A U.S. coalition of railroad executives and their customers are investing in technology to allow companies to track the real-time location of product shipments via rail, reports Reuters.
The project, called RailPulse, would operate akin to how Amazon customers can track packages from origin to destination.
Railroads need to keep pace with Amazon, which has helped set a standard for transportation companies, said RailPulse founder Mike McClellan. The report adds that the $99 billion industry has been stagnant for over a decade and its customers seek better service that may be improved by technological innovation.
"We want more people to feel more comfortable picking rail—particularly this new generation of transportation managers who are ... used to seeing things in real time," said McClellan.
RailPulse has already signed up three of the top six major U.S. freight railroads: Norfolk Southern, Union Pacific, and Canadian Pacific Kansas City. Additionally, it is working on recruiting 600 “short-line” train operators and various railcar leasing companies.
The company intends to charge users a one-time fee to equip railcars with GPS tracking technology, add additional fees for communications services and software updates, and a monthly subscription fee of $3.50 per car, according to the report.
The project is slated to launch in the third quarter of this year. Full Story (Subscription Required)