RAILCAR LEASING
Procor offers a wide range of rail car leasing options to meet your transportation needs.
WHY CHOOSE PROCOR FOR RAIL CAR LEASING?
Procor is Canada’s leading supplier of special purpose and conventional rail cars to bulk shippers and railways. We focus on full service leasing with a nationwide support infrastructure and manage the largest tank car fleet in Canada. Procor’s strength comes from the daily dedication of our employees across Canada who stand behind your full service lease.
Fleet portfolio of more than 30,000 cars to meet your needs
New car construction alternatives
Flexible leasing terms to suit your requirements
LEASING MADE EASY
Procor offers a simplified railcar leasing process. Choose the type of railcar you need from our extensive inventory. Select the lease term that best fits your requirements. Complete the leasing agreement, and get your railcar delivered to your desired location.
CROSS-FUNCTIONAL ACCOUNT TEAM SUPPORT
A complete team aligned with your goals and objectives for a competitive edge
ENGINEERING AND TECHNICAL SUPPORT
Expertise and resources deployable to your facilities for additional support
PROCOR LINK-NET®
Our collection of fleet management tools to assist you in managing your rail car fleet
LEASING FAQ
Find answers to frequently asked questions about rail car leasing.
Supply of tank cars and specialty hopper cars is the shipper's responsibility. Railroads do not provide these cars due to the specialized nature of these cars, more complex maintenance requirements and limited opportunities to bring in backhaul revenue.
Leasing Benefits
Basically, car supply becomes a case of purchasing the equipment or entering into a lease.
Leasing offers:
• Significant financial benefits
• A reduction in risk by taking advantage of lease terms with a much shorter duration than expected asset life
• The flexibility to manage your fleet size and car mix with changing business conditions
• Avoidance of many of the administrative and technical burdens that normally would be the responsibility of the owner.
a reduction in risk by taking advantage of lease terms with a much shorter duration than expected asset life
Procor Full Service
In Canada, the vast majority of shippers requiring tank cars will lease the equipment on a full-service lease basis. However, full-service leases can vary considerably. Take a close look at the level of Procor's value-added services:
• Readily available engineering and technical resources
• Regulatory compliance support
• A repair network that will maximize fleet availability
• Access to fleet information systems
• Commitment to customer service.
Procor's leasing solutions are tailored to your needs, to maximize total value.
To Request Additional Information:
New Customers :
Email: [email protected]
Existing Customers:
Eastern Canada Sales: 905-847-0072
Western Canada Sales: 403-264-1773
Customers may choose a new rail car lease agreement with Procor Limited, Procor Alberta Inc., or UTLX International. Choosing the “right lease” is dependent on where the rail cars will be used and whether a U.S. company or a Canadian company is earning income from operating the rail cars. Subsequent changes in use of the rail car will have tax consequences to the lessee.
Procor or Procor Alberta Inc. Lease
A Procor or Procor Alberta Inc. lease works best for a Canadian customer that earns income from the operation of the rail cars and cars are used in Canadian Domestic or International service. The rail cars will be imported for use in Canada by Procor or Procor Alberta Inc. Provincial sales taxes are applicable. Should a U.S. affiliate use the cars to earn income, the lessee would be exposed to various potential tax consequences.
Potential Tax Consequences
- Income tax rules require that a sublease be created between the lessee’s Canadian and U.S. companies
- Withholding tax is payable and may not be recoverable on cars spending over 50% of time in the U.S.
- Transfer pricing considerations and reporting are required for the cross border lease.
- Additional costs are incurred for recordkeeping, audits and professional advice.
UTLX International Lease
A UTLX International lease works best for a U.S. customer that earns income from the operation of the rail cars and cars are used in U.S. Domestic or International service. Should Canadian affiliates use the cars to earn income, the lessee would be exposed to various potential tax consequences.
Potential Tax Consequences
- Income tax rules require that a sublease be created between the lessee’s U.S. and Canadian companies.
- Withholding Tax is payable and may not be recoverable on cars spending over 50% of time in Canada.
- GST may be payable on lease invoices.
- GST will be payable based on the lease rate if cars operate in Canadian Domestic service for less than 90 days in any year and must be imported and GST paid on the fair market value of the rail car if over 90 days.
- Transfer pricing considerations and reporting are required for the cross border lease.
- Provincial sales taxes are applicable on the lease payment on a miles in PST province/Total miles basis.
- Additional costs are incurred for recordkeeping, audits and professional advice
To Request Additional Information:
New Customers:
Email: [email protected]
Existing Customers:
Eastern Canada Sales: 905-847-0072
Western Canada Sales: 403-264-1773
Rail Equipment
If your business plan includes distribution by rail, an early and key planning consideration should be the acquisition of rail equipment – the car specifications, cost, required commitment, order lead times, plus fleet management needs upon delivery.
