Railroad protests $400 million in fines for smuggling drugs

Railroad companies are protesting nearly $400 million in fines for illegal drugs smuggled aboard its trains.

In recent years stepped up border security measures have resulted in the x-raying of every train that enters the United States. This has led to a sharp increase in the discovery of illegal drugs like marijuana, cocaine, and other contraband items that criminals have stashed aboard trains.

Under U.S. law, all shipping companies are subject to fines of $500 per ounce of marijuana and $1,000 per ounce of heroin or cocaine if Customs and Border Protection agents find drugs hidden in their cargo.

With the implementation of x-ray machines, railroad giant Union Pacific has seen its annual fines increase from $37.5 million three years ago to more than $388 million.

Union Pacific argues that they are being punished for the actions of drug smugglers which they cannot control.

According to Bob Grimaila, the vice president of Union Pacific, each year the railroad company spends $3.6 million on its own police officers as well as $72.5 million to support federal efforts to secure the border.

“Our actions should be applauded, not punished,” Grimaila said.

Union Pacific police officials are currently working with Mexican law enforcement agents to trace illicit drug shipments back to their source. In March with the aid of Union Pacific intelligence, the Mexican Army was able to seize 1,350 tons of marijuana in two train cars headed for Texas.

Yet despite the company’s efforts, the U.S. Justice Department says that Union Pacific is ultimately responsible for controlling the trains in Mexico as it owns 26 percent of the Mexican railroad company Ferromex.

Union Pacific maintains that it cannot possibly “send unarmed personnel into Mexico to battle Mexican drug cartels that maliciously murder and wage a war against the Mexican military.”

Railroad companies could be catching a break as the government has signaled that it has softened its stance. For instance, the government recently signed a partial settlement with the Union Pacific to release ten seized rail cars in exchange for $40,000. There was no admission of wrongdoing and the company agreed to find and remove hidden compartments in the train cars.

The debate will likely continue for some time as smugglers find it too lucrative to not target the 8,000 trains entering and exiting the United States each year at eight border crossings. It is estimated that cartels make $25 billion selling drugs in the United States each year, but border officials say they now have the capability to screen 100 percent of all rail traffic entering the United States.