Herzog Railroad Services, Inc.

What Herzog Railroad Services, Inc. does

Herzog Railroad Services, Inc. (HRSI) is a St. Joseph, Missouri-headquartered subsidiary of Herzog Contracting Corp., operating as a core division of the Herzog family of seven companies. Founded in 1969 as an asphalt paving business, Herzog diversified into railroad construction in 1972 and now deploys what it describes as the most comprehensive in-house-designed fleet of specialty railroad maintenance equipment in North America. HRSI's core products are proprietary equipment innovations including GPS-enabled ballast trains, the Automated Conveyor Train (capable of unloading in 13-degree curves at up to 2,000 tons per hour), the CarTopper self-propelled material handler, the Multi-Purpose Machine, the Rail Unloading Machine, the Automated Tie-Down Car, and a LiDAR-based Herzog Survey Platform, alongside a 4,000+ railcar leasing fleet and AAR M-1003 certified railcar repair facilities in St. Joseph, MO and Falls City, NE. Sister subsidiaries extend the platform into ultrasonic rail testing (Herzog Services, Inc.), Positive Train Control systems integration and GIS software (Herzog Technologies, Inc.), and passenger rail O&M including 17 active contracts moving 36 million passengers annually (Herzog Transit Services via TASI).

HRSI serves Class 1 freight railroads (BNSF, Union Pacific), short line railroads, rail transit agencies (Caltrain, Tri-Rail, MBTA, NCTD, RTD, Kansas City Streetcar), port authorities, industrial and agricultural clients, and prime contractors across 36 states plus Canada and the Caribbean. Revenue is generated through three primary streams: managed railroad maintenance services (project-based contracts for ballast distribution, material handling, and right-of-way survey), subscription-style equipment and railcar leasing, and professional services for railcar repair and AAR-compliant maintenance. Pricing is custom and not publicly disclosed, with multi-year contract billing for services and leasing and per-repair billing for railcar work. Distribution is direct through enterprise field sales teams, with a project-based delivery model that can deploy up to 2,200+ employees for large prime or joint venture construction engagements.

The go-to-market is B2B enterprise field sales targeting long-term relationships with railroad operators and transit agencies. Technology differentiation rests on multiple industry-first equipment patents and proprietary software platforms for PTC, GIS, and asset management (RailSentry, Switchboard, SpeedTrax, Video Track Chart, TAM-4). Competitive advantages include the largest North American specialty MOW fleet, embedded Class 1 relationships, AAR/FRA regulatory certifications, and 50+ years of safety and operational record (20+ NRC/NSC safety awards, 140+ quality-in-construction/safety awards in the last decade). The company is privately held and family-led, with Brad Lager serving as Chairman & CEO of the parent organization.

Name

Herzog Railroad Services, Inc.

Legal name

Herzog Railroad Services, Inc.

Website

https://hrsi.com

Company type

Private

Founded year

1969

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Herzog Railroad Services, Inc. (HRSI) is a St. Joseph, Missouri-based railroad maintenance equipment and services provider serving Class 1 railroads, short lines, and transit agencies across North America with proprietary GPS-enabled specialty equipment, a 4,000+ railcar leasing fleet, and in-house AAR-certified railcar repair.

Ownership category

akta.pro rank

Product category

Railroad Maintenance Services

NAICS

Support Activities for Rail Transportation (4882), Commuter Rail Systems (485112)

SIC

Railroad Equipment (3743)

akta.pro primary industry

Track Infrastructure Management & Maintenance (Rails, Sleepers, Ballast, Turnouts) (TLAJADAA)

akta.pro secondary industries

Freight Wagon (Railcar) Maintenance & Repair (TLAKAIAB), Rail Freight Yard Operations (Classification, Hump & Flat Yards) (TLAJAFAB)

Keywords

• Railroad maintenance services
• Maintenance-of-way equipment
• Railcar leasing and repair
• Ballast distribution systems
• Positive train control integration

Headquarters

HQ city

Saint Joseph

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Supply Chain, Marketing or Sales

