Rolling Stock Solutions, LLC (RSS) announced a new leasing platform focused exclusively on delivering proven, like-new locomotive power to U.S. commuter rail agencies facing challenges to replace and improve an aging locomotive fleet.

RSS is led by experienced U.S. transit industry veterans. Chief Executive Officer Phil Puccia, a former Deputy General Manager of the MBTA in Boston and a seasoned investment banker, noted, "Having spent two decades at the intersection of government operations and finance, I know well the imperative for agency leaders to deliver reliable, best-in-class transit service on a tight budget. We believe the RSS lease fleet provides commuter rail operators with a new, flexible resource to sustain and strengthen their service posture at a reasonable cost."

RSS is joined by its strategic partner Alternate Concepts, Inc. ACI is a is a full-service operator of heavy rail, light rail, commuter rail and bus transit services throughout the U.S. The company is led by two former General Managers of the MBTA.

RSS is sponsored by Adelphi Capital Advisory, a private equity platform with extensive experience capitalizing, building, and growing equipment leasing and finance businesses in the transportation industry.

RSS was created to help commuter rail agencies meet an urgent service delivery challenge – replacing end-of-life diesel-electric locomotives with new capacity which is cleaner and more reliable than the aging locomotives in their fleet.   

RSS will deliver locomotive power to commuter rail agencies from a fleet of proven-model locomotives which are completely rebuilt to like-new condition under standard industry specifications. The initial RSS fleet will include fully overhauled F40PH locomotives.

RSS locomotives will be cleaner (less NOx, hydrocarbon and PM10 emissions), quieter and more reliable than most of the commuter rail locomotives in service today – and, because they are standard specification, RSS locomotives can seamlessly integrate into agencies' existing fleet operations and maintenance programs. The electronics package on RSS locomotives is fully rebuilt to enable installation and integration of an agency's positive train control system.

RSS will provide rail agencies with locomotive power solutions under duration-flexible lease alternatives, giving them – in essence – immediate power on demand to address their most urgent fleeting requirements. RSS locomotives will be 100 percent Buy America compliant, and RSS locomotive lease contracts will be eligible for FTA capital investment funding.

Commuter rail is a vital passenger transit solution for the United States. The industry has grown substantially over two decades, serving 15-20 percent of daily transit trips, relieving congestion, and providing a crucial suburban to urban link.  

An aging locomotive fleet is threatening commuter rail's success, pressuring service reliability, and increasing agency maintenance costs. The average diesel-electric locomotive in the commuter rail fleet is 26 years old – well past the intended useful life – and maintenance costs per passenger mile are up roughly 33 percent over the last several years. Most of the diesel-electric units in service today are pre-Tier 0 EPA rated locomotives, with an emissions profile far below the Tier 4 standards governing new locomotive builds, or even incrementally cleaner intermediate tiers (Tier 0+ through Tier 3) built over the last 20 years.

Compounding this situation, procurement cycles for new build locomotives can now stretch up to 10 years – resulting in escalating capital costs and administrative burdens on the agency. Given a limited US supply base for Buy America compliant Tier 4 locomotives, procurement delays could continue for some time. This would mean further aging of the fleet and continued challenges to service reliability, emissions improvements, and maintenance cost reductions in commuter rail.

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 models, rebuilt to like-new condition.

RSS locomotives are:

• Proven. RSS leases well-established locomotive models - built to standard specs - with a proven performance and maintenance track record in commuter rail.
• Reliable. RSS builds its locomotives to like-new with a 20+ year service life, providing an immediate reliability improvement and lower maintenance cost.
• Cleaner. A fully rebuilt prime mover and Tier 4 HEP delivers a significant reduction in NOx, hydrocarbon, and PM10 emissions and improved fuel efficiency compared to the incumbent fleet of pre-Tier 0 locomotives.
• Quiet. New HEP technology dramatically reduces the noise envelope of RSS locomotives – there are no "screamers" in the RSS fleet.
• Seamless. RSS models are well known to the agency's maintenance work force, and no new training or tooling is required to deploy RSS units into service.
• On Demand. Flexible lease solutions support an agency's capacity problem without a lengthy, complicated, and costly procurement process.
• Eligible for Funding. RSS locomotives will be 100% Buy America compliant, and RSS lease contracts 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 U.S based partner Metro East Industries – both industry leaders with decades of locomotive design and rebuild experience. The RSS fleet will deploy to initial lease operations with commuter rail agency customers in mid-2023.

Rolling Stock Solutions Leadership

CEO Puccia was a former Deputy General Manager of the Massachusetts Bay Transportation Authority (MBTA), the fourth largest transit operation in the United States. He was also Executive Director of the Springfield Finance Control Board, a governor appointment to lead a finance and operational turnaround of Massachusetts's third largest city. Hel worked for 12 years with JP Morgan as an Executive Director in municipal finance and as a commercial banking lead 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 throughout the United States and Puerto Rico. Headquartered in Boston, Massachusetts, ACI helps move over 122,000 trains annually. ACI is led by Jim O'Leary, CEO, and Founder, and Mike Mulhern, Chief Operating Officer. Both Mr. O'Leary and Mr. Mulhern previously served as General Managers of the MBTA.

Adelphi Capital Advisory is a private equity platform focused on leading or co-sponsoring investments in several industry verticals, including transportation, infrastructure, government services, and cybersecurity. The firm has a deep background in transportation leasing and finance, having sponsored or co-sponsored 10 equipment leasing and transportation finance investments, including five active platform companies. Adelphi currently co-sponsors two equipment leasing platforms which together deploy approximately 150,000 intermodal chassis and commercial trailer units on lease to customers in the United States. The firm has sponsored the de novo launch of three freight-bill factoring companies and sponsored growth stage investments in two equipment finance providers where, collectively, these firms have financed more than $3 billion of freight receivables and $1 billion of equipment leases and loans during Adelphi's ownership.