Turn-key Finance and Operations Partners for Industrial Rail Shippers and Site Developers

Most shippers need the big railroads more than the railroads need the shipper. This relationship is highlighted in Precision Scheduled Railroading which is, simultaneously, one of the most financially successful yet non-customer-centric business strategies in recent memory.

Shippers wonder: How can I do business with the railroads? Sitelogx has significant experience working with railroads of all sizes  and is able to spot and resolve costly pain points, including demurrage and accessorial resulting from the impact of PSR along with the implementaion of innovative streamlined operating practices and procedures.

For Existing Rail Operations

• Navigating the world of precision scheduled railroading
• Revisting current practices and optimizing performance

For Proposed Rail Operations

• Selecting sites for optimized multimodal supply chain
• Financing and operating your customized rail requirements

Financing and Constructing your Rail Infrastructure Solution 

Rail supply chains are vastly different from truck and marine supply chains due to the complex and specialized infrastructure a shipper must maintain “inside the gate.”

How much financial and human capital does your firm want to tie up in non-core operating assets? 

If you want to save your capital—both financial and human—for core activities, Sitelogx has an asset-based solution.

What exactly is an asset-based solution?

For existing rail operations, we offer Purchase/Leaseback options to acquire your rail infrastructure and sustain it.   Non-core assets are removed from your balance sheet and management of maintenance transfers to our expert team.

For new projects, we offer Design/Build/Operate programs that bring customized, comprehensive solutions —fronted with the expert guidance you need to create reliability — and keep the project financing off your balance sheet.

What we deliver:

• Our “hybrid triple-net” approach merges the financing and sustainment of your rail-based supply chain assets, relieving your staff of the management burden, leveling the sustainment costs, and maintaining the asset’s condition to a guaranteed state.
• Our fixed payment structure captures all rail-based infrastructure costs and helps you track your true rail-based spend as clearly as your trucking spend.
• We finance the infrastructure solution that’s tailored to your evolving needs

The advantages of our Asset-based solutions include

• Sourcing the most competitive cost of funds
• Accelerating return on capital employed by keeping the infrastructure off the balance sheet
• Professionalizing the sustainment of a highly specialized category of assets

What is “Hybrid Triple-Net”

• We treat a P/L solution similar to a lease on a commercial or industrial facility, where a lease is typically net of taxes, insurance, and maintenance (“triple net”)
• Planning maintenance of railroad track is a unique skill, and optimizing this investment often requires a smaller, sustained investment over many years. This is why Sitelogx addresses “sustainment” before “maintenance,” ensuring that asset investment and condition are optimized over the life of a shipper’s agreement
• Sitelogx plans and executes the sustainment program, funding it with a fixed-rate fee that is funded by the shipper alongside the fixed-rate structure of the P/L agreement—thus avoiding lumpy, out-sized maintenance expenses and smoothing the sustainment cash flow over many years