(Source: Canadian Pacific Railway press release, March 8, 2022)
CALGARY — Canadian Pacific Railway Limited today announced that, working with Kansas City Southern (“KCS”) on an interline basis, it has successfully launched the first dedicated international intermodal train between Lázaro Cárdenas and the U.S. Midwest. This first Lázaro Cárdenas to Chicago train was born out of the need to avoid excessive delays due to the unprecedented and ongoing supply chain challenges affecting North America’s West Coast.
The first train carrying containers offloaded at Lázaro Cárdenas arrived Tuesday morning at CP’s Bensenville Yard in the Chicago area. CP is pleased to report that total transit time from vessel arrival at Lázaro to train arrival in Chicago was just seven days. CP and KCS cooperated as interline carriers to offer a new intermodal service to meet market demand.
“This Mexico-to-Midwest train is a proof of concept and a sign of things to come if a combined Canadian Pacific Kansas City (“CPKC”) network is approved by the Surface Transportation Board (“STB”),” said Keith Creel, CP President and Chief Executive Officer. “With STB approval, CPKC will work with our customers and invest in new infrastructure and train services to unlock the full potential of the combined network to offer unmatched supply chain alternatives and benefits compared to other rail options through congested ports and a real alternative to highway-clogging trucks. I would envision creating a new Mexico Midwest Express interline service that could deliver all of these benefits.”
If the STB approves the combination, CPKC would make the investments necessary to offer regular Lázaro Cárdenas to Chicago service on a single-line basis and support the tremendous growth potential that would flow from new competitive and reliable rail transportation options for inland shippers. With minimal on dock dwell, a smooth and seamless border crossing, and an expedited rail service, there is the potential to create an end-to-end transit experience that will be second-to-none on the West Coast if the merger is approved.
A CP-KCS combination will enable a host of new train services providing enhanced competitive alternative to existing rail service providers. The single integrated rail system would connect premier ports on the U.S. Gulf, Atlantic and Pacific coasts with key overseas markets.