CN, Union Pacific announce Canada-Mexico intermodal service

MONTREAL (Oct. 3, 2001) — Canadian National Railway and Union Pacific Railroad yesterday announced a new intermodal schedule that includes four-day service between Toronto and Laredo, Texas.

The new venture is the first in a series of CN-UP joint initiatives to improve transit times and rail service, expedite border crossings, and provide truck-competitive service, the companies said.

Beginning Oct. 8, CN and UP will offer Detroit- and Toronto-area shippers third-morning service to Houston; fourth-morning availability at UP’s intermodal facility in Laredo, Texas; and sixth-morning delivery in Mexico City in co-operation with Mexican railroad Grupo Transportacion Ferroviaria Mexicana (TFM).

The transit times are competitive with long-haul single-driver truck transit times, the companies said.

CN will move Montreal, Toronto, and Detroit shipments destined for Texas and Mexico south on its network to Memphis for interchange with UP. Union Pacific will then move the traffic to Texas destinations and steel-wheel interchange Mexican shipments to the TFM at Laredo. Northbound shipments will follow the reverse pattern.

Under the marketing agreement, CN and UP each have the ability to “through” price originating traffic destined to points on either network, which will result in improved pricing response times. CN and UP will provide service through their existing intermodal channel partners. CN will also offer customers door-to-door service as a complete logistics package.