Duos Technologies Group Inc (OTCMKTS:DUOT) revealed Wednesday that its operating subsidiary has secured a contract worth $2.3 million from a Class 1 freight rail operator.
In a statement, the Jacksonville, Florida-based technology company which serves the $60 billion North American rail market, said the customer will be adopting the latest version the company’s Railcar Inspection Portal (RIP).
The company said the deal telegraphs an “increasing trend” towards automation in the railroad industry, which has historically relied on manual inspections carried out by people.
Investors responded well, sending shares nearly 8% higher to $0.54 in morning trade.
The company said the award includes a five-year contract for tech support and development of a significant library of artificial intelligence algorithms with the goal of automating certain aspects of the client’s railcar inspection process.
Duos offers proprietary technology to both freight and transit railroads including RIP a 360-degree modular intelligent visualization system. Put simply, the technology takes detailed, real-time, full-picture images of railcars traveling at speeds of up to 120 miles per hour.
Its Linear Panorama Generator “scans” the top, bottom and sides and pieces them together like a puzzle, showing a complete picture of the railcar and producing a very high-definition picture of the entire train from end to end called a “consist.”
The panoramic view can detect oil leaks, damaged parts, open doors and hatches, alerting inspectors of the issue and showing them the location of the problem. Sophisticated algorithms also identity more complex issues that are difficult to detect by simple visualization, including brake-hose geometry and missing bolts from couplings.
The technology can also spot illegal riders on the side of the train, sharing their location on the train along with an alert.
“Our technology substantially improves the efficacy of inspections through high-resolution 360-degree imaging of railcars passing through our proprietary RIP, and it also incorporates a myriad of proprietary critical security features,” said Scott Carns, who is the interim COO of Duos Technologies Inc. “We believe monitoring and maintaining the structural health of railcars and their operating environment is of critical importance to the security, safety and efficiency of railroad operation.”
Full steam ahead
Duos Technologies CEO Gianni Arcaini said the company expects its rail technology business to drive growth as automation projects snowball.
“Our new subsidiary truevue360 is expanding our library of AI-based automated inspection strategies and represents a significant growth opportunity. The combination of our advanced, engineered rail inspection technologies with our artificial intelligence capabilities represents, what we believe is a complete solution for transportation applications,” he added.
Arcaini, a 30-year veteran of the tech space, is the brains behind much of the company’s technology with 14 patents or patents pending.
All Duos' rail solutions utilize the company’s xtd Extreme True Definition technology which captures over 200-megapixel images when the train is moving.
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