The railroad industry has largely abandoned shorter routes in favor of longer trains operating on fixed schedules, a strategy known as precision railroading that has ceded ground to trucking companies. But with diesel prices at record highs driving at least 16 trucking companies into bankruptcy over recent weeks, Parallel Systems sees an opportunity to reopen that market.
The startup's Panther vehicles are battery-powered, autonomous rail cars that can travel independently or in uncoupled platoons. They can carry several tons of freight up to 500 miles without an operator. Unlike traditional trains, the coupler-free design allows vehicles to split apart in a yard without human intervention. Sensors monitor the rails for obstacles once the Panther is cleared to operate on a section of track.
“Less than 500 miles is hard for railroads to do competitively,” said Matt Soule, co-founder and CEO. “Our technology allows them to take some of that trucking, and it's for the public's benefit.”
Because the vehicles run on existing rail lines, they avoid contributing to road congestion, and the battery power eliminates tailpipe emissions. The company is also drawing interest from drayage companies, which move freight short distances. By moving freight closer to a customer's door via rail, trucking companies can make more deliveries per day rather than sitting in port traffic.
Parallel Systems was founded in 2020 by Soule and co-founders who previously designed rocket avionics at SpaceX. The $100 million Series C will be used to scale manufacturing of its third-generation vehicle and accelerate commercial rollout.