Herzog Railroad Services, Inc.

What Herzog Railroad Services, Inc. does

Herzog Railroad Services, Inc. (HRSI) is a St. Joseph, Missouri-based subsidiary of the Herzog family of companies that provides specialty railroad maintenance equipment, ballast distribution, material handling, right-of-way (ROW) surveying, railcar leasing, and railcar repair services to North American railroads, transit agencies, port authorities, industrial clients, and contractors. Founded as a distinct operating entity in 1969 alongside the broader Herzog Contracting Corp., HRSI differentiates through an extensive proprietary equipment fleet — including the CarTopper®, Multi-Purpose Machine®, Automated Conveyor Train™, Rail Unloading Machine, Automated Tie-Down Car®, GPS-enabled ballast trains (PLUS and SMART), Solar Ballast Car, and the LiDAR-based Herzog Survey Platform — designed and built in-house, with multiple industry-first capabilities in GPS-based ballast placement, curved-track unloading, and automated rail clamping.

The company's revenue model combines professional services contracts (equipment-and-operator deployment for Class 1 engineering solutions, ballast distribution, and material handling within limited track-time windows) with recurring railcar leasing revenue (a diversified 4,000+ railcar fleet including gondolas, rapid discharge hoppers, automated ballast cars, and side dumps for short- and long-term lease). Railcar repair services at AAR-certified facilities in St. Joseph, MO and Falls City, NE provide additional recurring revenue. GTM is executed via direct enterprise field sales to railroad procurement and operations, supported by industry association presence in REMSA, AREMA, APTA, ASLRRA, and NRC. Customer concentration centers on U.S. Class 1 railroads (BNSF, Union Pacific, Kansas City Southern), with adjacent exposure to short line railroads, transit systems, ports, and industrial/agricultural clients.

HRSI operates as part of a broader Herzog enterprise (2,800+ employees across all subsidiaries, 36 U.S. states, plus Canadian operations) and benefits from sibling capabilities in Positive Train Control (Herzog Technologies, Inc.), ultrasonic rail testing (Herzog Services, Inc.), passenger rail operations (Herzog Transit Services, Inc.), and energy/disaster response (Herzog Energy, Herzog Solutions). The company is privately held and family-controlled, with Brad Lager serving as Chairman & CEO since 2019 following the passing of Stanley M. Herzog.

Name

Herzog Railroad Services, Inc.

Legal name

Herzog Railroad Services, Inc.

Website

https://herzog.com

Company type

Private

Founded year

1969

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Herzog Railroad Services provides specialty railroad maintenance equipment, ballast distribution, material handling, ROW surveying, railcar leasing (4,000+ cars), and railcar repair to Class 1 railroads, transit agencies, ports, and industrial clients across North America, leveraging a proprietary in-house-built equipment fleet.

Ownership category

akta.pro rank

Product category

Railroad Maintenance Services

NAICS

Support Activities for Rail Transportation (488210), Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance (8113), Construction, Transportation, Mining, and Forestry Machinery and Equipment Rental and Leasing (53241)

SIC

Railroad Equipment (3743), Construction, Mining & Materials Handling Machinery & Equip (3530)

akta.pro primary industry

Freight Wagon (Railcar) Maintenance & Repair (TLAKAIAB)

akta.pro secondary industries

Rail Terminal Cargo Handling Equipment Operations & Maintenance (Cranes, Reach Stackers, RTGs) (TLAJAFAG), Railcar Storage & Staging Yards (TLALAKAF)

Keywords

• Railroad maintenance equipment
• Ballast distribution services
• Railcar leasing
• Railcar repair services
• Material handling solutions

Headquarters

HQ city

Saint Joseph

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

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

Revenue model

1. Railroad Maintenance Equipment Services: HRSI provides specialty railroad maintenance equipment and operators for Class 1 railroad right-of-way maintenance including ballast distribution, material handling, and track construction services. Revenue generated through service contracts with railroads and transit agencies.
2. Railcar Leasing: Diversified fleet of 4,000+ railcars including rapid discharge cars, side dumps, gondolas, flat cars, GPS and solar ballast cars offered for short and long-term leases to carriers, shippers, commodity owners, and railcar owners
3. Railcar Repair Services: State-of-the-art railcar repair facilities in St. Joseph, MO and Falls City, NE providing preventative maintenance, modifications, and repairs in accordance with AAR and FRA guidelines

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

Herzog Railroad Services, Inc. (HRSI) deploys a proprietary fleet of in-house designed and built specialty railroad maintenance equipment—operated by its own skilled workforce—directly to Class 1 railroads, short line railroads, transit systems, port authorities, and industrial customers for right-of-way maintenance, ballast distribution, material handling, rail unloading, and track construction within limited work blocks. The company complements field services with a 4,000+ railcar fleet available for short- and long-term leasing and operates AAR-certified railcar repair facilities in St. Joseph, MO and Falls City, NE providing preventive maintenance, modifications, and repairs compliant with AAR and FRA standards.

