FORT WORTH, Texas and COL. BOSQUES DE LAS LAMAS, Mexico — The Burlington Northern and Santa Fe Railway Company (BNSF) and Ferrocarril Mexicano (Ferromex) today announced they have partnered and are operating the industry’s first integrated carload rail service that crosses the U.S./Mexico border at El Paso, Texas. Initially, the service is being offered for select forest product commodities, including scrap paper, lumber, plywood and particleboard.
Historically, the majority of all rail traffic into and out of Mexico has crossed the border in south Texas. By crossing the border in El Paso, BNSF and Ferromex offer a more direct route for carload traffic moving between major markets in the Western United States and Mexico.
“This new service provides a shorter route for customers moving freight into and out of Mexico — resulting in better transit times and improved economics for shippers,” said Richard Miller, assistant vice president, BNSF Mexico Business. “This service provides a truck-competitive alternative for customers in Mexico and the Western United States.”
“El Paso represents the natural border crossing for all traffic moving to and from the Western United States, and is an efficient Mexican gateway benefiting customers. Ferromex is committed to developing the El Paso-Ciudad Juarez gateway to provide shippers with an effective alternative to other south Texas gateways,” said Rogelio Velez, Ferrocarril Mexicano vice president, marketing.
Pricing for this service is dock-to-dock and includes all service prices associated with the move, including the rail moves by BNSF and Ferromex, and the car hire within Mexico. Pricing is also presented in U.S. dollars and can be found on BNSF’s web site at http://www.bnsf.com/business/rates/html/rate_index_by_bus_area.html or by calling 1-888-700-3075.
“Our goal is to make this new service price competitive and easy to use,” said Miller. “We’ve made access to prices for the service as easy as possible, and included in the price many of the things customers don’t like to deal with, such as the car hire within Mexico.”
Ferrocarril Mexicano (Ferromex) began operating on February 19th, 1998, after having obtained the concession from the Federal Government. With over 10,500 kilometers of track, Ferromex represents 80 percent of the coverage in the Mexican National Railway System, and serves more than 3,000 customers. Ferromex connects five major urban centers in the country, five key border cities with the United States, four seaports on the Pacific Ocean and two more on the Gulf of Mexico. Since February 1998, Ferromex has invested over $500 million as part of a five-year modernization program.
A subsidiary of Burlington Northern Santa Fe Corporation (NYSE: BNI – news), BNSF operates one of the largest rail networks in North America, with 33,000 route miles of track covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a wide variety of customer transactions. The railway moves more intermodal traffic than any other rail system in the world, is America’s largest grain-hauling railroad, and hauls enough coal to generate more than 10 percent of the electricity produced in the United States.