Parallel Systems has raised a $100 million Series C to build its Panther rail car at scale and start commercial service. The Panther is a battery-powered freight car that runs as far as 500 miles without an operator, TechCrunch reported.
The cars have no couplers. They run alone or in platoons that are shorter than a typical train. A platoon that reaches a rail yard can split up without a person uncoupling it. Sensors on each car watch the track ahead for obstacles.
Railroads are the customers. Parallel says a number of major railroads are under contract to move commercial freight with its system. It reported a backlog of more than 300 vehicles with railroads last year.
Parallel is testing the cars on a 160-mile corridor of two Genesee & Wyoming short lines in Georgia, from near Cordele to Pooler, near the Port of Savannah. The Federal Railroad Administration approved the program last year. The tests are in the fourth of seven phases, FreightWaves reported. The FRA has to clear each phase before the next one starts.
“Less than 500 miles is hard for railroads to do competitively,” CEO Matt Soule told TechCrunch. He said the technology lets railroads take some of that freight from trucks. Trucks handle most of the roughly 60% of US freight trips that run under 500 miles. Union Pacific said last month that record diesel prices are moving truck freight to rail, mostly on long hauls.
AVP led the round. Hillspire, Agility Global and Cobalt Capital are new investors. Anthos Capital, Congruent Ventures, Riot Ventures and Collaborative Fund returned. Parallel has now raised more than $200 million. The new funding will pay for Panther production and entry into international markets.
