Cargo securityUnion Pacific not liable for drugs hidden on board trains

On Monday a federal judge ruled against U.S. border officials, stating that they overstepped their bounds in fining Union Pacific millions of dollars for failing to uncover illegal drugs hidden aboard their rail cars by smugglers.

The judge ordered DHS to stop imposing fines on the rail company and to halt seizures of railroad equipment used by drug smugglers.

Union Pacific took issue with U.S. Customs and Border Protection (CBP) for imposing roughly $500 million in fines for failing to stop drug smugglers from using their rail cars. The company argued that the fines were unfair as smugglers had hidden the drugs aboard trains while still in Mexico, outside of U.S. jurisdiction.

In addition the railroad said assigning employees or security guards to protect the trains in Mexico would have been too dangerous and gotten them involved in the country’s bloody drug wars.

Jim Young, the chairman and CEO of Union Pacific, welcomed the ruling but was careful to note that the company would continue to work with federal officials to improve security and prevent smugglers from taking advantage of its railcars.

“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 (U.S. officials) to help mitigate threats to our nation’s security,” Young said.

The latest ruling comes after the company reached an unrelated settlement with CBP over the $500 million in fines. Union Pacific agreed to pay $50 million over five years, which would go towards security improvements including additional security personnel, drug sniffing dogs, and GPS tracking systems.

CBP agents found more than 4,500 pounds of marijuana and 257 pounds of cocaine hidden board Union Pacific trains often in false compartments.

Charles Miller, a spokesman for the Justice Department, said officials were currently reviewing the ruling.