Mark Szakonyi, Associate Editor | Apr 19, 2012 2:42PM EDT
Norfolk Southern Railway and Kansas City Southern Railway are expanding their intermodal rail service linking Mexico and the U.S. by offering a dedicated 53-foot container service, providing shippers with more flexibility and efficiency for inland distribution.
The TMX service connects KCS’s intermodal facilities at Puerta Mexico, San Luis Potos and Salinas Victoria, Mexico, to NS’s intermodal hubs in Atlanta and Charlotte, N.C. The new service comes as cross-border traffic skyrockets, largely because of the ramp-up in shipment of auto vehicles and parts.
Cross-border rail traffic by value in 2011 rose about 14 percent year-over-year to $94.7 billion, according to the Bureau of Transportation Statistics. Truck trade between the U.S. and Mexico rose 11.4 percent to $296.8 billion in the same period.
The hundreds of millions of dollars KCS has spent in recent years on its Mexican rail network, operated by Kansas City Southern de Mexico, have helped tap automotive sector growth. The improved rail network also has attracted other intermodal customers, including shippers of white goods and electronics.
Contact Mark Szakonyi at mszakonyi@joc.com. Follow him on Twitter @Szakonyi_JOC.