Dive Brief:
- Union Pacific’s new intermodal service between Southern California and Metro Chicago promises a three-day transit time, the railroad announced Friday.
- The train runs daily between City of Industry, California, and the railroad’s Global 2 terminal in Northlake, Illinois as of April 28.
- “We are delivering the service we sold to our customers – and we’re now able to do it faster,” Union Pacific CEO Jim Vena said in a press release. “Our railroad offers 70-mph service, allowing us to compete for business while reducing greenhouse gas emissions up to 75% for our customers.”
Dive Insight:
The railroad’s faster offering is part of its ongoing strategy to capture more over-the-road shipments, said Kenny Rocker, the railroad’s EVP of marketing and sales.
The new service also includes faster freight interchanges with other railroads for trains bound for the Ohio Valley and Northeast destinations, according to Union Pacific.
Union Pacific’s newest offering is the second daily service the railroad operates between Los Angeles and Chicago. In early April the railroad launched a route connecting Fontana, California, to its yard in Northlake, Illinois.
In 2022, Union Pacific signed an operating agreement with trucking company Schneider National as it looks to double the size of its intermodal operation by 2030. During an earnings call last week, Schneider executives identified the railroad’s new service as an encouraging move toward this goal.
“Our fully asset-based positioning with the Union Pacific and the CSX rail partners differentiates us as we take further advantage of how well they are connected to deliver volume growth and operating efficiencies that enhance our long-term intermodal returns,” Mark Rourke, president and CEO of Schneider National, said on the call.
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