Revenue model

1. Railroad Maintenance Services: HRSI provides specialty railroad maintenance equipment and services for Class 1 railroads including ballast distribution, material handling, railcar leasing, railcar repairs, and right-of-way survey services. Revenue is generated through project-based contracts and equipment leasing arrangements.
2. Equipment and Railcar Leasing: Herzog offers a diversified fleet of 4,000+ railcars and specialized MOW equipment for short and long-term leases. Fleet includes rapid discharge cars, side dumps, gondolas, flat cars, and GPS/solar ballast cars. Revenue generated through flexible leasing terms tailored to customer needs.
3. Railcar Repair Services: Herzog operates two state-of-the-art railcar repair facilities (St. Joseph, MO and Falls City, NE) providing preventative maintenance, modifications, and repairs in accordance with AAR and FRA guidelines. Revenue generated through service contracts and per-repair billing.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Herzog Railroad Services, Inc. (HRSI) provides specialty railroad maintenance equipment and services for Class 1 railroads, short line railroads, and rail transit systems across North America. Its core offerings include ballast distribution, material handling, railcar leasing, railcar repair, right-of-way survey, and Class 1 engineering solutions, delivered using a proprietary fleet of GPS-enabled and automated maintenance machines designed and built in-house. The division also supports ultrasonic rail testing, PTC systems integration, GIS data services, and turnkey rail construction through its sister divisions.

Product overview

Herzog Railroad Services, Inc. (HRSI) is part of the Herzog family of companies, a North American leader in rail and heavy/highway construction, operations, and maintenance since 1969. HRSI operates as a core division focused on Class 1 railroad right-of-way equipment and maintenance, deploying the industry's most comprehensive fleet of specialty railroad maintenance equipment designed and built in-house. The product portfolio spans proprietary equipment innovations (including GPS Ballast Trains, Automated Conveyor Train℠, Solar Ballast Cars, CarTopper®, Multi-Purpose Machine, Rail Unloading Machine, Automated Tie-Down Car®, Gen II Rail Train, and Clip Car), rail services (ballast distribution, material handling, ROW survey), railcar leasing and repair, and technology solutions. Sister divisions include: Herzog Services, Inc. (ultrasonic rail testing), Herzog Technologies, Inc. (PTC systems integration, GIS software, RailSentry™, Video Track Chart℠, Switchboard℠, SpeedTrax®), and Herzog Transit Services, Inc. (TAM-4© transit asset management). The company operates through seven divisions serving Class 1 railroads, transit agencies, and contractors across North America with 2,800+ employees.

Differentiator

Problem solved

Functional benefit

Brands

• CarTopper: Self-propelled material handling machine that moves onto top of railcars and distributes material along right-of-way as train moves. Can lower under bridges, unloads 200 tons of aggregate per hour.
• Automated Conveyor Train (ACT)
• Rail Unloading Machine (RUM)
• Multi-Purpose Machine (MPM)
• GPS Ballast Trains (PLUS/SMART)
• Automated Tie-Down Car
• Gen II Rail Train
• Clip Car
• Herzog Survey Platform

Products and services

• Ballast Distribution Services Comprehensive ballast distribution for new track construction and maintenance delivered with proprietary in-house equipment (GPS Ballast Trains, Automated Conveyor Train, Solar Ballast Car, Multi-Purpose Machine) achieving 98% uptime dependability for Class 1 and short line railroads.
• Material Handling Services Railroad material handling services for Class 1 railroads, including rail distribution (RUM), tie distribution, OTM material distribution and retrieval, ditching, vegetation control, and PTC infrastructure installation using CarTopper, Multi-Purpose Machine, and Rail Unloading Machine.
• Railcar Leasing Direct leasing of a 4,000+ railcar fleet including rapid discharge cars, side dumps, gondolas, flat cars, and GPS/solar ballast cars on short and long-term arrangements to carriers, shippers, and railcar owners.
• Railcar Repair Services AAR M-1003 certified preventative maintenance, railcar modifications, wheel replacement, and blast and paint services delivered at two facilities (St. Joseph, MO with 22 under-roof spots; Falls City, NE with 46,800 sq. ft.), with weekly status reports to clients.
• ROW Survey Services Right-of-way data collection using LiDAR, GPS, and high-resolution cameras on the Herzog Survey Platform to deliver ballast profiling, clearance analysis, and PTC asset detection for Class 1, transit, and short line railroads.
• Class 1 Engineering Solutions Turnkey equipment solutions for Class 1 railroads within limited work blocks, leveraging more than 35 years of railroad experience and 24/7 maintenance operations.
• Ultrasonic Rail Testing Services Ultrasonic rail flaw detection services using Phased Array Ultrasonic Testing (PAUT), multi-channel ultrasonic hardware, and three vehicle platforms covering Class 1 railroads, transit, and industrial rail customers across the U.S. and Canada.
• Positive Train Control (PTC) Systems Integration Turnkey PTC systems solutions including program management, system design, installation, testing, commissioning, FRA compliance support, and PTC hosting delivered by Herzog Technologies, Inc. (HTI).
• GIS Data Collection and Management Services GIS surveys, feature identification, and PTC SubDiv file generation and testing using the SpeedTrax platform and Video Track Chart software for federal PTC compliance and infrastructure management.
• SpeedTrax GIS Platform Portable GIS data collection platform installable on rail-borne vehicles for PTC and infrastructure management data gathering.
• Video Track Chart (VTC) Software application providing access to up-to-date imagery, track charts, and geographic maps for railroad infrastructure management.
• GIS Software Software applications to process GIS data quickly and accurately for PTC-required railroads and infrastructure management.
• RailSentry Object Detection System Railroad object detection and alert system for critical asset monitoring across rail rights-of-way.
• Switchboard PTC SubDiv Management PTC-focused solution for SubDiv file management with security controls ensuring PTC integrity across integrated railroad systems.
• PTC Hosting Service Centralized PTC hosting solution delivered from Herzog's state-of-the-art data center with 24/7/365 support desk for railroads requiring PTC compliance.
• TAM-4 Transit Asset Management Software Transit Asset Management 4 software that schedules, tracks, captures, and integrates data and generates compliant reports on operations and maintenance activities for rail transit agencies.
• Wayside Signal and Communications Services Design, installation, testing, and commissioning of railroad signal and communications systems including wayside signaling, crossing construction, and fiber optic installation for rail customers.
• Fabrication Services In-house custom steel and weldment fabrication using TRUMPF TruLaser 5040 Fiber, TruLaser Tube 7000 Fiber, TruBend 5320 press brake, and TruArc 1000 welding cobot for rail industry customers and internal equipment production.

