CN, UP and Ferromex Team Up Against CPKC For Chicago to Mexico Traffic

On Monday, CN and UP announced a partnership with GMXT to provide premium intermodal service to multiple points in Mexico. Photo Courtesy of CN. 

CN, UP and Ferromex Team Up Against CPKC For Chicago to Mexico Traffic

By Justin Franz 

If anyone thought Canadian National would go away quietly after being rejected by Kansas City Southern as a merger partner in 2021, they were sorely mistaken. On Monday, CN announced a new partnership with Union Pacific and GMXT (Grupo Mexico, which operates Ferromex) to provide “best-in-class” intermodal service between Canada, the United States and Mexico. 

The announcement came just a week after Canadian Pacific and KCS merged to form Canadian Pacific Kansas City and days after the new road announced a similar deal with ​​Schneider National to move intermodal traffic between Chicago and ports in Mexico

GMXT has access to multiple terminals in Mexico, including at Monterrey, Nuevo Leon, and Silao, Guanajuato. The new service will also allow Canada-bound intermodal to use CN’s Elgin, Joliet and Eastern Railway to bypass Chicago congestion. The new service has been dubbed “Falcon Premium.”

“Falcon Premium service is a game changer for intermodal customers. By leveraging each partner’s best services and routes, we are creating a transformational new product. Our commitment is to run this service with the utmost focus to maximize speed, reliability, and customer satisfaction,” said Tracy Robinson, President and Chief Executive Officer of CN. “This service is an example of how collaboration and cooperation can improve supply chains for customers.”

Not to be outdone, however, CPKC announced Tuesday that it had secured a deal with Knight-Swift to move its containers between Chicago and Mexico beginning in mid-May.

This article was posted on: April 25, 2023