Schneider, CSX, and Canadian Pacific Kansas City (CPKC) in December will offer a new intermodal service “providing continuous rail service between points in Mexico and Texas and points in the Southeastern United States.”
The move, Schneider reported Nov. 11, follows the Surface Transportation Board’s approval last month of the Class I railroads’ respective acquisitions of rail lines operated by Genesee & Wyoming’s Meridian & Bigbee Railroad, L.L.C. (MNBR), resulting in the creation of a direct CPKC-CSX interchange connection in Alabama.
CPKC is to acquire and operate MNBR’s 50.4-mile Western Line between Meridian, Miss., and Myrtlewood, Ala., while CSX is to acquire and operate the MNBR rail line that runs 93.7 miles between Burkville and Myrtlewood, Ala. (Eastern Line). MNBR will continue to provide local service to customers between Meridian and Myrtlewood. CPKC and CSX sought to acquire these segments to create a direct interchange between them in Myrtlewood, eliminating the need for MNBR to serve as an intermediary carrier, and to establish a freight corridor linking Mexico, Texas, and the U.S. Southeast.
Now, Schneider, CSX and CPKC have joined forces to launch a “first-of-its-kind service” that will provide a competitive advantage to shippers, who have traditionally relied on over-the-road transport in the Southeast, according to Schneider, a multimodal provider of transportation, intermodal, and logistics services and a customer of both CPKC and CSX. This new service will connect growing markets in Mexico and Texas with Florida and Georgia, Schneider said (see map, top). Unlike truck transportation on this Southeast-Mexico cross-border route, it pointed out, “intermodal service with CPKC provides a seamless, efficient border crossing, eliminating potential delays and exposure to freight loss.”
“This represents a major leap forward in our industry combining the best-in-class service of two renowned railroads, and it will transform the intermodal landscape,” Schneider Executive Vice President and Group President of Transportation and Logistics Jim Filter said. “Our customers can now enjoy unparalleled efficiency and reliability in their supply chains. It will be especially useful for shippers looking to diversify their transportation solutions and support and fortify nearshoring strategies.”
“By leveraging the strengths of our combined networks, we are able to provide customers with unparalleled efficiency, reliability and security in their supply chains,” CSX Executive Vice President and Chief Commercial Officer Kevin Boone said. “This service strengthens our commitment to delivering sustainable, innovative transportation solutions that support the evolving needs of our customers.”
“This new interchange we are establishing with CSX is going to provide new competitive services and solutions to customers like Schneider, reaching additional rapidly growing markets,” CPKC Executive Vice President and Chief Marketing Officer John Brooks said. “By providing more efficient options and routes for Schneider’s current and future customers, we are bringing new capacity to supply chains and taking trucks off the road. Our team is excited to create this truck-competitive service with Schneider and to expand on our shared success.”
Schneider shared the following highlights of the new service:
- “Industry-leading service: CSX and CPKC are both excellent service providers with long track records of providing solutions with truck-like transits.
- “Enhanced security: CPKC maintains unmatched security for cross-border rail shipments. Clearing customs in-transit and avoiding a hand-off at the border eliminates stops in route that can expose freight to theft.
- “Reliable transit: Experience consistent, truck-like daily transit between the Southeast and Mexico. CPKC’s proprietary Laredo train bridge crossing has been the only intermodal service unaffected by shutdowns at the U.S.-Mexico border.
- “Superior sustainability: Schneider’s intermodal solutions offer a 62% reduction in CO2 emissions compared to Tier 5 truckload transportation.
- “Maximized payload: Increase payload and savings by 10% or more with Schneider’s lightweight, company-owned equipment and specialized heavy-haul permits.
- “Industry expertise: With a robust presence and over 30 years of experience in Mexico, Schneider is the cross-border expert shippers can trust.”
