Industry Interview: Rasesh Shah on Leadership, Relationships, and Building a Legacy in Rail

Rasesh (Rash) Shah is the CEO & Chairman of Boundary Rail, where he oversees all aspects of the firm's operations, including fleet acquisition, management, and customer service. A respected leader in the rail industry for more than four decades, Rash previously served as President of the Rail Group at The Andersons, where he founded the company's rail business in 1989 and grew it into one of North America's largest operating lessors with a fleet of more than 25,000 railcars.

Throughout his career, he expanded operations beyond leasing into repair facilities, locomotives, containers, barges, and short-line railroads. In recognition of his contributions to the industry, he received the Norman W. Seip Award for industry excellence in 2018. Beyond rail, Rash has dedicated decades of service to educational, civic, and charitable organizations throughout northwest Ohio and remains an active advocate for engineering education and workforce development.

Q: You came to the U.S. from India and ended up building one of the most respected rail leasing businesses in North America. How did you first get interested in engineering, transportation, and eventually the rail business?

A: I came to the United States from India as a teenager in 1973 to attend the University of Toledo and pursue a degree in Mechanical Engineering. There wasn’t any grand plan or lifelong passion for engineering. After graduating from high school in India, I had to choose between Commerce and Science. I chose Science, which generally led to either medicine or engineering, and ultimately decided engineering was the better fit. At the time, I had no idea that decision would eventually lead me into the rail industry and shape the course of my career.

Q: When you joined The Andersons back in 1978, could you ever have imagined railcar leasing becoming such a major part of both your career and the company’s future? Especially considering where the rail industry was at the time — Conrail was brand new and the Staggers Act was still taking shape.

A: That’s an interesting question. I joined The Andersons in 1978, but the rail business did not become a meaningful and profitable part of the company until 1989. At the time, I knew virtually nothing about railcars, repairs, or leasing. I often joke that my only exposure to railroads before entering the business was sitting at blocked grade crossings and complaining about the train holding up traffic.

Even after we launched the business, none of us imagined it would eventually grow to more than 25,000 railcars, over 25 repair facilities, locomotives, containers, barges, and a short-line railroad operation. We learned every aspect of the business through the proverbial school of hard knocks. With strong support from management and an exceptional team, we adapted, improvised, and grew at every turn. The business was profitable in its first year and remained profitable in 32 of the 33 years it operated before being sold.

Q: When you helped launch The Andersons Rail Group in 1989, what did you see in the market that made you believe the timing was right?

A: The truth is there wasn’t a formal business plan. The Andersons owned covered hopper cars that served our grain and fertilizer businesses. When railcars needed relatively simple repairs, they were removed from service and sent to outside repair shops, often remaining unavailable for weeks.

Our operations teams found that frustrating. We already employed skilled welders and mechanics throughout the company, so the obvious question became: Why not perform these repairs ourselves? Doing so would benefit our operations, our customers, and the railroads we worked with.

That simple realization became the foundation of the Rail Group. I became involved early because many of those skilled tradespeople ultimately reported through my organization. What started as a practical solution to an operational problem evolved into a substantial and highly successful business.

Q: Back in the early days, railcar leasing was very much a relationship business—honestly, most business was back then. Do you think that’s still true today, and are there lessons from those years that still matter?

A: I believe a large part of our success came from being small enough to stay close to our customers. We worked hard to understand their businesses, anticipate their needs, and make their jobs easier. We stayed in front of them, shared our knowledge, and focused on being a trusted partner rather than simply a supplier.

Rail remains a very high-touch business, and I sincerely hope it stays that way.

I’m from the old school and still believe face-to-face interaction is one of the most effective ways to build lasting business relationships.

Q: If a young person came to you today wanting to get into rail supply, leasing, or the broader rail business, what advice would you give them?

A: I would strongly encourage them to explore the industry. I’ve seen countless examples of people who started at entry-level positions and went on to build highly successful careers.

While this may be true in many industries, I believe the rail sector has some of the best people you’ll ever work with. The lines between customers, suppliers, and even competitors are often blurred, yet people routinely support one another and share knowledge to improve the industry as a whole.

I would also point out that, aside from the occasional downturn, the rail industry generally offers a level of stability and long-term opportunity that many other industries cannot match.

Q: You’ve had a front-row seat to the evolution of railcar leasing over the last 35-plus years. What do you think have been the biggest changes in the business since the late ’80s?

A: Without question, information technology and computerization have transformed every aspect of the business. Access to real-time data has dramatically improved decision-making, fleet management, maintenance planning, and customer service.

We’ve also seen significant consolidation among railcar manufacturers, many of whom now compete directly with leasing companies that were once their primary customers. Railroads have become safer and more efficient, and the industry has attracted substantial investment from private equity firms and international financial institutions.

Another positive development has been the increased participation of women and a more diverse workforce across all segments of the industry.

Q: You’ve lived through multiple freight cycles, recessions, booms, downturns—all of it. In your experience, what separates the leasing companies that make it through the tough times from the ones that don’t?

A: The answer is simple, even if executing it is not: outstanding customer service. Companies that consistently put customers first generally have a much better chance of weathering difficult cycles.

