Railroads rolling out high-tech logistics

OMAHA, Nebraska (Reuters) – The screens on the wall and the computers that back them up can locate and guide hundreds of trains anywhere on Union Pacific Corp.’s (UNP.N: Quote, Profile, Research) 34,000 miles of track in the United States, but to John Cazahous this complex matrix is not enough.

“We need to take what we do to a new level beyond the end of the tracks,” said Cazahous, network operations head at the Harriman Dispatching Center here in Union Pacific’s hometown.

“If a ship is loading up in China, we should know what’s being loaded, where it’s headed and when it’s going to enter our network,” Cazahous said.

Facing unprecedented demand coupled with customer complaints over delays, U.S. railroads are embracing new strategies and technologies to handle rising volumes on their networks.

The pace of U.S. imports has seen double-digit growth over the past three years as more goods originate in rapidly developing economies such as China and India.

Combined with high fuel prices and an acute shortage of drivers hurting the trucking industry, a rising tide of cargo is hitting the rails, leaving railroads scrambling to match demand.

Reuters