UP initiates Texas-Tennessee intermodal service

Union Pacific Railroad yesterday announced it recently launched a new intermodal service between Laredo, Texas, and Memphis, Tenn., to support growing transportation needs for the automotive manufacturing and intermodal marketplaces.

The third-morning service is designed to connect manufacturers in Mexico with retail storefronts and distribution centers in the southeastern U.S. The service combines the industry's fastest intermodal service with container programs that serve all major U.S. and Canadian markets, providing customers with "unmatched service and capacity," UP officials said in a press release.

As the automotive industry continues to rebound and shift production to North America, manufacturers increasingly are locating vehicle production and auto parts distribution facilities near consumer markets, they said.

"The development of this Laredo-Memphis service lane represents Union Pacific's commitment to creating innovative products and services to meet the evolving needs of our automotive customers," said Linda Brandl, UP's vice president of automotive. "With a truck-competitive transit time, this service allows our automotive manufacturing customers to convert truck shipments to rail with minimal impact to their on-hand inventory of auto parts and the customized racks required to ship them."

UP is the only railroad serving all six Mexico gateways: Laredo, Eagle Pass, El Paso and Brownsville, Texas; Calexico, Calif.; and Nogales, Ariz., according to the Class I.