Canadian Pacific Kansas City (CPKC), in one of its first moves since officially combining Canadian Pacific and Kansas City Southern on April 14, has announced a new multi-year agreement with Schneider National Inc. to provide new single-line intermodal transportation service on CPKC’s north-south corridor linking the United States and Mexico.
CPKC on April 21 said Schneider will transition its Mexico-U.S. traffic to CPKC starting in mid-May and serve as an “anchor” domestic intermodal customer on CPKC’s north-south intermodal service between Chicago and all major destinations in Mexico.
Schneider’s growing customer base will be able to leverage CPKC’s broad network of rail lines and terminals, according to the Class I railroad. “These services, supported by Schneider’s drayage capabilities and expertise in the U.S. and Mexico, will create service reliability in lanes that until now lacked single-line, truck-competitive intermodal options,” the railroad reported.
“The CPKC combination creates compelling new transportation solutions for Schneider’s current and future customers looking for more reliability and increased capacity in their supply chains,” CPKC President and CEO Keith Creel said. “Our team is eager to deliver truck-competitive services to Schneider on our newly created, cross-border single-line network from Mexico into the United States. For many years, we’ve built trust with customers through our industry-leading east-west services across Canada and the northern U.S. We look forward to expanding that success to the vital north-south trade corridor on the newly-combined CPKC network.”
“It is a natural fit to pair CPKC’s rail operating excellence and Schneider’s superior dray execution to provide unparalleled service,” Schneider President and CEO Mark Rourke said. “Our 30-plus years operating in Mexico and broad portfolio of services will bring an intermodal service offering into and out of Mexico that is comparable to the speed and efficiency of shipping over the road, but with the added benefit of sustainability.”
Schneider in January completed the transition of its western U.S. rail operations to Union Pacific (UP). The trucking, intermodal and logistics services provider signed a long-term agreement with UP in early 2022.