Railcars are long-lived assets, and success requires a long-term perspective. Organizations focused solely on short-term gains often find themselves at odds with the realities of the business. Patience, discipline, and customer commitment are critical ingredients for staying power.

Q: Consolidation has touched almost every part of the industry—railroads, leasing companies, manufacturers, repair shops, suppliers. Having seen so much of it firsthand, what do you think the industry gained from all the M&A activity, and what may have been lost along the way?

A: There has certainly been a tremendous amount of consolidation, and it’s difficult to summarize its effects in a simple answer. Some mergers and acquisitions have been executed extremely well and created value, while others have been less successful.

The reality is that consolidation is a natural part of a capitalist economy. It has always existed, continues today, and will likely remain a defining characteristic of the industry in the future.

Q: What excites you most about the rail industry today, and what concerns you the most?

A: Given the size of our country and the strength of the rail network we’ve built, rail transportation will continue to play a vital role in American commerce. Despite economic cycles, I believe the industry will continue to provide attractive long-term returns for those involved in it.

My primary concern is the future of coal traffic. While coal has experienced a resurgence, it remains one of the largest contributors to rail traffic volumes. As that traffic eventually normalizes or declines, the industry will need to identify new sources of growth to replace those volumes.

Q: Over the years, you expanded beyond leasing into repair shops, locomotives, containers, and short-line railroads. Was diversification always part of the strategy, or did that evolve over time?

A: It evolved over time rather than being part of a master plan. As we learned more about the industry, we pursued opportunities that complemented our core business and expanded our capabilities.

While railcar leasing and repair ultimately remained our primary focus, the diversification efforts provided valuable experience and created exciting opportunities for our team to learn and grow.

Q: How much has the railcar manufacturing side of the business changed during your career—whether in technology, competition, customer expectations, or just the economics of building railcars?

A: The manufacturing sector has experienced significant consolidation over the years. Looking at a railcar from the outside, you may not immediately notice dramatic differences, but the advances have been substantial.

Metallurgy, coatings, safety appliances, manufacturing processes, and engineering standards have all improved significantly, resulting in safer, more reliable, and longer-lasting equipment.

Q: When you look back over your career, what developments in maintenance, repair, compliance, or fleet management had the biggest impact on the business operationally?

A: One of the most impactful developments has been wheel impact detection technology and the use of KIPS readings. These systems have significantly changed maintenance practices and have led to far more wheel replacements than were common earlier in my career.

The ability to identify problems before they become serious failures has improved both safety and operational efficiency.

Q: I’d like to go back to something we touched on earlier—relationships. You built long-term relationships across this industry over several decades. In a business that can sometimes become very transactional, how important are trust and reputation over the long haul?

A: Every relationship begins with a transaction, but it only becomes a lasting relationship when trust is established and maintained. That requires conducting business with the highest level of integrity. Most people would agree that integrity is essential, but the real test comes when problems arise.

How you handle difficult situations will either strengthen the trust you’ve built or gradually erode it. Over the long term, reputation becomes one of the most valuable assets a person or company can possess.

Q: When you think back over both the strong markets and the difficult cycles, were there leadership principles or personal values that consistently guided your decisions?

A: One principle I always believed in was that no customer and no order was ever too small. Every customer deserved attention and respect.

I also learned that when you’re building a business without deep pockets, a well-known name, or the perfect geography, success depends on having a team that believes in the vision and is committed to achieving it together. Great teams can overcome many disadvantages.

Q: After retiring from The Andersons, most people would probably have slowed down a bit. Instead, you stayed involved with Boundary Rail. What kept you engaged and interested in continuing on in the industry?

A: After more than 30 years in railcar leasing, it was difficult to simply walk away. I had built strong relationships throughout the industry, accumulated valuable experience, and always wondered whether I could build a company of my own and create something that could become a family business.

At my age, I didn’t have particularly high expectations when we started the venture. However, with the help of my two sons and an outstanding team, we’ve built a strong platform. My hope is that the business will continue to grow and thrive long after I’m gone.

Once rail gets into your bloodstream, it’s very difficult to get it out.

Q: You’ve also spent a lot of time supporting educational, civic, and charitable organizations over the years. Why has giving back always been important to you?

A: I arrived in this country more than 53 years ago with very little in my pocket. The opportunities available here allowed me to live the American Dream, and for that I remain deeply grateful.

Giving back to my adopted country has always felt like a natural responsibility and an easy decision. I hope to continue supporting organizations and individuals who simply need a helping hand at the right moment in their lives.

Q: Looking back now, what accomplishment are you most proud of that people outside the rail industry probably wouldn’t fully appreciate?

A: More than any business achievement, I’m proud of having overcome the challenges that come with arriving in a new country with little money, limited connections, and heavily accented English.

The United States has historically been a place where underdogs are given an opportunity to succeed. My story is proof that with education, hard work, perseverance, and integrity, remarkable things are possible.

If you had told that young immigrant arriving in 1973 that one day he would help build a major rail business and be interviewed about his career, he never would have believed it.

We are grateful to Rash Shah for offering his time and thoughtful perspectives on the challenges and opportunities shaping our industry.