Following Federal Railroad Administration (FRA) approval in April and launch of Phase 1 in June, Parallel Systems, in partnership with Genesee & Wyoming (G&W), has transitioned to Phase 2 of its first commercial pilot to deploy its railcars along a 160-mile stretch of two Georgia short lines.
Phase 1 testing was performed on a two-mile section of track on the Heart of Georgia Railroad. The Parallel vehicle was operated for a total of 90 miles, “passing all safety milestones,” the company said. Tests were also performed for speed, automatic compliance with track warrant limits, slow order bulletins, concurrent warrant limits and Form A slow order bulletins. In addition, the system’s communications links and monitors “were verified to ensure proper connectivity and safety.”
“With this important milestone behind us, we have now launched Phase 2 of the test program over a 30-mile section of track,” Parallel Systems said. “The test region includes 43 grade crossings that will all be protected with flaggers. During this phase, we will evaluate system performance across different terrains, vegetation, and weather conditions. Our specific test activities include speed and position accuracy, stopping distance, audible warnings for grade crossings, and activation of grade crossing warning devices.”
“On our Heart of Georgia Railroad (HOG) near Glenwood, G.a, we moved forward with the official kick off of our pilot test with Parallel Systems,” G&W stated in a June 4 LinkedIn post. ”If these self-propelled rail vehicles prove safe and effective, we see potential to reinvigorate rail traffic on some of our more rural lanes in Georgia that are today dominated by truck. Thank you to the Federal Railroad Administration for your rigorous review of our pilot application, your continued commitment to this project, and for being on site with us today.”
Parallel Systems closed its Series B funding round of $38 million, led by Anthos Capital, joined by Collaborative Fund, as well as Congruent Ventures, Riot Ventures, and others. As of April 21, the company had raised approximately $100 million in funding.
Parallel Systems is a U.S.-based manufacturer and transportation technology innovator whose mission, the company says, “is to deliver a safer, more efficient and sustainable alternative to short-haul trucking.” The company’s autonomous battery-electric system delivers significant benefits, including:
- “Enabling railroads to grow by increasing their role in shorter-route transportation.
- “Making America’s busiest roadways safer for motorists by decongesting.
- “Reducing the costs of shipping.
- “Creating high-skilled, high-wage jobs.
- “Reducing pollution.”
“Federal Railroad Administration approval and closing our Series B funding round are two critical milestones for Parallel Systems,” said Founder and CEO Matt Soule. “Together with our strategic partnerships within the rail industry, Parallel Systems is now poised to fully commercialize our battery-electric rail system, starting with the FRA-approved project in Georgia.”
The Parallel freight system, the company says, allows for small groupings of vehicles, typically 10-30 vehicles, to operate in a platoon without couplings between the vehicles. “Railroad operations become far more nimble, safe, and cost competitive with Parallel’s technology operating system,” the company said.
The latest funding round will be used to propel commercialization of Parallel Systems with strategic railroad partners in the U.S. and Australia. The company already has a backlog of more than 300 autonomous battery-electric vehicles with leading railroads and expects to launch initial commercial operations by 2026.
Parallel Systems is scaling production of its Generation 3 vehicle and accompanying train control systems and autonomy software. In collaboration with Union Pacific, the company has tested the new technology’s compatibility with Positive Train Control (PTC) for its safe use on the nation’s railroad network.
Parallel Systems on June 23 held a virtual roundtable with industry leaders to discuss the technology. The panelists were: Michael Miller, CEO, G&W; Mason George, President, National Accounts, IMC Companies; Erez Agmoni, Co-Founder and General Partner, Interwoven Ventures; Matt Soule, Founder and CEO, Parallel Systems; and D’Andrae Larry, Head of Intermodal, Uber Freight. Wall Street Transportation Analyst Tony Hatch served as moderator.
Summed up Miller at the event: “This doesn’t change the whole supply chain; it actually just makes the supply chain better. It leverages the benefits of the technology to places where there’s the most friction, and when you eliminate that friction, every participant in the supply chain actually wins. So we’re still going to run two-mile long intermodal trains from L.A. to Chicago. We’re still going to run intermodal trains from Savannah to Memphis, but we don’t run intermodal trains from Savannah to Macon, Ga., and this creates a platform where you can do that. And I think everybody just has to step back and not look at this as a threat, but really look at it through the lens of what does this actually mean for the business?”
Watch the Virtual Roundtable Below:
Further Reading:
- FRA Reviews GC, HOG Petition to Pilot Parallel Systems Technology
- Watch: Parallel Systems Tests Railcar ‘Platooning’ in California
- Watch: Parallel Systems Debuts 2nd-Gen Autonomous Battery-Electric Freight Car
- GC, HOG File Petition with FRA to Pilot Parallel Systems Technology
- Parallel Systems Wins $4.4MM DOE Grant
