The majority of railcars are private cars owned by the railcar leasing companies that
are leased to the rail freight operators and shippers. Railcar leasing companies enter a
lease contract with the lessees (shippers and freight operators), which can be for a
duration of 2-5 years or even for 20 years. The contract is made under a given lease
rate, which provides the lessors with the expected amount of returns over the duration.