Amtrak Expands Freight Business
The deals involve an agreement with Burlington Northern Santa Fe that will enable Amtrak to ship priority packages throughout the Southwest; a fleet expansion to carry more U.S mail; a venture into the refrigerated carload business; and a partnership with a ground courier to provide same-day delivery between Washington, D.C., and New York.
Amtrak will lease 40 Roadrailers — bimodal cars that are attached to the rear of passenger trains — from BNSF. Amtrak said the extra cars will be used to transport packages for United Parcel Service and less-than-truckload companies between Kansas City, Mo., and Albuquerque, N.M.
“It’s not a big deal in terms of the volume being shipped on that route and for that lane, but it is interesting because we’re looking at it as an experiment to see if Amtrak can handle it,” said Robert Godlewski, a UPS spokesman.
We’re going to give it a try and we’ll see if it lives up to its potential,” he said. “If it doesn’t, then we’ll have to think long and hard about trying any other routes with them.”
mtrak estimates this service will net an additional $2.9 million a year.
More Roadrailers also were acquired to haul a greater volume of second-class mail for the U.S. Postal Service. The 89 Roadrailer Mailvan trailers bring Amtrak’s total fleet for its postal operations to 166 and will enable Amtrak to handle mail business on two new routes: between Los Angeles and Oakland, Calif., and between Philadelphia and Springfield, Mass. The postal service is Amtrak’s largest commercial customer, generating $73 million in the last fiscal year. Amtrak hopes these new services will produce $15.2 million more.
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