Glickman "Dismayed" At
UPs
Embargo On Mexico ShipmentsWASHINGTON
(AP) Bridling at Union Pacific Railroad's
decision to temporarily suspend rail shipments to Mexico
through its Laredo, Texas gateway, Agriculture Secretary
Dan Glickman is urging federal regulators to step in and
block the action.
The nation's largest railroad, which has been
struggling for months to resolve persistent congestion
problems in Texas and elsewhere, announced last week that
it would stop accepting some new shipments for delivery
into Mexico through Laredo until the gridlock is ended.
Glickman pronounced himself "dismayed"
Thursday by the move and urged the federal Surface
Transportation Board, which has oversight of the nation's
railroads, to block the action.
"While there are undoubtedly occasions when, for
safety or operational reasons, it is necessary to embargo
traffic, no carrier should have the ability to
unilaterally restrict the international trade of the
United States as the (railroad) now threatens to
do," Glickman said in a filing with the STB.
The railroad, which is a unit of Dallas-based Union
Pacific Corp., said it will embargo all new shipments
traveling southward through Laredo, except automobiles
and auto parts, as of Saturday. More than half of the
railroad's traffic to and from Mexico moves through
Laredo.
"The embargo for us was a last resort," said
railroad spokesman Mark Davis, declining to estimate how
long the action is expected to last.
The railroad, which typically has 3000 rail cars going
south through Laredo, now has 5500 cars in the pipeline
some stalled as far north as Oklahoma and Kansas
because of the Mexican congestion.
The main products affected by the embargo are
chemicals, agricultural goods, coal and industrial
products, Davis said.
Union Pacific, which is operating under an emergency
service order imposed by the Surface Transportation
Board, reported to the regulators this week that the
Laredo congestion "has become a major transportation
emergency for UP and its shippers."
The railroad blames the gridlock on a Mexican railroad
that connects with the Laredo gateway.
Glickman questioned Union Pacific's action, saying
"other carriers involved dispute the need for an
embargo."
But, said Davis: "Once you get congestion in the
pipeline, you don't want to keep building on that because
it will spread across your entire system."
Union Pacific's woes began last summer with gridlock
in the Houston area that quickly rippled throughout the
railroad's 36,000-mile network, harming shippers from the
West Coast to the Gulf Coast.
After the railroad proved unable to solve its
intractable problems quickly, and with shippers, the
Texas Railroad Commission and others complaining bitterly
about mounting economic losses, the STB last October put
in place emergency measures designed to lessen the
congestion.
This week, the board is scheduled to hold two days of
hearings on rail competition and access issues.
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