Parallel Systems, which is the world’s first autonomous battery-electric rail system, will launch the first commercial pilot in April after securing approval from the Federal Railroad Administration (FRA) to deploy its railcars along a 160-mile stretch of two Georgia railroads. And the company has also closed its Series B funding round of $38 million, led by Anthos Capital, joined by Collaborative Fund, Congruent Ventures, Riot Ventures, and others. The company has raised about $100 million in funding.
Parallel Systems is a US-based manufacturer and transportation technology innovator whose mission is to deliver a safer, more efficient, and sustainable alternative to short-haul trucking. And the company’s autonomous battery-electric system provides significant benefits, including:
1.) Enables railroads to grow by increasing the role in shorter-route transportation
2.) Makes America’s busiest roadways safer for motorists by decongesting
3.) Reduces shipping costs
4.) Creates high-skilled and high-wage jobs
5.) Reduces pollution
The Parallel freight system enables small groupings of vehicles, typically 10-30 vehicles, to operate in a platoon without couplings between the vehicles. With Parallel’s technology operating system, railroad operations become far more nimble, safe, and cost-competitive.
After FRA approval, Parallel Systems, in partnership with Genesee & Wyoming Railroad (G&W), will soon start the first commercial deployment of Parallel’s autonomous battery-electric railcars. And the 160-mile stretch connects the Port of Savannah to major arterial distribution operations serving the East Coast. Georgia stands to realize significant benefits from the decongestion of local highways and increased freight transportation availability for communities in southern Georgia.
Parallel Systems is also scaling production of its Generation 3 vehicle and accompanying train control systems and autonomy software. And in collaboration with Union Pacific Railroad, the company has tested the new technology’s compatibility with Positive Train Control for its safe use on the nation’s railroad network.
This latest funding round will be used to propel Parallel Systems’ commercialization with strategic railroad partners in the United States and Australia. The company already has a backlog of 300+ autonomous battery-electric vehicles with leading railroads and expects to launch initial commercial operations by 2026.
KEY QUOTES:
“Federal Railroad Administration approval and closing our Series B funding round are two critical milestones for Parallel Systems. Together with our strategic partnerships within the rail industry, Parallel Systems is now poised to fully commercialize our battery-electric rail system, starting with the FRA-approved project in Georgia.”
– Matt Soule, Founder and CEO
