC’s operational initiatives. CIT Rail’s lease products provided GCC with the flexibility to expand its business while minimizing capital expenditures. Together with CIT Rail, GCC was able to increase volume and revenue.
“CIT provides more than just a transportation asset,” commented Fernando Barney, Supply Chain Optimization Manager, GCC of America, Inc. “They provide us with peace of mind through their advanced knowledge of the broader market, their responsive and client-focused approach and their unwavering dedication to get it right.”
With this expansion strategy and the CIT Rail partnership, GCC was able to develop the new markets to support the acquisition of a 500,000 ton cement manufacturing facility in Tijeras, NM and distribution terminals in Albuquerque, NM and El Paso, TX.
As GCC’s business has expanded, they have continued to rely on CIT’s expertise and today GCC leases nearly 700 railcars from CIT Rail. “It has been very exciting to watch GCC grow over the years and to know that we were able to contribute to that growth,” said George Cashman, President, CIT Rail. “We look forward to continuing our long-standing relationship and finding new solutions to challenges yet to come.”
About GCC Rio Grande, Inc.:
GCC is a leading supplier of cement, aggregates, concrete and construction-related services in Mexico and the United States. Founded in 1941, GCC’s shares trade on the Mexican Stock Exchange under the ticker symbol GCC.
CIT Rail leverages deep experience and one of the youngest, most diversified railcar and locomotive fleets in the industry. Our company has a long-standing commitment to providing attractive railcar leasing solutions to rail shippers and carriers. Our solutions free up capital for your growth priorities, increase efficiencies and reduce out-of-service time.
More information at www.citrail.com or email [email protected]
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Behind the Deal with GCC Rio Grande, Inc.
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