Four rails invest in exchange

By Staff -- Logistics Management, 7/1/2000

Four North American railroads have taken a financial stake in Arzoon.com, an Internet transportation exchange. Canadian Pacific Railway Co., CSX Corp., Norfolk Southern Corp., and Union Pacific Corp. all have invested in the exchange, which is based in San Mateo, Calif.

One of the railroad executives involved says his company's decision to invest in Arzoon was sparked by its desire to offer seamless services. "When fully developed, the new technology will enable our customers to utilize transportation services that span the North American continent.with just the click of a mouse," says Rob Ritchie, president and CEO of Canadian Pacific. "The future of the railroads depends on improving customer service and competing more effectively in the freight marketplace. This technology provides an innovative approach to achieving those goals."

The railroads' involvement in Arzoon may have been prompted by the launch of an exchange last year by rival Burlington Northern Santa Fe. BNSF launched a subsidiary called FreightWise Inc., an online marketplace for transportation services.