Canada-U.S.-Mexico Intermodal Market Heats Up

Even as the new CPKC combined railway announced another major customer, three railroads announced they have teamed up to create a competing Mexico-U.S.-Canada rail service.

Earlier this month, Canadian Pacific and Kansas City Southern combined to create Canadian Pacific Kansas City Railroad, creating the first single-line railway connecting Canada, the U.S., and Mexico. CPKC is predicting its new intermodal services will shift some 64,000 truck shipments from highway to rail, although not everyone’s on board with that prediction.

It soon announced its first major intermodal customer, Schneider National. The trucking giant, furthering its plans to double its intermodal size by 2030, announced it will offer “truck-competitive” intermodal service on the newly merged Canadian Pacific Kansas City railroad between the upper Midwest and Mexico. 

That was followed by an announcement between CPKC and Knight-Swift Transportation Holdings for Knight-Swift to provide truckload intermodal transportation service on CPKC's new single-line north-south corridor connecting Mexico, the United States and Canada. Knight-Swift's established Mexico customer base will be able to leverage CPKC's broad network of rail lines, terminals, and cross-border efficiency and expertise to improve service reliability and competitiveness, according to the announcement.

Competing Rail and Intermodal Service

Not to be outdone, on April 24, three other rail companies — CN (Canadian National Railway Company), Union Pacific Railroad, and GMXT (GrupoMexico Transportes) — announced Falcon Premium intermodal service, “a best-in-class Mexico-U.S.-Canada service with a seamless rail connection in Chicago, Illinois.”

It will directly connect all CN origin points within Canada and Detroit to GMXT terminals in Mexico. This service will benefit intermodal customers shipping automotive parts, food, FAK (freight all kinds), home appliances, and temperature-controlled products, according to the companies.

The announcement claims that Falcon Premium service “will be the fastest, most reliable intermodal rail service between Canada and Mexico by combining the unique benefits of each partner. The seamless service will leverage GMXT’s best-in-class transit times between Silao, Guanajuato, and Eagle Pass, Texas; Union Pacific’s superior route from Texas to Chicago and CN’s best-in-class service connecting Chicago to all points in Canada through the unique EJ&E Chicago bypass.”

The new service allows the maximization of lading weights between Mexico/Canada for greater efficiency for customers. Falcon Premium intermodal service will also contribute to lower greenhouse gas emissions through reduced rail miles and significant truck-to-rail conversion.

“The Falcon Premium service is tailor-made with the objective of providing new solutions to customers catering to the requirements of nearshoring demands,” said Fernando Lopez, GMXT CEO.