RSS is led by experienced veterans of the US transit industry. Chief executive officer Phil Pucciaformer Deputy Managing Director of the MBTA in Boston and a seasoned investment banker said, “Having spent two decades at the intersection of government operations and finance, I know well that it is imperative for agency leaders to provide reliable and top notch on a tight budget. We believe that the RSS lease provides commuter train operators with a flexible new resource to maintain and enhance their service offering at a reasonable cost.”
RSS is joined by strategic partner Alternate Concepts, Inc. ACI is a full-service operator of heavy rail, light rail, commuter rail and bus services across the United States. The company is run by two former MBTA chief executives. .
RSS is sponsored by Adelphi Capital Advisory, a private equity platform with extensive experience in capitalizing, building and growing leasing and equipment finance businesses in the transport industry.
RSS was created to help commuter rail agencies address an urgent service delivery challenge: replacing end-of-life diesel-electric locomotives with new capacity that is cleaner and more reliable than the aging locomotives in their fleet. .
RSS will provide locomotive power to commuter rail agencies from a fleet of proven model locomotives that are completely rebuilt as new to industry standard specifications. The initial RSS fleet will include completely overhauled F40PH locomotives.
RSS locomotives will be cleaner (less NOx, hydrocarbon and PM10 emissions), quieter and more reliable than most commuter rail locomotives in service today – and, because it is standard specification, RSS locomotives can seamlessly integrate into the agencies existing fleet. operation and maintenance programs. The RSS locomotive electronics package is completely rebuilt to allow installation and integration of an agency’s positive train control system.
RSS will provide railway agencies with locomotive power solutions under flexible term rental alternatives, giving them – essentially – immediate on-demand power to meet their most urgent short-term needs. RSS locomotives will be 100% Buy America compliant, and RSS locomotive leases will be eligible for FTA capital investment funding.
Commuter rail is a vital passenger transport solution for United States. The industry has grown significantly over the past two decades, serving 15-20% of daily transit trips, relieving traffic congestion and providing a crucial link between suburbs and cities.
An aging locomotive fleet threatens the success of commuter rail, puts pressure on service reliability and increases agency maintenance costs. The average diesel-electric locomotive in the commuter fleet is 26 years old – well beyond its expected useful life – and maintenance costs per passenger mile have increased by around 33% in recent years . Most diesel-electric units in service today are EPA Tier 0 pre-classified locomotives, with an emissions profile well below the Tier 4 standards governing new-build locomotives, or even progressively cleaner intermediate levels ( Tier 0+ to Tier 3) built over the last 20 years.
To compound this situation, procurement cycles for new locomotives can now extend up to 10 years, leading to increased investment costs and administrative burdens for the agency. Given a limited US supply base for Buy America-compliant Tier 4 locomotives, supply delays may continue for some time. This would mean further aging of the fleet and continued challenges in service reliability, improving emissions and reducing commuter train maintenance costs.
RSS was created with the specific purpose of helping agencies meet their fleet challenges by offering immediate locomotive capacity on flexible lease terms in proven, rebuilt-as-new models.
The RSS locomotives are:
- Proven. RSS leases well-established model locomotives – built to standard specifications – with proven performance and service history in commuter rail.
- Reliable. RSS builds its locomotives like new with a lifespan of over 20 years, providing immediate improvements in reliability and reduced maintenance costs.
- Cleaner. A completely rebuilt main engine and Tier 4 HEP provides a significant reduction in NOx, hydrocarbon and PM10 emissions and improved fuel efficiency compared to the current fleet of pre-Tier 0 locomotives.
- Calm. The new HEP technology significantly reduces the sound envelope of RSS locomotives – there are no “screamers” in the RSS fleet.
- Transparent. RSS models are familiar to agency maintenance personnel, and no new training or tooling is required to deploy RSS units in service.
- On demand. Flexible leasing solutions take care of an agency’s capacity problem without a long, complicated and expensive procurement process.
- Eligible for financing. RSS locomotives will be 100% Buy America compliant and RSS leases will be eligible for FTA capital investment funding.
RSS is currently overhauling its initial fleet of F40PH locomotives through a comprehensive rebuild partnership with CAD Railway Industries and their US partner Metro East Industries – both industry leaders with decades of experience designing and rebuilding locomotives. The RSS fleet will roll out for initial rental operations with commuter rail agency customers in mid-2023.
About rolling stock solutions
Rolling Stock Solutions is a first-of-its-kind American transit solution that provides commuter rail agencies with proven locomotive power, built in like-new condition, on flexible lease terms.
About: RSS Branch
Chief executive officer Phil Puccia was a former deputy chief executive of the Massachusetts Bay Transportation Authority (MBTA), the 4th largest transit company in United States. Phil also served as executive director of the Springfield Finance Control Board, a governor appointed to lead a financial and operational turnaround of from Massachusetts 3rd largest city. Phil worked for 12 years at JP Morgan as executive director of municipal finance and as head of commercial banking in healthcare, education and non-profit institutions.
Alternate Concepts, Inc. (ACI) is a full-service operator of heavy rail, light rail, intercity and commuter rail, and bus transit services across United States and Porto Rico. Based at Boston, MA, ACI helps move more than 122,000 trains a year. The ICA is led by Jim O’LearyCEO and Founder, and Mike Mulhern, Chief Executive Officer. Mr. O’Leary and Mr. Mulhern were previously chief executives of the MBTA.
About Adelphi Capital Advisory
Adelphi Capital is a private equity platform focused on leading or co-sponsoring investments across multiple verticals including transportation, infrastructure, government services and cybersecurity. The firm has a strong track record in transportation leasing and finance, having sponsored or co-sponsored ten equipment leasing and transportation finance investments, including five active platform companies. Adelphi currently co-sponsors two equipment rental platforms which together deploy approximately 150,000 intermodal chassis and commercial trailer units rented to customers in United States. The company sponsored the de novo launch of three freight bill factoring companies and sponsored growth-stage investments in two equipment finance providers where collectively these companies financed more than $3 billion freight receivables and $1 billion leasing and loaning equipment during Adelphi ownership.
SOURCE Rolling Stock Solutions