Americold Realty Trust plans to locate warehouse facilities along the rail network of Canadian Pacific Kansas City (CPKC) as part of wider plans to expand intermodal transportation options and cold storage offerings for markets in the U.S. Midwest and Mexico.
The collaboration will also enable shippers to experience streamlined border crossing procedures, according to the two companies.
“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,” CPKC President and CEO Keith Creel said in a Wednesday news release.
CPKC (NYSE: CP) has single-line, expedited intermodal service between the Midwest and Mexico, along with a fleet of TempPro temperature-protected intermodal containers. The company also recently doubled its 53-foot refrigerated container fleet by adding 1,000 new containers as part of the railway’s expanded Mexico Midwest Express (MME) premium intermodal service for refrigerated shippers.
Meanwhile, Americold’s (NYSE: COLD) cold chain logistics network consists of producers and distributors.
“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. “The combination of Americold’s vast North American facilities network and world-class cold chain operating model with CPKC’s new MMX intermodal service and refrigerated assets will produce a new and unique offering to the food supply chain.”
CPKC said its MMX trains connect markets in Chicago, Kansas City, Missouri, and Texas with Mexico markets in Monterrey and San Luis Potosi. Service to and from Laredo is three days, service to and from Monterrey spans four days and service to and from San Luis Potosi is 4.5 days.
The railway, which is seeking to capture market share away from trucks, said the average intermodal train takes more than 300 trucks off the road, resulting in 75% fewer greenhouse gas emissions.
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