Around The Railroad

UP Challenges CBP Drug Fines

August 4, 2008 | 09:00 a.m. CDT

For years, Union Pacific has supported Customs and Border Protection (CBP) in its efforts to protect U.S. borders and prevent illegal drugs from entering the country.

UP spends millions of dollars annually supporting the partnership, providing training and personnel, and improving inspection facilities and technology. However, CBP suddenly changed its policies from cooperation to punishment. CBP is now imposing fines and seizing rail equipment for drug smuggling from Mexico that the railroad can't prevent. The fines amount to nearly $40 million.  Union Pacific has initiated legal proceedings against CBP for its actions, which UP believes violate federal law.

"Drug traffic originates on Mexican railroads. We're banned from approaching or inspecting trains except under CBP direction, and only after CBP takes control at the border," said Donna Kush, assistant vice president-Corporate Communications. "Recently, CBP seized two rail cars after UP found drugs CBP missed, yet UP was still penalized."

UP can't send employees into Mexico to locate drugs because of the huge risk involved. Employees have no legal authority, can't carry arms or use K9 teams, and would be forced to turn over drugs to unreliable Mexican authorities. Employees could be arrested for possession of drugs they found and be in the presence of vicious drug gangs.

Foreign railroads control and own the trains coming into the United States from Mexico. UP does not have operating facilities in Mexico, unlike airlines and steamship companies that operate their own terminals and equipment to and from the country.

Union Pacific has a 26 percent stock investment of the Mexican railroad, Ferromex. However, UP is a minority owner and has no control over day-to-day operations. In discussions, UP has made suggestions for additional measures. Ferromex believes the Mexican military is primarily responsible for drug interdiction in Mexico.

"UP cannot accomplish what the U.S. and Mexican governments cannot," said Kush. "We urge CBP to focus our cooperative efforts on finding drugs at the border."