Officials anticipate bright future

BARTON - Things have rolled along for 96 years for National Steel Car Corp., and officials don't anticipate anything standing in the way of continuing on that path.

During a time when there are concerns about America's economy, the Ontario, Canada, railcar manufacturer is building National Alabama, a plant that will employ up to 1,800 people and churn out thousands of railcars a year.

National Steel Car officials say a reason for that is they want to keep up with demand.

"Our industry has got a more positive longer-term view," said Peter Earle, communications and public affairs counsel for National Steel, which was created in 1912. "Due to our abilities as a rail industry, the long-term view of rail as a transportation mode is very positive.

"We're seeing, in the next few years, the demand going up."

Soaring gas prices have many industries wondering about their economic future and searching for alternate means of transport, Earle said.

"That certainly puts a spotlight on the attributes of rail," he said. "The railroad is four times as efficient on energy consumption, if you look at tons per mile you can deal with."

Greg Aziz, chairman and chief executive officer for National Steel, said company officials are investing some $350 million in the Barton plant.

They wouldn't do that if they didn't have high expectations for the industry's future, he said.

"You're getting a lot of discussion now about a lot of trucking companies using rail for intermodal transportation," Earle said. "Also, major ports in Canada and the United States are being revamped and there's an increased number of goods coming in the U.S., and you're seeing a push to better utilize water and railroad."

The Barton plant's design will allow virtually any type of railcar to be built, Aziz said.

Earle said the company's engineering team constantly works on designs that are better in such ways as providing greater capacity and lighter weight.

"Railcars have a 20- to 40-year life cycle," he said. "The issue is, can you come up with new designs that help make you competitive?"

He said all industrial sectors have short-term cycles, and those could include fluctuating demand for railcars. But long-term indicators point positively toward the industry.

The Barton plant will have the capacity to produce some 10,000 railcars in a year, officials said.

Bernie Delinski can be reached at 740-5739 or bernie.delinski@TimesDaily.com.