UP-BNSF Alameda Belt Line Selected for LA-Long Beach Port Rail

A Major Shift in West Coast Port Rail Operations

The rail industry is watching closely as Alameda Belt Line, jointly owned by Union Pacific and BNSF, has been selected to negotiate for a lucrative three-year contract to provide switching and dispatching services at the Port of Los Angeles and Port of Long Beach. This development represents a potential reshuffling of one of the nation's most critical port rail operations—a function that has been managed by Pacific Harbor Line since 1998. For supply chain professionals managing containerized cargo flows through Southern California, this procurement decision carries real implications for costs, reliability, and transit times.

The ports initiated a competitive RFP process in May 2025, signaling their openness to new operators and alternative service models. While ABL was listed as a potential candidate from the outset, its selection moves the company into active contract negotiations—a significant step toward displacing the incumbent operator. Currently, Pacific Harbor Line handles roughly 40,000 railcars annually (excluding intermodal traffic) across 19 route miles and 96 track miles, employing 190 people and operating 25 locomotives. The operator also pays the ports nearly $129,000 annually for use of the critical 35-acre Berth 200 railyard. These operational metrics underscore the scale and importance of this contract.

Why ABL's Unique Model Matters

What makes this procurement decision noteworthy is ABL's structural difference from traditional port rail operators. Unlike Pacific Harbor Line, ABL operates no locomotives—instead, it provides dispatching and coordination services on the Alameda Corridor, the vital infrastructure connecting the twin ports to the national rail network. This model leverages the joint ownership advantage: both Union Pacific and BNSF bring Class I railroad expertise, allowing ABL to optimize rail network coordination and switching efficiency without the capital burden of owning and maintaining a full locomotive fleet.

This approach could translate into tangible benefits for shippers. Improved dispatch coordination between UP and BNSF could reduce dwell times, accelerate rail throughput, and lower per-container switching costs. Alternatively, the transition period itself could introduce operational friction—new systems, staffing changes, and process learning curves might temporarily disrupt the smooth flow of cargo. Supply chain managers should prepare contingency plans for potential service variability during the first 90 days of operations if ABL is ultimately awarded the contract.

Strategic Implications and Next Steps

The contract must clear approval by the Board of Harbor Commissioners, meaning the selection is not yet final. Both the Port of Los Angeles and Port of Long Beach must negotiate separate agreements with ABL, each tailored to individual port requirements and operational constraints. This dual-negotiation structure adds complexity but also creates an opportunity for ports to customize service terms based on their specific needs.

For supply chain teams relying on LA-Long Beach port access—whether for automotive imports, retail goods, electronics, or other containerized cargo—this development warrants close monitoring. Changes in rail switching rates, service reliability, or transit times through the ports will ripple downstream to warehousing schedules, inventory policies, and ultimately, customer delivery commitments. Companies should maintain communication with their freight forwarders, drayage providers, and port representatives to understand the timeline for any operational transition and to model potential cost or service impacts.

The broader narrative here is instructive: even established port operations are subject to competitive pressure and procurement review. ABL's selection signals that the ports are willing to experiment with alternative service models if they promise better efficiency or cost performance. Whether this particular transition delivers those benefits will become clear over the next 12–18 months. Until then, supply chain professionals should view this as a carefully managed change with both upside potential and transition risk.

Source: FreightWaves