Nissan storing vehicles off site to wait on railcars - MSNewsNow.com - Jackson, MS

Nissan storing vehicles off site to wait on railcars

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Nissan says a lack of railcars is causing it to find other areas to store cars fresh off the assembly line. Nissan says a lack of railcars is causing it to find other areas to store cars fresh off the assembly line.
More than a thousand vehicles are parked in lots waiting to be shipped out. More than a thousand vehicles are parked in lots waiting to be shipped out.
A shortage of railcars is prompting Nissan to find lots in the Jackson Metro to store vehicles made at its Canton plant. A shortage of railcars is prompting Nissan to find lots in the Jackson Metro to store vehicles made at its Canton plant.
JACKSON, MS (Mississippi News Now) -

In Clinton, more than a thousand vehicles are parked in lots waiting to be shipped out. Skycopter captured the images Monday afternoon. Nissan vehicles could also be seen leaving the plant in Canton.

Nissan says a lack of railcars is causing it to find other areas to store cars fresh off the assembly line.

"Railroads provide one of the cheapest forms of transportation. So, it's important as companies look to locate they look to lower their operating costs and by driving down the cost of transportation railroads provide that means," explained Director of Existing Industry for the Mississippi Development Authority William "Skip" Scaggs.

Some cars were driven from Canton to Clinton and buses were used to take employees back to the plant.

A chain link fence is being used to keep cars in another lot in Jackson.

Nissan says part of this new storage plan is to meet its "rapidly expanding production growth." Nearly 10 different vehicles are made at the Madison County facility.

Scaggs says he hopes the lack of rail cars means the economy is continuing to recover from a long recession. Leasing businesses can decide the availability of railcars.

"One of the tools that companies, rail companies, will use is, rather than own the cars themselves they may contract out and basically rent the cars. That helps keep off their balance sheet," Scaggs said.

Usually a railroad will own the tracks and the hauling rights on them.

"Larger industries, those that gonna have the high volume, are gonna tend to locate on a class one railroad such as K.C.S. or Canadian National railroad in the case of Nissan," explained Scaggs.

Nissan does not anticipate these new storage lots to interrupt supply to dealers and didn't explain the reason for the shortage in railcars.

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