Why No UPS/FEDEX Rail?

Any reason why UPS or FedEx couldn't expand into rail?

I've had the same question form in my head today!

Well, the two companies already have a wide network of truck and airway services. From an airport, the mail can be carried by small trucks to the neighborhoods, since most cities have airports. However, not all cities have good rail service.
Also, buying locomotives and rail cars would take too much money for companies with an already-efficient fleet.

Since the USA has no open rail system UPS or FEDEX can not run their own trains, they can only contract with railroads to have them operate their trains.

I'm fairly sure UPS contracts with the railroads to move some of their shipments. I've seen UPS TOFC shipments running around the Chicago area, and I used to see them on the CN/IC mainline through here.

Cannot recall the numbers, but BNSF has trains that carry a lot of UPS traffic, and they were hot, at least when I was working for the outfit.

UPS Contracts with Both UP and CSX to move UPS Traffic. The Train on CSX is Q109 and Q108 both trains can have eather UP or CSX Power on it both ae vary hot even Amtraks Late Shore... I mean Lake Shore is side lined for the UPS Trains.

[moved to operations from equipment- ov]

We used to have something called Railway Express Agency. They had a built in network of agencies- almost every passenger station in America was a "retail outlet" to ship a package by REA. There were a lot more passenger routes, too.

http://en.wikipedia.org/wiki/Railway_Express_Agency

-otto-

CSX runs UPS on its pig trains, especially Q171, Q172 (might be 173 & 174) and on the southbound empty juice train (Q741). Those trains are all pretty hot.

Yes... but it's not like you can go to any depot, drop off a package, and have it go on the train...

UPS is the single largest railroad customer in the United States.

The closest thing we have now is Amtrak Express Trak. They can move items between stations with baggage cars.

Competitive prices with UPS overnight. I had a coat shipped to me at Albany, it was 22.50, UPS was 27 and I would have had to taxi to the UPS Depot.

My information could be wrong...but I recall shortly after the Conrail split, UPS bought a big chunk of NS stock.

Nothing came of it; and I think UPS has divested.

Reason? I would speculate that UPS made inquiries as to how they could run the railroad as a precision part of their network, and found that, in reality, they could not. Rather than becomr a de facto unit of the government, micromanaged by regulators, they chose to focus on trucks and aircraft.

gprimr1 wrote:The closest thing we have now is Amtrak Express Trak. They can move items between stations with baggage cars.

I believe Amtrak Express traK has been gone since 2005 now, and all cars are stored in California. that all came to halt after shut down of Mail & Express.

DutchRailnut wrote:

gprimr1 wrote:The closest thing we have now is Amtrak Express Trak. They can move items between stations with baggage cars.

I believe Amtrak Express traK has been gone since 2005 now, and all cars are stored in California. that all came to halt after shut down of Mail & Express.

Yes, no longer offered by dedicated cars. I was delayed a couple of times for switching moves for the express cars.

Though it appears to still carry express in the trains with baggage cars, which I believe requires dropoff and pickup by the customer at the baggage claim at stations.

http://www.amtrak.com/servlet/ContentSe ... py&ssid=43

Ken W2KB wrote:

DutchRailnut wrote:

gprimr1 wrote:The closest thing we have now is Amtrak Express Trak. They can move items between stations with baggage cars.

I believe Amtrak Express traK has been gone since 2005 now, and all cars are stored in California. that all came to halt after shut down of Mail & Express.

Yes, no longer offered by dedicated cars. I was delayed a couple of times for switching moves for the express cars.

Though it appears to still carry express in the trains with baggage cars, which I believe requires dropoff and pickup by the customer at the baggage claim at stations.

http://www.amtrak.com/servlet/ContentSe ... py&ssid=43

I thought that some of these Amtrak express cars were sold off with in the last year or two??