Union Pacific purchased Southern Pacific Lines, Inc. in 1996. Inc. Industry experts believe that the railroad industry has begun a long-term uptrend in both North America and globally. Privatization of the rail systems in Mexico, Canada, Brazil, and Argentina have opened up many opportunities for US railroads to expand. In 1995, the rail industry completed a program of equipping all 1.2 million freight cars and 22,000 locomotives with electronic identification tags. By tagging all of the cars and locomotives, they can be monitored by trackside readers resulting in fewer instances of misrouted equipment.
Shippers can also benefit by having access to more accurate information on freight arrival times.
Improved signaling systems are improving the utilization of track. Double-tracked mainlines are no longer needed if the improved signaling systems are used. The costs involved in maintaining two lines are eliminated and the materials used from the second line can be recycled. Employment levels for maintenance workers has been cut due to these changes. The railroad industry is definitely in the consolidation mode.