As Union Pacific CEO Jim Vena makes the rounds in Washington, including a visit to the Oval Office, to lobby for support of UP’s acquisition of Norfolk Southern, the intended merger partners continue their media blitz with announcement of a new domestic intermodal service they say will “increase supply chain options for customers between Louisville and key Western and Southern markets.”
Described as an “intermodal gateway” with a scheduled mid-October launch (prior to their merger application’s STB filing), the bidirectional service will originate and terminate in the Louisville market, interchanging between NS and UP at the latter’s new Kansas City Intermodal Terminal (KCIT). Railcars will be routed to and from Los Angeles and Lathrop, Calif.; Seattle, Wash.; Portland, Ore.; Salt Lake City, Utah; and Houston, Tex. It will provide automotive, consumer goods, food and beverage, healthcare and manufacturing customers “truck-competitive transit times and expanded market reach.”
At its Louisville terminal, which NS said has been “historically focused on international intermodal,” the railroad is “modifying its terminal footprint to expand parking and track capacity, enabling service tailored to the domestic market’s growing needs. Norfolk Southern continues to modernize its intermodal franchise through strategic investments in terminal infrastructure, advanced technologies, and customer-focused tools and processes.” NS noted that it operates “the most extensive intermodal network in the eastern U.S., with 54 terminals and connections to every major container port on the Atlantic Coast, as well as major ports along the Gulf Coast and Great Lakes.”
UP said KCIT “provides a critical interchange point, connecting domestic and international shipments of grains, consumer goods, refrigerated products and auto parts in the growing Midwest region to major markets across the U.S.,” adding that recent changes to its network operations allow domestic containers to move 25% faster, saving up to 25 hours of transit time to and from Southern California to KCIT. Union Pacific has invested $1.4 billion in its intermodal products, opening four new terminals and modernizing 12 others since 2021 to proactively support market demand and compete with trucks.”
“Our customers want easier, more reliable freight solutions that they can depend on, and our robust service delivers that,” said Kenny Rocker, Executive Vice President – Marketing and Sales at Union Pacific. “Enhancements to the newly expanded KCIT and Norfolk Southern investments in Louisville allow us to compete with trucks, removing thousands from the nation’s congested highways.”
“Our enhancements in the Louisville market reflect how intently we listen to our customers and translate their feedback into thoughtful planning and strategic infrastructure investments,” said Ed Elkins, Chief Commercial Officer at Norfolk Southern. “This is a growth area for our customers, so we are stepping up with service to help them reach untapped markets with a more reliable, sustainable alternative to trucking.”
