OMAHA, Neb. — Union Pacific has launched intermodal service linking Mexico with points in the Southeast via Memphis.
“In tandem with our diverse customer base, including our private asset and rail container channel partners, this new service introduces the largest influx of intermodal capacity for the Southeastern U.S. market out of Mexico,” UP said in a customer advisory on Wednesday. “It also reinforces Union Pacific’s steadfast commitment to serving Mexico markets, helps take trucks off congested highways, and offers customers a complete transportation solution for business traversing this key trade corridor.”
The new UP service will have a head start on cross-border service that Canadian Pacific Kansas City and CSX Transportation say they’ll begin late next year, assuming Surface Transportation Board approval of their plan to acquire and upgrade Genesee & Wyoming short line Meridian & Bigbee. The Meridian & Bigbee will serve as a link between CPKC’s Meridian Speedway at Meridian, Miss., and CSX’s Montgomery, Ala., hub.
UP says its domestic cross-border intermodal service will connect rapidly growing industrial markets of Mexico with areas of high consumer demand in the Southeast U.S.
The traffic originates on Ferromex at Monterrey and Silao and moves via the Eagle Pass, Texas, gateway. From there UP hauls the traffic to Memphis, where the containers are rubber-tired to the CSX and Norfolk Southern intermodal terminals.
UP arranges the dray move between terminals unless the customer specifies otherwise. The service is offered under a through rate that makes the moves seamless for the customer, railroad spokeswoman Robynn Tysver says.
Once volume reaches critical mass, UP will shift to steel wheel interchange with CSX and NS. “Opening it up rubber tire initially enables us to reach more markets faster and allows us to partner with both CSX and NS,” Tysver says.
Destinations on CSX include Jacksonville, Fla., and Winter Haven, Fla.
Points served by NS include Atlanta; Charlotte, N.C.; and Jacksonville. Via Florida East Coast, the service also will reach Fort Lauderdale, Fort Pierce, Miami, and Titusville, Fla.
CSX is a partner in the UMAX container pool with UP, while NS and UP are partners in the EMP container pool.
Note: Updated at 11:40 a.m. Central with comment from Union Pacific.
