Key facts
- Parallel Systems raised $100 million in Series C funding.
- The startup's autonomous rail vehicles are designed for freight transport.
- The vehicles are battery-powered and can travel up to 500 miles without an operator.
- The company was founded by former SpaceX engineers.
- Parallel Systems received approval from the Federal Railroad Administration to operate near the Port of Savannah, Georgia.
Parallel Systems, a startup founded by former SpaceX engineers, has secured $100 million in Series C funding to advance its autonomous, battery-powered rail vehicles for freight transport. The company aims to revitalize short-haul rail routes, which have become less competitive for railroads compared to trucking.
The startup's Panther vehicles are designed to move freight up to 500 miles without an operator, offering a potential solution as trucking companies face increasing bankruptcies due to high diesel prices. "Less than 500 miles is hard for railroads to do competitively," said Matt Soule, co-founder and CEO of Parallel Systems. "Our technology allows them to take some of that trucking, and it’s for the public’s benefit."
Parallel Systems received approval from the Federal Railroad Administration a year and a half ago and has been testing its system on 160 miles of track near the Port of Savannah, Georgia. The company's approach differs from the prevailing 'precision railroading' strategy, which focuses on longer trains to spread costs. Parallel's vehicles can operate independently or in platoons and split up without human intervention, potentially increasing delivery efficiency for drayage companies.