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6/24/2008



Rail News: Rail Industry Trends

UP, NS partner to provide automotive co-loading service


Automakers now can share rail capacity to ship finished vehicles more quickly and efficiently. Union Pacific Railroad and Norfolk Southern Railway recently launched an Automotive Interline Co-Loading Service, which allows vehicles from multiple automotive manufacturers to be combined within a single rail car.

By combining small vehicle shipments, automakers can avoid having to wait to fill a rail car themselves, UP and NS said. On April 30, the two Class Is partnered to complete the industry's first automotive interline co-loading shipment. The railroads co-loaded Chrysler minivans and Ford F150s at NS' loading facility in Melvindale, Mich., and unloaded the vehicles 2,241 miles away at UP's Mira Loma, Calif., facility.

"Innovative collaboration ... allows us to be proactive in providing new solutions to serve our customers' changing needs," said Julie Krehbiel, UP vice president and general manager-automotive marketing and sales, in a prepared statement. "This new service significantly enhances efficiency in the vehicle distribution supply chain at the origin and destination."


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