FRA approves testing of first autonomous freight-rail system

Parallel Systems, the developer of an autonomous battery-electric rail system, will launch its first commercial pilot in April after securing approval from the Federal Railroad Administration, the company announced yesterday.

Parallel will work with Genesee & Wyoming Inc. to begin commercial deployment of autonomous battery-electric rail cars along a 160-mile stretch of two Georgia railroads, company officials said in a press release. The stretch will connect the Port of Savannah to major arterial distribution operations serving the East Coast.

Parallel's aim is to deliver an alternative to short-haul trucking, company officials said.

The company recently closed its Series B funding round of $38 million, led by Anthos Capital, joined by Collaborative Fund, as well as Congruent Ventures, Riot Ventures and others. To date, the company has raised $100 million in funding to advance the commercialization of its freight system. The latest funding round will be used to propel commercialization with U.S. and Australian railroads.

"Federal Railroad Administration approval and closing our Series B funding round are two critical milestones for Parallel Systems," said Matt Soule, founder and CEO. "Together with our strategic partnerships within the rail industry, Parallel Systems is now poised to fully commercialize our battery-electric rail system, starting with the FRA-approved project in Georgia."

The company currently has a backlog of more than 300 autonomous battery-electric vehicles with railroads and expects to launch initial commercial operations by 2026, Parallel officials said.

The Parallel freight system allows for groupings of 10 to 30 vehicles to operate in a platoon without couplings between the vehicles. Company officials say their autonomous battery-electric system will help railroads grow their shorter-route transportation business, as well as reduce shipping costs, pollution and highway congestion.