September 11, 2026 - Union Pacific Railroad has completed test shipments of Wyoming Powder River Basin coal through the Port of Guaymas in Sonora, Mexico, establishing a new cross-border export route to Asia.

Originating at Peabody’s North Antelope Rochelle Mine, the coal was hauled by UP to the interchange with Ferromex in Nogales, Ariz. From there, shipments traveled to the Port of Guaymas to be loaded onto a fleet of vessels, with the first shipload headed to Vietnam.

The initiative reflects efforts to identify additional export capacity as U.S. West Coast terminals face persistent challenges. Efforts to export Powder River Basin coal through these ports have consistently met opposition from environmentalists, leaving producers with limited options for reaching international buyers. The only other current option is through British Columbia via BNSF Railway.

A Union Pacific coal train grinds its way up Logan Hill in the Powder River Basin of Wyoming in October 2020. The railroad recently opened a cross-border coal export route via Mexico’s Port of Guaymas.

Photo: Bill Stephens

“This effort shows how Union Pacific can connect U.S. production to global markets through a cross-border supply chain,” Kelli Sweet, the railroad’s director of marketing and sales, said in a statement this week. “If market conditions support it, this creates another viable export option for customers.”

“The project required close coordination among government stakeholders, rail partners, and port operators,” UP said. “Union Pacific teams across Network Planning and Operations and Customer Care and Support collaborated extensively to execute the shipments.”

“This was a true team effort on both sides of the border,” said Giovany Danel, UP manager of marketing and sales. “We worked through every detail to deliver a reliable and efficient solution for our customer.”

With multiple trains already completed and a vessel loaded, Union Pacific and its partners are evaluating potential next steps, including the possibility of executing future shipments. Officials said they would continue monitoring market conditions to determine the long-term commercial viability of the cross-border route.