JACKSONVILLE, Fla. — Genesee & Wyoming has a new partner in its CG Railway joint venture, which ferries freight cars across the Gulf of Mexico between Mobile, Ala., and Coatzacoalcos, Mexico.
Grupo Mexico Transportes will purchase SEACOR Holdings’ 60% stake in CGR pending regulatory approval, G&W announced today.
G&W initially formed a joint venture with SEACOR in 2017 to own and operate CGR, which has provided rail-ferry service between the ports of Mobile and Coatzacoalcos since 2001. SEACOR’s Seabulk subsidiary will continue to operate the vessels.
“This further strengthens our partnership with GMXT, a leader in rail transportation services in Mexico with a strong presence in the southern U.S., including 13 ports between the two countries,” Michael Miller, CEO for G&W North America, said in a statement. “Their network access and expertise, coupled with G&W’s ability to deliver safe and customer-centric first- and last-mile rail service, will enhance CGR’s overall service offering while extending the reach of CGR’s efficient and secure rail service into and out of Mexico.”
G&W and SEACOR spent $100 million to build two new 590-foot rail ferries, each of which can carry 135 freight cars. The ships, billed as the world’s largest rail ferries, halved the transit time across the gulf to three days. The Cherokee entered service in September 2021, while the Mayan made its maiden voyage in March 2022.
The ferry service handles more than 10,000 carloads a year, including shipments of chemicals and plastics, fructose and refined sugar, steel, and pulp and paper.
CG Railway and GMXT may offer a superior railcar transit offering v. CPKC to points south and east of Mexico City via Ferrosur. But CG Railway is somewhat capacity constrained as each of its two 135 car ferries make a round trip once per week so CG can handle 270 cars each way per week. CPKC can handle way more cars into / out of central Mexico.
Would appreciate knowledge base of where CG would most likely interchanges with C1’s. Also, it there a capability to handle intermodal in this service? Thanks.
This project has taken a long time to finally reach fruition but any way you look at it this is not good news for CPKC. Mobile is a great port to use for the service far better than New Orleans. Mobile gives you great access to Atlanta and a whole bunch of auto plants across the south. Plus, multiple direct routes to Chicago. And why go out of your way to Miami?
Miami would probably just be loads in and empty cars out. Florida consumes but doesn’t produce much.
So when does service to Port of Miami start?