Union Pacific opens new intermodal terminal to alleviate California congestion

Union Pacific to build new intermodal terminal

Union Pacific has announced plans to open a new intermodal terminal in Southern California’s import distribution region in a bid to alleviate supply chain congestion.

In a statement, Union Pacific said the Inland Empire Intermodal Terminal will open in the second quarter of 2021 and provide customers with expanded access to Chicago and other key markets.

Kenny Rocker, Executive Vice President – Marketing and Sales, Union Pacific, said the company is excited to expand its intermodal presence and reduce truck traffic on California’s highways, as well as cut drayage costs and compete effectively for domestic freight.

“Inland Empire Intermodal Terminal demonstrates our commitment to intermodal and the strength of Union Pacific’s franchise to grow quickly and strategically using our existing footprint,” Rocker said.

Union Pacific will start by establishing a ‘pop-up’ terminal at its West Colton rail yard. Domestic intermodal service will launch between Southern California and Chicago, with expected future service to Dallas and southeast markets.

The US supply chain has experienced considerable congestion in recent months as exports from China resumed following the easing of lockdown measures.

This has caused considerable chaos at some of the US’ major gateways, such as the ports of Los Angeles, Long Beach and Oakland, and in the hinterland areas.

In January 2021, the Port of Los Angeles launched the Truck Turn-Time and Dual-Transaction Incentive Programs, a new initiative to help truck cargo traffic travel more efficiently

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