U.S. Customs and Border Protection to mitigate penalties against Union Pacific, now requires rail company to invest US$50M toward improving Mexico-U.S. supply chain security

WASHINGTON , August 19, 2011 (press release) – U.S. Customs and Border Protection (CBP) today announced its decision to mitigate penalties against Union Pacific—requiring the company to spend $50 million on supply chain security to directly enhance the Mexico and United States rail supply chain.

“The facilitation of trade and security of the international supply chain is vital to both the health of our economy and protecting the country,” said U.S. Customs and Border Protection Commissioner, Alan D. Bersin. “It is in the best interest of all stakeholders that all appropriate steps are taken to secure the U.S. border against the smuggling of contraband and to ensure supply chain security now rather than years from now.”

“We are pleased that we have reached a resolution that allows Union Pacific to expand our long-standing relationship with CBP, in which Union Pacific has already invested tens of millions of dollars in technology, infrastructure, training, and workforce resources to promote safer and more secure rail transportation across the border,” said Jim Young, Union Pacific chairman and chief executive officer. “CBP and Union Pacific teams along the border have worked exceptionally well together for many years, and this formal agreement solidifies our commitment to enhance that relationship and involve others who should be part of this critical work.”

The Mitigation Decision defines the steps that Union Pacific will take to infuse $50 million to further secure our border, including investing in security enhancements at critical junctures of the Mexico and United States supply chain, and partnering with CBP to form a Rail Fusion Center to identify high-risk shipments. The Mitigation Decision also provides that CBP will mitigate penalties assessed against Union Pacific if the railroad fulfills its obligations under the Decision. In recent years these penalties have grown to be significant as illegal controlled substances were discovered on trains originating in Mexico and arriving at U.S. -Mexican border crossings.

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U.S. Customs and Border Protection is the unified border agency within the U.S. Department of Homeland Security charged with the management, control and protection of U.S. borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the United States while enforcing hundreds of U.S. laws.


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