Maestrano Group (MNO) said it has been awarded its first US contract with Union Pacific Railroad, the second largest Class 1 Railroad in the United States, ranked by track miles.
The London-listed Company, which operates as an artificial intelligence-based platform for transport corridor analytics, said the contract represents the first of several "Pilot" projects.
Maestrano explained that the projects were engineered to demonstrate both the efficient data capture process and rapid Artificial Intelligence analysis of the resulting digital "point clouds".
Maestrano's specialist rail analytics subsidiary, Cordel Technology Inc (Cordel) entered the North American market back in May 2020, thereby commencing the process of establishing relationships and credibility with railroad companies and engineering service providers.
The US market is segmented into classes by revenue; The seven Class 1 Railroads are the trans-national heavy freight companies that own the majority of the 140,000 miles of track in the US; Class 2 Regional railroads provide freight and passenger services intra-state and Class 3 railroads are typically local lines serving a small number of towns and industries.
Shares in Maestrano Group were trading 5.52% higher this morning at 13.85p.
Maestrano said Cordel, after conducting extensive market feedback, has confirmed that there is ‘a significant market opportunity’ for the subsidiary’s technology in all market segments.
Cordel has engaged with five of the seven Class 1 North American railroads and completed the procurement process with multiple Class 1 Railroads. This means it is now on a list of approved vendors, enabling Maestrano to receive new work orders without significant delays.
"We are proud and excited by the achievements of our team to date, with first revenue now being received and a solid opportunity pipeline now in place for the coming financial year. Above all, we have proven that our technology is both applicable to USA conditions and more than competitive in terms of results, speed and cost,” said Nick Wayne, VP of Cordel USA.
"The USA market represents over 38% of global expenditure on rail asset management. It has been a core focus for Cordel over the past year and we have moved from the proving to the early revenue stage. Whilst this has taken longer than expected, we are now positioned for a significant growth opportunity,” added CEO of Maestrano Group, Nick Smith.Follow News & Updates from Maestrano Group here: