AAR: Economic hits continue as El Paso, Eagle Pass remain closed

As of yesterday, U.S. Customs and Border Protection (CBP) has offered no guidance as to when rail operations will be restored at the crossings in El Paso and Eagle Pass, Texas, the Association of American Railroads reported.

Today is the fourth day that rail traffic has stalled between the United States and Mexico via the two crossings, according to the AAR. CBP halted the crossings due to the migrant crisis.

Under typical operations, BNSF Railway Co. and Union Pacific Railroad operate 24 trains across these two crossings per day, according to AAR. Commodities transported include agricultural products, automotive parts, finished vehicles, chemicals and consumer goods to customers on both sides of the border.

The closures mean businesses spanning the continent will see delayed or even canceled shipments, AAR officials said.

"The urgency of reopening these crossings and restoring rail service between the two nations cannot be overstated," AAR President and CEO Ian Jefferies said on Monday.

According to the U.S. Bureau of Transportation Statistics, El Paso and Eagle Pass accounted for $33.95 billion, or 35.8%, of all cross-border rail traffic between November 2022 and October 2023. During that same time, about 7.04 million metric tons of product moved by rail to and from Mexico through those crossings.

UP estimates a $200 million hit to the economy each day their operations at the two crossings remain closed, according to AAR. El Paso and Eagle Pass locations represent 45% of UP’s cross-border business.

UP has had to embargo customers' goods on more than 60 trains, or nearly 4,500 rail cars, with an equivalent of goods being held in Mexico, AAR added. Those figures do not include the impact on BNSF’s operations.

Moreover, migrants are not using the El Paso and Eagle Pass rail crossings to enter the country in significant amounts, AAR officials said.

"Widely circulating video is not from these direct crossings," AAR officials said. "Railroads in partnership with CBP ensure that 100% of trains are screened and any unauthorized individuals are apprehended."

Various rail customer groups have also called on the CBP to immediately restore rail service through the two crossings.