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Tuesday, December 20, 2011

UP not responsible for drugs smuggled on trains

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Union Pacific will not be held liable for drugs hidden in its trains and carried across the border with Mexico nor will the railroad be responsible for paying multi-million dollar fines. U.S. District Judge Joseph Bataillon ruled that U.S. border officials went beyond the authority granted U.S. Customs and Border Protection by Congress and signed an injunction prohibiting the Department of Homeland Security from seizing UP-owned equipment used in drug smuggling while in Mexican jurisdiction.

"We are pleased that the court agrees with our belief that these fines were unlawful. However, this does not impact our long-term relationship," said Jim Young, Union Pacific chairman and chief executive officer. "We have already invested tens of millions of dollars in technology, infrastructure and training to promote safer and more secure rail transportation across the border and we will continue this collaboration with CBP to help mitigate threats to our nation's security."

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