CPKC gets 1,000 new reefer containers for US-Mexico services
Canadian Pacific Kansas City (CPKC), the newest rail freight company in the United States, added 1,000 53-foot reefer containers for its Mexico Midwest Express (MMX) intermodal service. With this addition, the company’s fleet is more than doubling.
CPKC was founded in March after Canadian Pacific (CP) and Kansas City Southern (KCS) merged to form one company. Both CP and KCS were Class I Railroads, the group including the largest US rail freight companies. The MMX service, the only intermodal service operating daily between Mexico and the US Midwest, was launched by CPKC in mid-May.
The MMX service connects Chicago with Kansas City, Kansas City (Missouri), Laredo (Texas), and Monterrey (Mexico), before reaching San Luis Potosi. Total transit time from Chicago to San Luis Potosi revolves around 98 hours. The new reefer containers, as CPKC explained, will move fresh and frozen produce, baked goods, candy, and other food products from Mexico to the US Midwest. Concerning southbound trains, the containers will be loaded with beef, chicken, and pork.
Canadian Pacific Kansas City
The CP and KCS merger led to the creation of the first railway network connecting Canada, the US, and Mexico, which will stretch for over 32,000 kilometres. Connecting Canada to Mexico will be advantageous for all countries involved, as CP pointed out. The company said that the Canadian market can count on 128 million consumers in Mexico as well as new market opportunities in Kansas City and Texas. On the other hand, the Mexican market appeals to 38 million consumers in Canada and will benefit from new connections in Louisiana, Chicago, and Detroit. The new network also allows bypassing Chicago, thus creating new capacity on US railways.
The agreement for the merger was first announced in March 2021 and completed the following December, becoming effective after the approval from the US Surface Transportation Board (STB). More specifically, CP is acquiring KCS for a little over 29 billion euros. The new CPKC will still be the smallest Class I Railroad when it comes to revenue but will be able to rely on a much larger network, as CP pointed out. The STB claimed it expects the merger to shift around 64,000 trucks from North America’s roads to the rail.
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