Union Pacific Loses Military Account

The U.S. military has stopped using Union Pacific Railroad because of delays that have backed up freight and left a shipment of M-1 tanks unguarded.

The nation’s largest railroad, which used to haul more military goods than any other railroad, said it had already stopped handling 90% of its military shipments on its own because of the service problems.

“We knew we could not meet the service requirements,” railroad spokesman John Bromley said. “By the time they cut us off, that was virtually gone anyway.”

Bromley said the military business of the Omaha-based rail had been significant, but he declined to disclose the dollar amount. “It’s a good business to be in and we hope to get back into it,” he said.

Struggling to implement its year-old merger with Southern Pacific Railroad, Union Pacific Corp. has been plagued with train collisions and service problems that have federal regulators closely inspecting its operations. Logjams in Southern California and elsewhere have caused delays in the shipment of goods.

Union Pacific has submitted a plan to the federal Surface Transportation Board that calls for giving some business to other railroads.

The Defense Department’s order will be reviewed in January. It is the first time the military has taken such a step for a company’s entire rail network, officials said.

Bromley said a shipment of M-1 Abrams tanks sat on a rail siding without the required security checks. He said he did not know where or when that occurred.