Fuyo General Lease will acquire a 50% stake in Southwest Rail Industries from Sojitz Corp. of America, marking the Japanese leasing company’s entry into North American freight car operations, Nikkei reported.
The transaction will transform Southwest Rail into an equity-method affiliate of Fuyo, though financial terms remain undisclosed. The Texas-based company manages over 4,000 railcars, primarily tank cars and covered hopper cars serving oil, petrochemical, food and agricultural industries across the United States, Mexico and Canada.
Southwest Rail, founded in 1998, became wholly owned by trading house Sojitz in 2021 as part of the conglomerate’s broader push into North American rail services. Sojitz has systematically expanded its railway footprint, acquiring Canadian repair operator Cad Railway Industries in 2015 and Caltrax in 2017, followed by Texas-based railcar repair business BW Services last year.
The partnership represents Fuyo’s latest international expansion beyond its traditional Japanese market stronghold. The Tokyo-based company, which offers leasing services across aviation, shipping and industrial equipment, has been seeking growth opportunities overseas through its subsidiaries in China, Hong Kong, Thailand and the United States.
Rail transportation comprises up to 43% of all freight transportation in the United States, making the North American market attractive for equipment lessors. Tank cars alone account for approximately 30% of the roughly 1.5 million railcars in operation across the continent.
The deal reflects broader Japanese interest in North American transportation assets, though the undisclosed pricing leaves questions about valuation in a sector where established players dominate market share.