Procor offers a wide variety of rail car types for lease including non-pressure and pressure tank cars, general purpose and specialty covered hopper cars, flat cars and gondolas. Additionally, new cars can be constructed to your specifications.
Tank Car Design & Manufacturing
In addition to a large portfolio of existing equipment, Procor has the flexibility to meet customer needs with new cars – ranging from small production runs to several hundred cars. Procor’s car supply alternatives include access to Union Tank Car’s production space, with a full complement of engineers involved in the design and manufacture of tank cars and components.
Union Tank Car’s wholly-owned subsidiary, UTLX Manufacturing, Inc., manufactures a complete line of tank cars at the Alexandria, Louisiana facility. The Alexandria plant is the world’s most advanced tank car manufacturing facility. It was designed with a four-lane in-line process and employs lean manufacturing concepts.
Continual advancements in manufacturing technology have resulted in many product features that are only available on cars built by UTLX.
UTLX has a firm commitment to training and continuous improvement as part of its Managing Total Quality (MTQ).
Procor has maintenance and repair capabilities when and where you need them, to minimize out-of-service time. Procor’s extensive service network consists of repair shops, mini-shops and mobile repair teams across Canada and Network Scheduling resources. As the Canadian affiliate of Union Tank Car, we also have access to our parent company’s maintenance facilities in the United States and Mexico. The result is more than 120 locations to serve you. Additionally, Procor has access to contract shops throughout North America.
Engineering & Technical Support
As a leader within the community of car builders, lessors and shippers, Procor is actively involved in Canadian and U.S. regulatory matters, and participates in the activities of the Association of American Railroads (AAR) Tank Car Committee and other industry organizations. We have a full engineering department in Canada to keep you informed of applicable regulatory developments and to provide technical advice on car design and modification programs. We also develop and monitor planned inspection and maintenance programs to maximize fleet availability and reliability.
Procor Link-Net® Fleet Management Tools
Procor’s ongoing leasing support includes Procor Link-Net®, our industry-leading collection of fleet management tools. These powerful, easy-to-use tools provide access to outage tables, single car mechanical features, on-line car shopping, shop status information, car assignment activity, fleet data downloads and much more. Additionally, reports can be set-up for automatic e-mail distributions.
Procor Knowledge Centre
Procor Link-Net® users have access to our Knowledge Centre providing easy access to information on a wide variety of fleet management topics such as fleet planning, car specifications, choosing the right lease, the car shopping process, on-site repair capabilities and how mileage equalization works.
Circular OT-57 Loading Authorization
The OT-5 Loading Authority (OT-5) system has retired effective January 2, 2020. It has been replaced by the new Loading Authority (OT-57) system.
Loading Authority OT-57 replaces Loading Authority OT-5. OT-5 is retired effective January 2, 2020.
The Loading Authority OT-57 system provides a centralized, paperless process for registering private freight rail equipment and access to controlling entity (shipper, owner or lessee) contact information and storage information. It facilitates the potential placement of private freight rail equipment at specified storage locations on a railroad.
Click here to access the latest information on the Railinc website about the Loading Authority (OT-57) system:
- OT-57 Loading Authority Update Notification
- OT-57 Loading Authority OT-5 Replacement Notification
- OT-57 Loading Authority Controlling Entity Notification.
For private rail equipment to be entered into loaded revenue service, private rail cars should be registered in the Loading Authority OT-57 system, as specified in the Association of American Railroads’ OT-57 Circular, effective since 2020.
The controlling entity (railcar owner or lessee) or its representative is responsible for registering cars within the Loading Authority OT-57 system.
Getting Started
To access the OT-57 system:
1. Register for a reporting mark or Railinc Company ID using the Railinc Onboarding Application. There is a one-time setup charge for registering a company ID with Railinc.
2. Verify that your controlling entity contact information has been entered into FindUs.Rail.
3. To access the OT-57 system, go to the Single Sign-On (SSO) portal on Railinc’s home page. Follow the instructions to register or log in. Contact the Railinc Customer Success Center by email at [email protected] or by phone at
877-724-5462 with questions.
4. Request permission to access Loading Authority OT-57 as a fleet manager.
After you receive an email from Railinc confirming approval of your permission request, you may log in to www.railinc.com with your Railinc SSO and use the Loading Authority OT-57 system.
Loading Authority OT-57 resources are available to download, including the User Guide and FAQ document links.
RAIL CAR GALLERY
Explore our diverse collection of rail car images
LEASE RAIL CARS TODAY
Procor offers a wide range of rail car leasing options to meet your transportation needs.
