UP to customers: Urge Congress to help reopen US-Mexico rail crossings
Union Pacific wants customers to urge Congress to pressure U.S. border officials to provide a timeline for when freight rail operations might resume at U.S.-Mexico border crossings at El Paso and Eagle Pass, Texas.
U.S. Customs and Border Protection announced Sunday that effective at 9 a.m. EST Monday, cross-border freight rail operations at three bridges connecting Texas and Mexico would be suspended in response to increased migrant smuggling operations in the region. El Paso has two railroad bridges, one each for BNSF Railway and Union Pacific, while Eagle Pass has one rail bridge that serves both railroads.
In a Tuesday customer notification, Class I railroad Union Pacific (NYSE: UNP) said it has no idea when the suspension will be lifted. It asked customers to reach out to their congressional representatives for help.
“At this time, the Department of Homeland Security does not have an estimated time of reopening. These locations represent 45% of cross-border shipments on Union Pacific and include goods critical to the U.S. economy,” UP said, adding that each day that the border is closed, it causes UP to place embargoes on more than 60 trains or nearly 4,500 rail cars. An equivalent number is being held in Mexico, according to the railway.
“The longer this closure is in effect, the more difficult it will be for cross-border trade to resume. We estimate that the overall economic impact of the border closure is more than $200 million each day,” UP said. “We encourage you to contact your elected officials to share your concerns regarding the CBP Agency closure of train traffic and request a timeline for reopening. If you have any relationships with Congressional offices or Executive Branch Agencies, please reach out to them as well.”
As UP asked customers to lobby government officials, more trade groups have joined calls asking CBP to lift its suspension.
Joni Casey, president and CEO of the Intermodal Association of North America (IANA), which represents over 1,000 intermodal freight transportation providers and suppliers, said in a Tuesday release that “while acknowledging the ongoing border issues, it is imperative that the flow of freight remains unencumbered throughout these challenges. The reopening of these border crossings is vital to reinstating the essential flow of trade between the U.S. and Mexico.”
IANA also said it supported statements from the Association of American Railroads on Monday calling for an immediate reopening of both rail crossings.
The National Grain and Feed Association and the North America Export Grain Association said in a joint statement Monday that CBP should reopen the rail crossings immediately as “the North American market and grain trade supply chain are deeply intertwined. The closure of these two crossings is impacting the flow of grain and oilseeds for both human and livestock feed to one of the United States’ most important export markets and trading partners.”
The groups also pointed to data from the U.S. Department of Agriculture that shows rail represents 64% of grain and oilseed exports to Mexico.
“We are deeply concerned by the developing situation and request that CBP work with us, the railroads and other federal partners to develop a common sense and expedient solution that reopens this critical mode of agricultural transportation for the U.S. and North American markets,” the two groups said.
CBP previously closed the Eagle Pass gateway in September because of a surge in migrants attempting to cross the border in South Texas.
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