CALGARY, Alberta — A global operator of temperature-controlled warehouses will locate facilities along the CPKC network, the railway and Americold Realty Trust announced on Wednesday.
The first cold storage facility under the collaboration deal will be built in Kansas City, Mo., which is on the route of CPKC’s new Mexico Midwest Express intermodal service linking Chicago with points in Mexico.
CPKC’s temperature-controlled service aims to send U.S.-produced meat to Mexico and Mexican-grown produce to the U.S. It’s the first cross-border intermodal reefer service between the two countries.
“CPKC is pleased to collaborate with Americold to provide innovative solutions for our customers throughout North America with this Kansas City facility, the first of many we intend to build in the years to come,” CPKC CEO Keith Creel said in a statement. “CPKC’s new Mexico Midwest Express premium intermodal service, combined with one of the largest fleets of refrigerated containers in the industry, and now this collaboration, will further elevate this world-class service offering moving a range of food and other products to and from Mexico.”
CPKC announced in last month that it more than doubled the size of its fleet of refrigerated 53-foot containers with the acquisition of 1,000 new reefers.
Americold operates nearly 250 temperature-controlled warehouses around the globe.
“At Americold, we are constantly looking for innovative ways to create value for our large global customers. This partnership with CPKC leverages the strengths of both companies, and enables us to offer solutions together that we would not be able to offer separately,” Americold CEO George Chappelle said in a statement. “The combination of Americold’s vast North American facilities network and world-class coldchain operating model with CPKC’s new MMX intermodal service and refrigerated assets will produce a new and unique offering to the food supply chain.”
The MMX temperature controlled service will move fresh and frozen produce, baked goods, candy, and other food products northbound and beef, chicken, and pork to southern markets.
MMX trains now link Chicago, Kansas City, Texas markets, Monterrey and San Luis Potosi offering third-day service to/from Laredo, fourth-day service to/from Monterrey and 4.5-day service to/from San Luis Potosi. MMX provides transit time of 98 hours from Chicago to San Luis Potosi – a day faster than the nearest competitor, CPKC says.
Where will the KC warehouse be located?
A through train between CP and KCS has a convoluted path to make a setout or pickup at KC.
It is GOOD to see a RR actively seeking available business.
Nothing Wrong with Staying Competitive with the Union Pacific Just Another Beautiful Day in the Neighborhood
That would be “trying” to stay competitive with UP who has the shorter haul without foreign line interference on locally produced products from Mexico to the US. When you control 6 of the seven gateways between the US and Mexico I don’t think that UP is all that worried about this. But you are right, non government subsidized competition never hurt anyone…
How do they maintain the cold in the containers?
Some containers are built with coils and a pump system in the forward top of the container. They are run on a locally installed propane tank to keep the coolant circulating.
Ah yes, another interesting pipe dream.
First, the northbound Mexican avocado business is locked up literally by one exporter who has an almost a monopoly control on the business. It all goes by truck and good luck cracking this stronghold.
On the southbound side the Mexicans prefer chicken, pork or seafood including shrimp. They have plenty of these foods grown locally and cheaper than importing. They simply do not have a cultural taste for beef. When they do eat beef, they overcook it to well or well done, which virtually eliminates the flavor. Try finding a good steak in Mexico City.
There is growing concern among Mexican consumers over hormones and steroids in US produced chicken and pork. The same concern is evident for US produced corn.
The tropical fruits come off the gulf or west coast states. This can move via Nogales or El Paso or via the Gulf of Mexico ports.
There might be a southbound market for US corn in smaller container or truckload quantities, especially for the point of shipment tracing to avoid certain steroids, and fertilizers. Flour tortillas were a US invention.
This post is based on about ten years’ worth of real, practical experience dealing with the Mexican market.
Mr. Gibbons, I’ve got to disagree with you on this temperature-controlled US-Mexico market thing.
Here’s a quote from the US Meat Export Federation:
“January reports showed that beef exports declined in several major destinations with shipments increasing to Mexico, the Dominican Republic, the Philippines and Africa.
For January, Mexican pork exports remained strong at 96,800 tonnes up 11% from 2022. Export was valued at $191.2 million, which was up 40%. USMEF said the tight US labor situation makes Mexico an attractive market for bone-in hams for further processing. “
https://www.meatpoultry.com/articles/28136-usmef-pork-exports-to-mexico-are-highlight-in-january#:~:text=For%20pork%20exports%2C%20volume%20was,to%20the%20end%20of%202022.
If we take 96,800 tonnes (metric) and convert it to US tons, we get 106,704. If we use 46,000 pounds (23 tons) as a truckload weight this results in 4,639 truckloads of pork to Mexico from the US in just January. This equates to around 150 truckloads of pork per day exported from the US to Mexico.
CPKC is well suited to handle this traffic. US pork production is largely centered in and around Iowa. CPKC goes through Iowa on the route to Mexico. There are several large hog slaughter operations on the CPKC line or well within economical drayage distance.
As to the northbound produce, tropical fruits are basically of little or no concern. The leading commodities crossing the border at Laredo are are in order; 1) Avocados, 2) Tomatoes, 3) Lettuce, 4) Bell Peppers, 5) Cucumbers, and 6) Broccoli. These commodities make up 82% of the fresh fruits and vegetables imported through Laredo. These six commodities created 56,109 46,000-pound truckloads in 2022. That’s 154 trucks per day.
I don’t understand why the avocado guy wouldn’t want to put money in his pocket by switching from truck to a good intermodal service.