Product overview

Herzog Railroad Services, Inc. (HRSI) is a subsidiary of Herzog Contracting Corp. that deploys the most vast and comprehensive fleet of specialty railroad maintenance equipment designed and built in-house. The company's offerings span multiple service categories: Core services include Class 1 Engineering Solutions, Ballast Distribution, Material Handling, ROW Survey, Railcar Leasing, and Railcar Repair Services. These services are powered by an extensive fleet of proprietary specialty equipment including the CarTopper®, Automated Conveyor Train℠ (ACT), Multi-Purpose Machine® (MPM), Rail Unloading Machine (RUM), Automated Tie-Down Car®, GPS Ballast Trains, Solar Ballast Cars, GEN II Rail Train, Self-Loading Rail Train, Clip Car, and Herzog Survey Platform (LiDAR truck). HRSI positions itself as the only company in the industry to provide GPS tie unloading, first to unload ballast in a curve, first and only with automated tie-down car, first and only GPS/IMU system for automated ballast distribution, and first and only mobile hybrid Rail Unloading Machine (RUM).

Differentiator

Problem solved

Functional benefit

Brands

• Herzog Railroad Services of Canada, Ltd. Canadian operations entity for Herzog Railroad Services
• Herzog Services of Canada, Ltd.
• Herzog Technologies of Canada, Ltd.
• TransitAmerica Services Inc. (TASI)

Products and services

• Class 1 Engineering Solutions
• Ballast Distribution Services
• Material Handling Services
• ROW Survey Services
• Railcar Leasing
• Railcar Repair Services
• CarTopper® Material Handling Machine
• Clip Car
• Multi-Purpose Machine® (MPM)
• GPS Ballast Trains (PLUS and SMART)
• Rail Unloading Machine (RUM)
• Automated Tie-Down Car®
• Herzog Survey Platform (LiDAR Truck)
• Gen II Rail Train
• Automated Conveyor Train℠ (ACT)
• Solar Ballast Car
• Self-Loading Rail Train

Quantifiable outcome

• 98% uptime dependability for ballast distribution equipment
• +5 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature9 records

Partnerships

Three partnerships are on record, tiered core.

• Herzog Railroad Services of Canada, Ltd.coreOthersCanadian subsidiary entity extending HRSI's specialty railroad maintenance equipment and services to railroads and transit systems throughout Canada
• Burlington Northern Santa Fe (BNSF) RailwaycoreStrategic or Co-development PartnerLong-term partnership where BNSF has contracted HRSI for specialty equipment including the first Multi-Purpose Machine. HRSI railcar repair facility served by BNSF.
• Union Pacific RailroadcoreStrategic or Co-development PartnerRailcar repair facility in Falls City, NE served by Union Pacific. Long-term equipment service relationship for MOW operations.

Scale indicators9 records

Recent moves7 records

Expansion highlights5 records

Broad incumbents

• Progress Rail Services (Caterpillar): Progress Rail, a Caterpillar subsidiary, offers an integrated portfolio of locomotives, railcar products, MOW equipment, and signaling across the rail value chain. While broader than HRSI's specialty focus, Progress Rail directly competes in MOW equipment and rail services with substantially greater financial backing from its parent.
• Vossloh North America: Vossloh is a global rail infrastructure provider offering rail fastening systems, switches, MOW equipment, and rail services. Comparable to HRSI's ballast distribution and rail infrastructure support, with broader product portfolio and European parent backing.

Direct peers

• Trinity Industries, Inc. Trinity Industries manufactures and leases railcars, highway products, and structural steel, with a large railcar leasing fleet serving North American railroads and shippers. Comparable to HRSI's railcar leasing operations, though Trinity also manufactures the railcars rather than only leasing and servicing them.
• Plasser American Corporation: Plasser American manufactures and services MOW (maintenance-of-way) equipment including tampers, ballast regulators, and track maintenance machines for North American railroads. Directly comparable to HRSI's proprietary specialty equipment portfolio targeting Class 1 MOW applications.
• Harsco Rail (Harsco Corporation division): Harsco Rail is a division of Harsco Corporation providing MOW equipment, track maintenance services, and rail grinding to Class 1 and transit customers globally. Direct peer to HRSI in specialty MOW equipment manufacturing and on-site service delivery.
• Loram Technologies, Inc. Loram is the most direct competitor to HRSI in railroad maintenance equipment and services, offering rail grinding, ballast maintenance, friction management, and track inspection services to Class 1 railroads across North America. Both companies deploy proprietary specialty equipment fleets operated by skilled crews to Class 1 customers under similar contract structures.
• GATX Corporation: GATX is one of the largest railcar leasing companies in North America, with a diversified fleet serving shippers across multiple commodities. Directly comparable to HRSI's 4,000+ railcar leasing business, though GATX operates at substantially larger scale as a publicly-traded railcar lessor.
• Nordco Inc. Nordco manufactures MOW equipment including tie inserters, removers, and rail threaders for Class 1 and transit customers. Directly comparable to HRSI's Clip Car, tie handling, and rail unloading equipment lines targeting the same MOW customer base.
• Balfour Beatty Rail: Balfour Beatty Rail provides rail track construction, maintenance, and electrification services across North America and internationally. Comparable to HRSI in delivering MOW services and rail construction to Class 1 and transit customers, with particular overlap in track maintenance and material handling.

Emerging players

• Stellar Industrial Services: Stellar Industrial Services (formerly Loram subsidiary Stellar Rail) provides specialty rail services including ballast cleaning and rail grinding support. Emerging peer with partial overlap to HRSI's MOW service portfolio, particularly in ballast-related services.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat6 records

Key risks5 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/channel/UC8E8b4vjKc8e3zKzJYJxZ2w
• LinkedInlinkedin.com/company/herzog-contracting-corp-

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries9 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.