CPKC CEO touts merger’s cross-border performance, impact on automotive supply chain – Trains

CPKC CEO Keith Creel Highlights the Impact of the Canadian Pacific-Kansas City Southern Merger on Sustainable Development Goals

Introduction

LOMBARD, Ill. — CPKC CEO Keith Creel attended the Midwest Association of Rail Shippers Winter Meeting, an event focused on alliances in the rail industry. Creel spoke about the positive outcomes of the Canadian Pacific-Kansas City Southern (CPKC) merger and its contribution to the supply chain, particularly in relation to the Sustainable Development Goals (SDGs).

Enhancing Cross-Border Service

One notable achievement resulting from the merger is the introduction of MMX (Mexico Midwest Express) intermodal trains 180 and 181. These trains connect the Bensenville terminal outside Chicago to key markets in Mexico, covering a distance of approximately 2,300 miles to Monterrey and an additional 400 miles to Mexico City. Creel emphasized the reliability of these trains, stating that they consistently arrive within the expected timeframe, contributing to sustainable growth and reducing environmental impact by replacing truck transportation.

• MMX intermodal trains 180 and 181 provide reliable cross-border service between Chicago and Mexico.
• The trains operate at a 94-95% reliability rate, meeting customer expectations.
• CPKC aims to create a backbone for new supply chains and reduce road transportation for environmental benefits.

Competition and Collaboration

Creel acknowledged that CPKC is not the only company serving the cross-border market. The Canadian National-Union Pacific-Ferromex Falcon Premium service has also entered this sector. However, Creel emphasized CPKC’s advantages, such as having the most reliable route, a seamless border crossing, and being the only single line operator. These factors contribute to higher reliability, efficiency, and velocity compared to services with multiple handoffs and interchanges.

1. CPKC faces competition from the Canadian National-Union Pacific-Ferromex Falcon Premium service in the cross-border market.
2. CPKC’s route offers superior reliability, efficiency, and velocity due to its seamless operations.
3. Multiple handoffs and interchanges in other services reduce reliability and efficiency.

Addressing Border Security Challenges

Creel highlighted the importance of border security in maintaining efficient operations. He expressed gratitude for the security measures implemented by KCS de Mexico, a company acquired by CPKC, which has contributed to the creation of a secure border crossing between the United States and Mexico. This secure crossing has become increasingly crucial amid challenges related to immigration at other border gateways.

• KCS de Mexico’s investment in security measures has resulted in the most secure border crossing between the United States and Mexico.
• CPKC’s Laredo terminal benefits from international crews qualified to bring trains from Mexico, eliminating the need for crew changes at the international bridge.
• Efficient train movement contributes to fluidity, security, and improved customer experience.

Achieving a “Closed Loop” for the Auto Business

The CPKC merger has allowed Creel to fulfill his long-standing goal of creating a “closed-loop supply chain” for finished vehicles. This involves loading cars in one location, delivering them to the market, unloading them, reloading them at the destination, and returning them to the original location. CPKC’s ability to operate seamlessly across borders enables this closed-loop system for the automotive industry.

• CPKC’s merger enables the creation of a closed-loop supply chain for finished vehicles.
• The company can load cars in Canada or the U.S., transport them to Midwest markets, and invest in automotive unloading facilities.
• This closed-loop system benefits the automotive industry by facilitating the transportation of parts between Mexico and the Midwest, supporting the production of vehicles.
• Partnerships with trucking companies like Schneider further enhance the supply chain by providing first mile and last mile services.

Conclusion

The CPKC merger has had a significant impact on the rail industry, particularly in relation to the SDGs. The company’s focus on reliability, efficiency, and sustainability aligns with SDG 9: Industry, Innovation, and Infrastructure. By providing reliable cross-border service, enhancing security measures, and creating a closed-loop supply chain for the automotive industry, CPKC contributes to SDG 11: Sustainable Cities and Communities and SDG 12: Responsible Consumption and Production. The successful implementation of these initiatives demonstrates CPKC’s commitment to sustainable development and its role in shaping the future of the rail industry.