CPKC’s single-line service connects the U.S. Midwest and Mexico with truck-like transit

If you’ve ever taken a flight, you know that a direct one is always the easiest, quickest option if available. 

Compare CPKC’s new intermodal service connecting shippers between Mexico and the U.S. Midwest to a direct flight. This new service, offered by Schneider, is the only single railroad connection available, with transit from 5 coasts to 15 inland terminals covering major markets in Canada, the U.S. and Mexico. 

After only a few months of utilizing CPKC’s new cross-border Intermodal service (May – July 2023), actual service is exceeding expectations. Service is faster than CPKC Advertised transit, and equal to or faster than average truck transit.  

According to a recent article in Railway Age magazine, Kansas City Southern (now merged with Canadian Pacific to make CPKC) has invested $1B in their cross-border network from 2013 – present. Why? Retired KCS President and CEO Pat Ottensmeyer said earlier this year that NAFTA (North American Free Trade Agreement) and now USMCA (United States-Mexico-Canada Agreement) have driven exponential growth of manufacturing in Mexico and trade between the two countries. On top of that, the trend to nearshoring/reshoring post-pandemic is driving cross-border freight.

Ottensmeyer said, “In a post-pandemic environment, now is a great time to review what nearshoring could mean for a company’s supply chain. The benefits of USMCA complemented by the impacts of the COVID-19 global pandemic and international trade tensions have created the perfect opportunity for companies to explore the benefits of shifting manufacturing to Mexico to take advantage of the many benefits nearshoring has to offer.” 

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^{This report is developed by leveraging data and analytics from multiple transportation industry resources.}

^{This report focuses on the Mexico Transportation Market. View the full Transportation Market Update here.}

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