GSN: Railroad will spend millions to secure supply chain under CBP agreement

by Sabrina I. Pacifici on August 22, 2011

Mark Rockwell: “Union Pacific railroad, the largest rail carrier in the U.S. has agreed to spend $50 million to improve the security of its supply chain between the U.S. and Mexico, and establish a joint security fusion center with U.S. Customs and Border Protection (CBP). The CBP agreement with Omaha, NE-based Union Pacific railroad requires the expenditures to soften $500 million in U.S. Government penalties against it for drugs discovered on its rail cars, said the agency and the railroad on Aug. 19. Union Pacific is the largest the largest transporter of goods by rail to and from the U.S. – Mexico border. The government had filed lawsuits in 2009 against the rail carrier for allegedly failing to prevent the use of its rail cars by smugglers to bring marijuana and cocaine into U.S. In complaints filed in San Diego and Houston, CBP sought more than $37 million in penalties from the company. The government alleged the rail cars were brought across the border at the ports of entry at Calexico, CA, and Brownsville, TX, carrying the illicit cargo.”

Posted in Legal Research

Previous post:

Next post: