CEO PERSPECTIVES, RAILWAY AGE APRIL 2025 ISSUE: Two years ago, we created the first single-line railway connecting the United States, Canada and Mexico with what I believe is the most relevant rail network in North America. With our expanded footprint and team of 20,000 world-class railroaders, CPKC has delivered on its promise to bring new service products and customer solutions to the market to fuel growth.
CPKC has done exactly what we said we would do, creating a success story that is just getting started. As the rail industry experiences change, ranging from new political leadership to evolving trade flows to technological advancements, CPKC is positioned to capitalize on these developments. By focusing on key traffic segments, supply chain enhancements, industrial development, sustainability, and safety, we are shaping the future of the rail industry and creating value for all stakeholders.
We are investing in our expanded network. Our most significant recent capital improvement project, put into service earlier this year, is the construction of the second span of the Patrick J. Ottensmeyer International Railway Bridge over the Rio Grande from Laredo, Tex., to Nuevo Laredo, Tamaulipas, Mexico. The bridge more than doubles our capacity to move freight through the U.S.-Mexico border at the largest international trade port of entry in North America and brings new efficiency to CPKC’s secure trade corridor linking the U.S. and its largest trading partner. Additionally, targeted investments in infrastructure improvements across the U.S., Mexico, and Canada are boosting our capacity and further improving operational efficiency in this important trade corridor.
With these investments giving us room to grow, CPKC is creating unique outcomes for our customers by introducing service products that have never been possible before in our industry. In the automotive business, our unique closed-loop service model, paired with significant infrastructure investments such as our automotive compound in Wylie, Tex., position CPKC as a leader in automotive transportation. With this service innovation on our single-line network, we are providing enhanced reliable car supply to improve service and increase the value we offer to our OEM customers.
Additionally, demand for intermodal services, particularly in the domestic market, continues to grow with the expansion of our refrigerated business and the unparalleled performance of our Mexico Midwest Express (MMX) premium intermodal service. MMX provides the fastest and most reliable single-line rail service from Chicago to Mexico in the industry, a truck-competitive option that’s never been available before in our industry.
By collaborating with customers, we are changing entire supply chains. This year, Americold will open its new cold storage facility in Kansas City, co-located at our intermodal facility and become the first location in a series being built as part of a new cold supply chain moving by rail. Future rail-served facilities in Eastern Canada, and in Mexico further reinforce these growth opportunities for produce moving north and proteins moving south in CPKC’s new fleet of temperature-controlled containers.
Our collaborations don’t end there. We have created a new direct Class I interchange in Alabama with the acquisition of 50 miles of the former Meridian & Bigbee Railroad. Through this direct connection with CSX, we are opening new lanes with service connecting Mexico, Texas, and the Southeastern U.S. with streamlined freight movement and reducing transit times.
We are doing all this as we keep safety at the front of everything we do.
Technology and innovation are critical to our future. Recent investments in autonomous car inspections, cold wheel technology, and predictive analytics significantly enhance safety and operational efficiency. By leveraging these advanced technologies, we are driving industry-leading improvements in maintenance and reliability.
By once again achieving the lowest Federal Railroad Administration-reportable train accident frequency ratio, we have demonstrated our commitment to operational excellence. Investments in rail inspection technologies, infrastructure enhancements, and operational best practices contribute to a safer and more resilient rail network.
