Parallel Systems, a startup founded by former SpaceX engineers, has raised $100 million to develop autonomous battery powered rail vehicles designed to make short distance freight transportation more competitive.

The company believes its technology could help railroads regain part of the surface freight market currently dominated by trucking companies.
The development comes at a time when rising diesel costs and financial difficulties among trucking companies are creating new opportunities for alternative freight transportation.

The company has developed a rail vehicle called Panther that can transport several tons of freight for up to 500 miles without a human operator.

Parallel Systems was founded in 2020 by Matt Soule and other former SpaceX employees who previously worked on rocket avionics systems.

The company believes its technology could make shorter rail routes financially viable, an area where traditional rail operations have struggled to compete with trucks.

Parallel’s vehicles can operate independently or travel together in groups known as platoons. Unlike conventional rail cars, the vehicles do not use couplers, allowing them to separate automatically when they reach a rail yard.

The vehicles are also battery powered, reducing emissions, while their ability to operate on existing rail infrastructure could help reduce road congestion caused by freight trucks. Sensors on each vehicle monitor the track ahead and help identify potential obstacles.

The need for such technology is particularly significant because a large proportion of freight journeys in the United States are less than 500 miles.
Trucking companies currently handle most of these shorter trips, while railroads have increasingly concentrated on longer routes.

Parallel Systems has received approval from the Federal Railroad Administration to operate near the Port of Savannah in Georgia and has been testing its system on about 160 miles of track to demonstrate its safety.

The latest funding round was led by AVP, with participation from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Capital and Collaborative Fund.

The company plans to use the funding to expand manufacturing of its third generation Panther vehicles and accelerate commercial deployment.

Parallel Systems says trucking companies are also showing interest because faster movement of freight could allow them to complete more deliveries each day.

Source: TechCrunch