FOUR RAILROADS CREATE INTERNET-BASED ALLIANCE
Canadian Pacific Railway Co., CSX Corp., Norfolk Southern Corp. and Union Pacific Corp. said Tuesday they have invested in Arzoon, a privately held Internet technology company, to provide one-stop transportation management services for the Class I railroads.
“We have created an open communications platform that utilizes a common language to procure, monitor and manage transportation services using one or more modes of transportation — rail, highway, air and water,” said Farid Dibachi, chief executive officer of Arzoon, based in San Mateo, Calif.
Customers can use Arzoon to send a request for service to their select transportation carriers, and monitor shipments in real time.
“When fully developed, the new technology will enable our customers to utilize transportation services that shamelessly span the North American continent from Canada to Mexico and from one coast to the other with just the click of a mouse,” said Rob Ritchie, president and CEO of Canadian Pacific.
“Alliances among railroads are the key to providing our customers with quality service, including flawless interchange of freight traffic — the goal of every company in the rail industry,” said John Snow, chairman and CEO of CSX. “The purpose of our partnership's investment is to achieve seamless service.”
Two competing Class I railroads not included in the alliance are Burlington Northern Santa Fe and Canadian National. The two railroads announced plans in December to merge, creating the largest rail network in North America. Their merger plans were stalled by a 15-month merger moratorium set by the U.S. Surface Transportation Board in order to draft new rules to govern rail mergers.