Kansas Metropolis Southern expands Mexico rail service
The proposed $29 billion merger between Canadian Pacific (NYSE: CP) and Kansas City Southern (NYSE: KSU) goals to capitalize on an anticipated improve within the circulation of commerce among the many U.S., Canada and Mexico.
The merger would create the primary firm with a rail community spanning all three international locations and improve the facilitation of the motion of products throughout the three nations.
“The brand new competitors we are going to inject into the North American transportation market can’t occur quickly sufficient, as the brand new United States-Mexico-Canada Settlement (USMCA) commerce settlement amongst these three international locations makes the environment friendly integration of the continent’s provide chains extra essential than ever earlier than,” Keith Creel, CP president and CEO, mentioned in an announcement saying the proposed merger.
The proposed CP-KCS merger comes towards the backdrop of Kansas Metropolis Southern’s $167 million funding in Mexico final yr.
Kansas Metropolis Southern de México (KCSM), KCS’ Mexican operations, embody railways serving northeastern and central Mexico in addition to key port cities together with Veracruz, Tampico and Lazaro Cardenas.
One in every of KCS’ main initiatives was the completion of a part of a 12.11-mile double-track line that connects Mexico’s port of Veracruz on the Gulf of Mexico.
KCSM ran the primary income prepare over the brand new double-track entry into the expanded Port of Veracruz in February, firm spokeswoman Dionele Carlson advised FreightWaves.
“This new rail infrastructure is anticipated to make the port extra aggressive and productive for imports from the U.S., South America and Europe,” Carlson mentioned. “The mission was accomplished in coordination with the Integral Port Administration of Veracruz (APIVER) to enhance rail and ship asset utilization, effectivity and connectivity. Earlier than the bypass, KCSM didn’t have direct entry into the Port of Veracruz.”
The 12.11-mile rail connection begins at KCSM’s Santa Fe connection level within the state of Veracruz, which is already lined by the corporate’s rail community, and extends to the expanded Port of Veracruz.
The Mexican authorities invested over $19 million to construct two new terminals on the Port of Veracruz final yr. Veracruz is a key strategic level for commerce on Mexico’s east coast in addition to the most important seaport situated close to Mexico Metropolis.
“KCSM’s new rail connection is an element of a big growth carried out by the [Veracruz] port authority, together with the development of recent intermodal, refined merchandise, grain, automotive and common merchandise terminals,” Carlson mentioned. “Direct entry into the brand new terminal complicated will permit KCSM to develop its enterprise between central Mexico and the traditionally essential port of Veracruz.”
Carlson mentioned KCS will proceed to concentrate on extra capability initiatives throughout 2021, together with starting development on a second worldwide rail bridge on the Laredo, Texas-Nuevo Laredo, Mexico, border crossing.
After dipping in late February from the winter storm, Laredo outbound home intermodal quantity (ORAILDOM.LRD) have risen above year-ago ranges.
KCS’ route via Laredo connects to Mexico Metropolis in addition to the ports Veracruz, Tampico and Lazaro Cardenas.
“Right now, KCS processes a mean of 26 trains in a 24-hour interval. Including the second bridge will allow the Laredo gateway to accommodate 65 to 80 trains per day,” Carlson mentioned. “KCS continues working with related authorities entities on allowing whereas doing preliminary design work towards a second cross-border bridge at Laredo.”
Furnishings maker expands in Laredo
Palliser Furniture Upholstery Ltd. not too long ago leased 117,191 sq. ft of producing and logistics house on the Sophia Industrial Park in Laredo, Texas.
“We merely outgrew our previous location. We had been unfold out amongst a number of buildings and this transfer permits us to merge our services right into a single location in Laredo,” Mike Hofmann, COO of Palliser, mentioned in a launch.
Palliser Furnishings is predicated in Winnipeg, Canada. The corporate has operations in Canada, the U.S. and Mexico and employs greater than 2,000 folks.
Palliser’s new constructing is situated on 20 acres simply off Interstate 35 and about 10 miles from the World Commerce Bridge. It was developed by Humphrey Growth, a brand new department of Gontor Group, a global commerce firm primarily offering customs and logistics providers in North America.
“Our imaginative and prescient was to be prepared for a tsunami of logistics operations that the Laredo hall will expertise within the subsequent couple years due to the up to date United States-Mexico-Canada Settlement,” Alejandro Gonzalez, COO of Humphrey Growth, mentioned. “We envisioned a necessity for a brand new actual property improvement within the space that might service multinational corporations.”
Vitromex USA, a tile producer headquartered in Saltillo, Mexico, additionally not too long ago moved right into a 230,900-square-foot constructing on the Sophia Industrial Park.
“This new location is exceptionally bigger, permitting us for elevated stock capability,” Virgilio Ayala, Vitromex USA’s operations supervisor, mentioned.
PGT Trucking opens new terminals in Arizona and Arkansas
PGT Trucking Inc. not too long ago introduced the opening of services in Phoenix and Fort Smith, Arkansas.
The addition of the Phoenix terminal and the relocation of the Poteau, Oklahoma, employees to Fort Smith will permit the corporate to develop its transportation providers, based on firm officers.
“We’re excited to supply extra delivery options into the Southwest by the use of our new Phoenix location,” Chad Marsilio, COO of PGT, mentioned in a launch.
The Phoenix terminal is situated close to the Phoenix Sky Harbor Worldwide Airport at 2625 E. Air Lane.
PGT Trucking, based in 1981, is predicated in Aliquippa, Pennsylvania. The multiservice transportation agency affords flatbed, devoted, worldwide and specialised providers.
PGT operates about 1,000 energy models and over 1,500 trailers serving the metal, equipment, oil and fuel, uncooked supplies, aluminum and automotive industries.
CBP seizes $1.4M in medicine in Laredo
U.S. Customs and Border Safety (CBP) in Laredo, Texas, seized over 70 kilos of methamphetamine in two separate, unrelated incidents.
The primary case occurred March 18 at Laredo’s World Commerce Bridge cargo facility. CBP officers had been checking a tractor hauling a cargo of multipurpose rock panel paste from Mexico. The officers found 4 containers with 48.58 kilos of alleged methamphetamine inside. The narcotics have an estimated avenue worth of $971,787.
The second seizure occurred March 19 additionally on the World Commerce Bridge. Officers checking a tractor-trailer manifesting a fiberglass ornamental determine from Mexico found 23 kilos of alleged methamphetamine. The narcotics had an estimated avenue worth of $451,502.
The narcotics have a mixed avenue worth of $1.4 million.
CBP seized the narcotics and the instances had been turned over to Homeland Safety Investigations.
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Extra articles by Noi Mahoney