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  • Union Pacific Seeks Extension of FRA Waiver for Cross-Border Freight Car Movements in Texas

Union Pacific Seeks Extension of FRA Waiver for Cross-Border Freight Car Movements in Texas

  • By: Learn Laws®
  • Published: 01/12/2026
  • Updated: 01/12/2026

The Federal Railroad Administration (FRA) announced on January 12, 2026, that it has received a petition from Union Pacific Railroad Company (UPRR) seeking an extension of a waiver from certain federal railroad safety regulations. This waiver would allow UPRR to transport freight cars received in interchange from Kansas City Southern de Mexico across the West Rail International Bridge, located west of Brownsville, Texas, directly to the Olmito yard, approximately 5.65 miles away, without conducting required inspections at the border. The petition, docketed as FRA-2007-28340, builds on a relief initially granted in 2007 and aims to maintain operational practices that UPRR argues enhance safety, security, and efficiency at this key cross-border point. Public comments are invited until February 11, 2026, with the FRA to consider them before deciding on the extension. This development highlights ongoing tensions between regulatory compliance, border security needs, and the practical demands of international rail freight operations.

Background and Regulatory Context

The waiver in question dates back to 2007, when UPRR first sought relief from provisions in 49 CFR part 215, which governs Railroad Freight Car Safety Standards, and 49 CFR 232.205(a)(1), which requires a Class I brake test at the initial terminal inspection point. These regulations are designed to ensure that freight cars and their brake systems are inspected for defects before entering revenue service, thereby minimizing risks of accidents due to mechanical failures. The FRA, part of the Department of Transportation, has authority under 49 CFR part 211 to grant waivers if petitioners demonstrate that the relief does not compromise safety and serves the public interest.

In the original docket, FRA-2007-28340, UPRR argued that performing inspections at the border interchange point posed logistical challenges, including limited space and exposure to security risks. The West Rail International Bridge, opened in 2015 as a dedicated rail crossing, facilitates trade between the U.S. and Mexico but operates in a high-traffic area near the border. UPRR's petition for extension, submitted on October 17, 2025, references these same concerns, noting that the Olmito yard provides a more controlled environment for inspections. According to the Federal Register notice, UPRR stated that operations at Olmito are 'aligned with current Customs/Border Patrol agents and other security-related agencies facilitating necessary inspection and testing of equipment.' This alignment underscores the interplay between transportation safety and national security priorities at border crossings.

Key Players and Their Roles

Union Pacific Railroad, one of the largest freight rail operators in North America, handles significant cross-border traffic through its network connecting the U.S. and Mexico. The company interchanges cars with Kansas City Southern de Mexico, a subsidiary of CPKC (Canadian Pacific Kansas City), at the West Rail Bridge. The FRA, led by Associate Administrator for Railroad Safety John Karl Alexy, is responsible for evaluating the petition. Alexy's signature on the notice emphasizes the agency's role in balancing innovation with safety oversight.

Customs and Border Protection (CBP) agents play an indirect but crucial role, as UPRR's petition highlights how the waiver supports CBP's inspections for contraband and unauthorized entry. UPRR noted in its letter that the relief 'will reduce opportunities for contraband or individuals to unlawfully enter the United States on rail equipment.' This perspective aligns with broader federal efforts to secure borders, as seen in initiatives under the Department of Homeland Security. Rail industry groups, such as the Association of American Railroads, have historically supported similar waivers, arguing they promote efficient trade without sacrificing safety.

Legal Precedents and Political Forces

The FRA's waiver process draws from precedents like the agency's handling of similar requests for border operations. For instance, in docket FRA-2000-7254, the FRA granted waivers for Canadian cross-border movements, citing comparable safety records and the benefits of deferred inspections. These cases establish that waivers can be justified when alternative inspection sites offer equivalent or superior safety outcomes. Politically, this petition occurs amid heightened focus on U.S.-Mexico trade, bolstered by the United States-Mexico-Canada Agreement (USMCA), which encourages seamless rail transport to support economic integration.

However, safety advocates, including organizations like the Brotherhood of Locomotive Engineers and Trainmen, often scrutinize such waivers. They argue that any deviation from standard inspections could increase risks, pointing to incidents like the 2013 Lac-Mégantic derailment in Canada, where brake failures contributed to a disaster. While not directly analogous, such events underscore the potential consequences of relaxed standards. UPRR counters this by emphasizing that the short 5.65-mile distance to Olmito minimizes exposure, and no safety incidents have been reported under the existing waiver.

Implications and Perspectives

In the short term, approving the extension could streamline operations at the West Rail Bridge, reducing congestion that UPRR says creates hazards for railroad personnel. The petition claims this setup provides 'a safer environment for railroad personnel to conduct the required inspections of rail equipment.' From an economic viewpoint, this efficiency supports the growing volume of cross-border freight, which reached over $100 billion in rail trade between the U.S. and Mexico in 2023, according to U.S. Department of Transportation data.

Long-term implications include setting a model for other border crossings, potentially influencing FRA policies nationwide. Proponents view it as a pragmatic adaptation to modern border dynamics, integrating safety with security. Critics, however, worry about precedent-setting erosion of regulations, especially if extended without robust data on safety outcomes. Different perspectives emerge: rail operators prioritize efficiency, regulators focus on compliance, and security agencies emphasize risk reduction. Labor unions may advocate for stricter adherence to protect workers, while trade groups highlight economic benefits.

The FRA's decision will hinge on public comments, which could introduce new data or viewpoints. As noted in the Federal Register, interested parties can submit views via regulations.gov, potentially shaping the outcome.

In summary, UPRR's petition reflects a careful balance of safety, security, and operational needs at a vital border point. Potential next steps include FRA's review of comments after February 11, 2026, followed by a decision that could extend the waiver with conditions or deny it. Ongoing debates may center on integrating advanced technologies, like automated inspection systems, to address inspection delays without waivers. Challenges ahead involve reconciling regulatory rigor with the demands of international trade, ensuring that safety remains paramount amid evolving border security priorities.

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