In response to rising cargo theft events, railroad operator Union Pacific is fighting back on two fronts, including technology and security investments as well as tight coordination with the shippers who supply the precious goods it carries.
In response, Omaha, Nebraska-based Union Pacific says it has invested more than $30 million since January of 2023 on security projects like 24/7 camera units and strengthened fences. The company has also launched drones with thermal imaging capabilities that can fly surveillance missions to identify would-be trespassers who get too close to its mainline tracks, rail yards and infrastructure.
But on top of those physical defense, the company says it has also redoubled efforts to work with shippers. Recommended security strategies include strengthening the locks on containers against bolt-cutters, and attaching GPS sensors to cargo to identify real-time threats both on and off the railroad.
Union Pacific also offers a list of “Shipping Do’s and Don’ts” to shippers before they send their shipments:
cargo owners should avoid placing identifying information on the outside of containers, such as company names or logos.
prior to loading, make sure the locking devices on containers are properly operating.
restrict information on high-value shipments to key personnel only.
when possible, load high value products toward the nose of the container.
theft-deterrent or barrier seals are recommended over plastic or tin seals, as they provide the highest level of protection from unauthorized entry into intermodal containers or trailers.
Sierra Northern Railway (SNR), a short-line freight railroad company operating in California, has acquired RailPower LLC, a provider of hybrid drive locomotives.
According to SNR, RailPower has produced approximately 190 locomotives, including 55 GG20B hybrid switchers, 116 RP20BD genset locomotives, and several other models that are all known for their fuel efficiency and low emissions, serving industrial switching, short-line railroads, and port operations across North America.
Following the acquisition, SNR plans to build its hydrogen locomotives on RailPower's proven platform, initially targeting the 260 locomotives used by shortline railroads in California. This initiative combines the strengths of both companies to offer cutting-edge, zero-emission rail solutions tailored to industry needs, SNR said.
The deal also underscores the company's commitment to advancing sustainable transportation technologies while supporting California's ambitious climate goals, according to SNR.
Terms of the deal were not disclosed.
Sierra Northern Railway is the freight division of privately owned, Sierra Railroad Company. It operates approximately 75 miles of track in Northern California and 30 miles in Southern California through a number of the state’s core industrial areas, providing movement of bulk commodities of grain, petroleum products, forest products, and minerals. It also interchanges with both BNSF Railway and Union Pacific Railroad.
Trucking industry groups such as the National Motor Freight Traffic Association (NMFTA) are cheering California regulators’ move this week to end the campaign to require truck fleets to use zero-emission vehicles in the state.
That effort was intended to curb greenhouse gas (GHG) emissions by mandating a transition from diesel-powered trucks to battery electric versions staged over a period of years. The plan included a provision that all trucks sold in California had to be zero emission by 2036 and that all trucks operated in the state had to be zero emission by 2042.
However, California on Monday withdrew its petition for the Clean Air Act (CAA) waiver from the Environmental Protection Agency (EPA) for California Air Resources Board's (CARB) Advanced Clean Fleets (ACF) regulation. According to NMFTA, the stated reasoning behind the decision to withdraw the waiver petition was because California officials assumed that incoming President Trump would deny the waiver once he took office.
Following that move, the NMFTA says it will now also push to overturn additional “unattainable regulations,” including the GHG Phase 3 rule and CARB’s Advanced Clean Truck (ACT) rule. “We anticipate a flurry of activity at the EPA once the new Administration takes office. This may include Executive Orders regarding the enforcement of GHG Phase 3 and the rescission of the ACT waiver. We will keep you updated,” NMFTA said in a release.
But the group also said it would continue to seek GHG reductions through different strategies. “We do not view this as a pause on the industry’s efforts to manufacture and operate cleaner trucks. To the contrary, we view this as an opportunity for manufacturers and fleets to focus on alternative fuel options, such as renewable natural gas and biodiesel,” NMFTA said.
The Waterloo, Iowa-based company serves 20 grain elevators, two ethanol plants, two mineral processing facilities, and also handles other commodities such as fertilizer, farm machinery, food, chemicals, and lumber. IANR has 110 employees, 450 grain hopper rail cars, and 30 locomotives.
The approval decision by the U.S. Surface Transportation Board (STB) clears the way for CN to combine IANR’s route miles with CN’s nearly 20,000-mile rail network as early as February 13. A combined CN-IANR will offer single-line service to better connect grain, fertilizer, renewable fuels, and industrial markets to CN’s North American network, CN said.
In additional—though unrelated—rail union action on Tuesday, members of Local 101R at CN rival Canadian Pacific Kansas City Railway (CPKC) voted in favor of strike action if their contract negotiations don’t succeed by January 29,according to Unifor, Canada's largest private sector union. Unifor represents more than 1,200 members at Local 101R who work in mechanical shops, inspecting and maintaining CPKC’s fleet of locomotives and freight cars, and ensuring the railway’s equipment is safe and operational.
For example, millions of residents and workers in the Tampa region have now left their homes and jobs, heeding increasingly dire evacuation warnings from state officials. They’re fleeing the estimated 10 to 20 feet of storm surge that is forecast to swamp the area, due to Hurricane Milton’s status as the strongest hurricane in the Gulf since Rita in 2005, the fifth-strongest Atlantic hurricane based on pressure, and the sixth-strongest Atlantic hurricane based on its peak winds, according to market data provider Industrial Info Resources.
Between that mass migration and the storm’s effect on buildings and infrastructure, supply chain impacts could hit the energy logistics and agriculture sectors particularly hard, according to a report from Everstream Analytics.
The Tampa Bay metro area is the most vulnerable area, with the potential for storm surge to halt port operations, roads, rails, air travel, and business operations – possibly for an extended period of time. In contrast to those “severe to potentially catastrophic” effects, key supply chain hubs outside of the core zone of impact—including the Miami metro area along with Jacksonville, FL and Savannah, GA—could also be impacted but to a more moderate level, such as slowdowns in port operations and air cargo, Everstream Analytics’ Chief Meteorologist Jon Davis said in a report.
Although it was recently downgraded from a Category 5 to Category 4 storm, Milton is anticipated to have major disruptions for transportation, in large part because it will strike an “already fragile supply chain environment” that is still reeling from the fury of Hurricane Helene less than two weeks ago and the ILA port strike that ended just five days ago and crippled ports along the East and Gulf Coasts, a report from Project44 said.
The storm will also affect supply chain operations at sea, since approximately 74 container vessels are located near the storm and may experience delays as they await safe entry into major ports. Vessels already at the ports may face delays departing as they wait for storm conditions to clear, Project44 said.
On land, Florida will likely also face impacts in the Last Mile delivery industry as roads become difficult to navigate and workers evacuate for safety.
Likewise, freight rail networks are also shifting engines, cars, and shipments out of the path of the storm as the industry continues “adapting to a world shaped by climate change,” the Association of American Railroads (AAR) said. Before floods arrive, railroads may relocate locomotives, elevate track infrastructure, and remove sensitive electronic equipment such as sensors, signals and switches. However, forceful water can move a bridge from its support beams or destabilize it by unearthing the supporting soil, so in certain conditions, railroads may park rail cars full of heavy materials — like rocks and ballast — on a bridge before a flood to weigh it down, AAR said.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.