Union Pacific and Norfolk Southern today launched a new domestic intermodal service, the latest salvo in a growing interline competition among the Class I railroads.
The service will utilize UP’s (NYSE: UNP) network to connect customers throughout the west and south based out of the Louisville intermodal facilities of NS (NYSE: NSC).
Set to launch in mid-October, the joint service will offer truck-competitive transit times across a range of sectors, from automotive, consumer goods, food and beverage, and healthcare and manufacturing, the companies said in a release.
The bi-directional service will originate and terminate in the Louisville market, interchanging between NS and UP in Kansas City, site of UP’s new Kansas City Intermodal Terminal (KCIT). Destinations include Los Angeles, Lathrop, Calif., Seattle, Portland, Oregon, Salt Lake City, and Houston.
“This is another example of Union Pacific and Norfolk Southern developing innovative interline service products, just as each has with other short line and Class I rail partners in the past, to support the growth of the American economy,” the release stated.
“Other products include moving freight from Los Angeles to Charlotte, North Carolina, and Jacksonville, Fla.”
Jacksonville is home to CSX (NASDAQ: CSX), which recently announced interline agreements with BNSF and CN (NYSE: CNI). Those agreements followed the announcement in July by UP that it had agreed to acquire NS, a deal which if approved would create the first transcontinental railroad. CSX and its partners have touted the benefits of interline agreements without the complications a merger creates.
“Our customers want easier, more reliable freight solutions that they can depend on, and our robust service delivers that,” said Kenny Rocker, UP’s executive vice president of marketing and sales, in the release. “Enhancements to the newly expanded Kansas City Intermodal Terminal and Norfolk Southern investments in Louisville allow us to compete with trucks, removing thousands from the nation’s congested highways.”
Union Pacific in the release said recent changes to its network operations enable domestic containers to move 25%
faster, saving up to 25 hours of transit time to and from Southern California to KCIT.
The Omaha-based company has spent $1.4 billion upgrading intermodal, opening four new terminals and modernizing 12 others since 2021.
Norfolk Southern said it is modifying its international-focused hub in Louisville to expand parking and track capacity, to accommodate the domestic services.
“Our enhancements in the Louisville market reflect how intently we listen to our customers and translate their feedback into thoughtful planning and strategic infrastructure investments,” said Ed
Elkins, NS chief commercial officer. “This is a growth area for our customers, so we are stepping up with service to help them reach untapped markets with a more reliable, sustainable alternative to trucking.”
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