El Paso Texas USA - The temporary shutdown of the U.S.-Mexico railroad border crossings at Eagle Pass and El Paso, Texas, has thrown a kink into supply chains that demand reliability.
 
Eagle Pass and El Paso are the number 2 and 3 rail gateways by volume, respectively.
 
Union Pacific says the closure has prompted it to place an embargo on Mexico-bound freight moving on 60 trains and being processed in more than 50 rail yards.
 
"This traffic amounts to over 4,500 cars spanning 265,000 feet and weighing in excess of 420,000 tons being held north of the border. There is an equivalent amount of northbound traffic currently held south of the border," railroad spokesman Mike Jaixen says.
 
UP and trackage-rights tenant BNSF Railway interchanged an average of 16 trains per day with Ferromex via Eagle Pass in October, according to Bureau of Transportation Statistics data.
 
It's a key route for Mexican beer, auto parts, finished vehicles, and appliances, among other commodities.
 
The same three railroads exchanged an average of 7.3 trains per day at El Paso in October, according to BTS data.
 
U.S. Customs and Border Protection announced on Sunday night that it would temporarily close the Eagle Pass and El Paso rail gateways at 20:00 today as the agency shifts personnel to handle another surge in migrants crossing the border.
 
The top rail gateway, the Canadian Pacific Kansas City Laredo-Nuevo Laredo crossing, remains open.
 
It handled 24 trains per day in October for CPKC and UP, according to BTS data.
 
"The urgency of reopening these crossings and restoring rail service between the two nations cannot be overstated. There are not separate U.S. and Mexican rail networks, there is only one interconnected North American rail network. Every day the border remains closed unleashes a cascade of delay across operations on both sides of the border, impacting customers and ultimately consumers," Association of American Railroads CEO Ian Jefferies said in a statement today.
 
Railroads have worked closely with customs officials on both sides of the border to create an efficient and effective screening process, Jefferies says.
 
"As CBP continues to address the exceptionally challenging humanitarian crisis, railroads urge CBP to also safeguard the nation's supply chain from further disruption."
 
UP says the border crossings, which handle more than a third of the railroad's U.S.-Mexico freight, should be reopened as quickly as possible.
 
"Union Pacific is in close communication with multiple government agencies and our customers, insisting the Eagle Pass and El Paso border crossings be reopened for the businesses and consumers relying on goods at this critical time for the economy. The company understands the humanitarian crisis at hand, but migrants are not crossing the border on trains, and it is imperative the borders are opened as soon as possible," Jaixen says.
 
The Eagle Pass rail gateway was shut for four days in September after Ferromex suspended operations for safety reasons due to a surge in migrants riding its freights to the border.
 
Service resumed a day after a delegation of UP officials, led by CEO Jim Vena and President Beth Whited, met with officials in Eagle Pass.
 
CPKC, BNSF, UP, and CN, and their respective intermodal customers, have been aiming to grow rail's relatively small share of cross-border traffic.
 
While intermodal traffic linking Mexico with the U.S. and Canada has been growing, truck traffic has been growing even faster.
 
The joint CN-UP-Ferromex Falcon Premium intermodal service uses the Eagle Pass gateway.
 
BNSF and J.B. Hunt announced last month that they will shift their cross-border intermodal traffic to the Eagle Pass gateway effective 1 Jan 2024.
 
Independent analyst Anthony B. Hatch says the shutdowns are a concern at a time when near-shoring is boosting manufacturing investment in Mexico as well as cross-border trade in North America.
 
And much like recent issues south of the border, including periodic protests blocking main lines, imposition of passenger service, and cancellation of contracted projects, the bridge closures should be considered a cost of doing business in Mexico, Hatch says.
 
The closure of the rail border crossings comes just days after a new shortline sought regulatory approval to build a rail and highway bridge over the Rio Grande at Eagle Pass.
 
Green Eagle Railroad, a subsidiary of Puerto Verde Holdings, aims to build a new 19.12 mile secure cross-border corridor that includes 1.335 miles of double track between UP's Clark's Park Yard and a new double-track span over the Rio Grande, followed by a 17.79 mile single-track line to Ferromex's Rio Escondido Yard in Piedras Negras.
 
The corridor would be fenced, include customs processing facilities, and have no grade crossings because it would bypass the urban centers of Eagle Pass and Piedras Negras.
 
Green Eagle hopes to divert UP and BNSF traffic off the current bridge to its proposed route.
 
Author unknown.