Subscribe to our free, weekly email newsletter!


Union Pacific formally rolls out new service between Laredo, Texas and Memphis, Tenn.

By Jeff Berman, Group News Editor
January 08, 2014

Class I railroad carrier Union Pacific (UP) said this week it has launched a new intermodal service running between Laredo, Texas and Memphis, Tenn.

UP said this service will focus on growing transportation needs for the automotive manufacturing and intermodal markets, as the automotive industry continues to rebound and shift production to North America.

“Union Pacific developed the service based on market trends indicating that manufacturers increasingly are locating vehicle production and auto parts distribution facilities near where they are most likely to be consumed or purchased,” a company spokesperson said in an interview. “In particular, international automotive companies are producing vehicles in North America (Mexico and the southeastern U.S. - Tennessee, Mississippi, Alabama and South Carolina) to be consumed in North America. Similarly, auto production parts suppliers often co-locate to these same regions.” 

The Memphis-Laredo offering started November 5, 2013, and was the result of a collaborative effort between Union Pacific’s Marketing & Sales, Service Design and Operating departments to develop a service for the evolving automotive marketplace.

This service is designed specifically to serve automotive companies and suppliers, but also will benefit other manufacturing and retail shippers, the spokesperson said, adding that several customers already are utilizing the service, with additional business in the pipeline.

In terms of benefits this service provides for shippers, the UP spokesperson said that the new Laredo-Memphis service offers customers seamless service six days a week with delivery on the third morning.

“This transportation solution offers truck-competitive transit time with the environmental and economic benefits of rail,” said the spokesperson. “While primarily targeting automotive manufacturers, general manufacturing and retail also can take advantage of the intermodal service.”

When asked if UP plans to roll out similar lanes like this in other parts of the country, the spokesperson said that while no additional lanes are planned at this time, Union Pacific is always evaluating customer needs and market trends to develop services and products that create value for its customers.

“The development of this Laredo-Memphis service lane represents Union Pacific’s commitment to creating innovative products and services to meet the evolving needs of our automotive customers,” said Linda Brandl, vice president of Automotive at Union Pacific, in a statement. “With a truck-competitive transit time, this service allows our automotive manufacturing customers to convert truck shipments to rail with minimal impact to their on-hand inventory of auto parts and the customized racks required to ship them.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Article Topics

News · Intermodal · Union Pacific · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA