Parallel Systems, a Los Angeles startup building what it calls the world's first autonomous freight train system, has raised approximately $100 million to date as it pushes toward commercializing self-driving electric rail vehicles.
Autonomous rail cars, not locomotives
Founded in 2020 by former SpaceX engineer Matt Soule, Parallel designs battery-electric rail cars that each carry their own motors, sensors, braking systems, cameras, lidar and onboard computers. The vehicles can travel independently or in coordinated groups controlled entirely by software, without traditional locomotives or onboard engineers. "You can think of this as the Waymo of light rail," Soule told KTLA, a comparison underscored by recent robotaxi developments.
Testing under way in Georgia
The company is conducting commercial testing across roughly 160 miles of track between the Port of Savannah and Cordele, Georgia, in partnership with railroad operator Genesee & Wyoming and under oversight from the Federal Railroad Administration. Human operators remain involved through remote operations centers and can intervene if required, with the long-term aim of shifting workers into supervisory roles.
Targeting short-haul freight
Soule says the US freight transportation market generates about $900 billion annually, with trucking accounting for roughly $800 billion and rail just $80 billion. Parallel argues that autonomous electric rail could compete on shorter routes, especially drayage moves linking ports, rail yards and distribution centers, that have traditionally been uneconomical for rail. The pitch sits alongside other autonomy bets such as Reliable Robotics in autonomous aircraft.
A growing logistics automation race
The company plans to begin manufacturing its third-generation autonomous rail vehicles next year. It enters a logistics sector increasingly focused on automation, from autonomous trucks to robotic warehouses and AI-powered supply chains, including recent funding such as Smart Robotics' warehouse expansion. "We're rapidly moving towards full commercialization," Soule said. "We're the only ones doing anything like this that has Federal Railroad Administration approval."
Built-in redundancy and safety
Each vehicle currently uses six cameras alongside lidar sensors to monitor its surroundings and support autonomous operation, and carries multiple redundant braking systems that Parallel says can stop faster than conventional locomotives. By moving shipping containers inland from congested ports to distribution centers, the company argues, autonomous rail could ease bottlenecks and let truck drivers focus on shorter last-mile deliveries, while taking advantage of rail's inherent energy efficiency over road freight.
Reporting based on coverage from Robotics & Automation News, KTLA and Benzinga.