Quantifiable outcome

• 98% uptime dependability for ballast distribution equipment
• +3 more outcomes

Named customers9 records

Segments7 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Two partnerships are on record, tiered core.

• Phillips & JordancoreStrategic or Co-development Partner · 1 January 2010Herzog formed Green Group Holdings, LLC in partnership with Phillips & Jordan, an environmental services company specializing in large-scale infrastructure development, environmental permitting, and operations for solid waste landfills, recycling facilities, industrial parks, and transfer stations. Herzog has significant ownership and management interest in the joint venture.
• TransitAmerica Services Inc. (TASI)coreOthersTransitAmerica Services Inc. is a wholly-owned subsidiary of Herzog Transit Services, Inc. (HTSI), formed as a response to agencies requiring workers and operators to be covered under the Railroad Retirement Act and Railroad Unemployment Insurance Act.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Trinity Rail: Major North American railcar leasing, manufacturing, and repair services provider offering a comparable fleet leasing and railcar repair franchise across boxcar, hopper, and tank car types.
• Loram Maintenance of Way, Inc. Closest US-based peer to HRSI: designs and operates specialty rail maintenance equipment (ballast, tie, rail grinding) and provides maintenance-of-way services to Class 1 and short line railroads with similar proprietary equipment manufacturing and contract service model.
• Holland LP: North American rail maintenance services provider (part of CRH/Building Solutions) delivering rail welding, rail services, and right-of-way maintenance to Class 1, short line, and transit customers with comparable field-deployed service crews.
• PNR RailWorks: Provides track construction, maintenance-of-way, and rail signal services across North America. Closely comparable in scope of rail infrastructure services offered to Class 1, short line, and industrial customers.
• Balfour Beatty Rail: UK-listed infrastructure group's rail division offering track maintenance, overhead electrification, and signaling services globally, including a significant North American rail services presence that competes for similar Class 1 and transit MOW contracts.
• Harsco Rail: Division of Harsco Corporation manufacturing specialty track maintenance equipment (rail grinders, tie handlers, track stabilizers) for transit and freight rail operators with a similar in-house equipment development posture.

Broad incumbents

• Progress Rail Services (Caterpillar): Caterpillar's rail division offers locomotives, rail services, and infrastructure maintenance on a broader scale, overlapping with HRSI's MOW services while also serving as a much larger incumbent rail OEM.
• Wabtec Corporation: Global rail OEM and services provider across freight and transit with overlapping maintenance, signaling, and equipment offerings; competes less on specialty MOW equipment than as an adjacent rail technology and services incumbent.
• The Greenbrier Companies: Public railcar manufacturer, lessor, and services provider with a sizeable North American railcar lease fleet and maintenance footprint that competes most directly with HRSI's railcar leasing and repair business lines.

Regional players

• Rio Grande Pacific Corp. Operator of regional/short line railroads that also provides MOW and material handling services through subsidiary RailWorks-style operations; comparable in equipment deployment but with overlapping rail operator ownership.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat6 records

Key risks5 records

Key highlights7 records

Customer concentration

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Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Herzog Railroad Services, Inc.