(The following story by Joe Ruff appeared on the Omaha World-Herald website on July 26, 2010.)
OMAHA, Neb. Federal fines levied against Union Pacific grew by $101 million in July as more illegal drugs were found on trains coming from Mexico. Fines now total $162.5 million, despite protests from the nations largest railroad that it cannot control railcars as they cross the border.
In a filing with the Securities and Exchange Commission, Union Pacific said federal officials on July 19 added penalties for drug discoveries in California from May 14, 2008, to June 4, 2010.
The government also said the railroad would receive additional, unspecified penalties for other drug discoveries, Union Pacific officials said.
The battle over drugs on trains has been going on for several years, with Union Pacific filing a lawsuit in July 2008 against the Homeland Security Department in Omahas U.S. District Court. Union Pacific said it had failed to reach a settlement with the government over nearly $38 million in fines levied between 2001 and 2006.
The lawsuit is pending, and fines have mounted. The railroad argues that Mexican railroads deliver their railcars directly to U.S. border officials and Union Pacific receives them only after the government has inspected them.
The federal government maintains that Union Pacific should more aggressively combat the problem, such as working more closely with its business partner, the Mexican railroad Ferrocarril Mexicano, inspecting railcars in Mexico or hiring an outside security company.
