Updates to add Union Pacific statement
The U.S. Customs and Border Protection (CBP) on Friday said that rail operations had resumed at two key border crossings in Eagle Pass and El Paso in Texas, after five days of suspension that affected major trade routes and impacted railroad operators.
Operations restarted at the international railway crossing bridges in the two cities at 1400 ET.
The CBP had shut operations at the two locations so as to redirect personnel to assist the U.S. Border Patrol with taking migrants crossing over the border in railcars into custody.
“CBP will continue to prioritize our border security mission as necessary in response to this evolving situation,” the agency said in Friday’s statement.
Dozens of major agricultural groups on Wednesday penned a letter urging the government to reopen the railways crossings, citing a hit to the U.S. supply chain and negative effects on the economy. Meanwhile, major railroad operators Union Pacific (UNP) and Berkshire Hathaway’s (BRK.A) (BRK.B) BNSF Railway also noted an impact.
Union Pacific (UNP) had estimated that the overall economic impact of the border closures was more than $200M each day it dragged on
“Union Pacific (UNP) was relieved the border crossings at Eagle Pass and El Paso, Texas, reopened Friday. These crossings are critical gateways for international commerce, and the closures had real-world impacts for families, businesses, and our customers on both sides of the border,” a company spokesperson told Seeking Alpha in an emailed statement.
“We will restore normal operations as quickly as possible as we work through the five-day backlog of shipments held to cross the border,” UNP added.
The Association of American Railroads (AAR), a major organization with members including railroad operators in the U.S., Canada and Mexico along with Amtrak, praised the reopening of the border crossings.
“The Biden Administration made the right decision to protect our supply chain and keep goods moving between the U.S. and Mexico,” Ian Jefferies, AAR president and CEO, said in a statement.
“In the face of the unprecedented humanitarian crisis, CBP has been working under exceptionally difficult circumstances, but these ill-advised closures were a blunt force tool that did nothing to bolster law enforcement capacity,” Jefferies added.
The crossings in Eagle Pass and El Paso are vital for the transportation of essential items ranging from oil and energy products to automobiles and electronics. According to statistics from the Bureau of Transportation, the two routes accounted for nearly $34B, or about 36%, of all cross-border rail traffic from November 2022 to October 2023.