New single-line haul delivers fastest service in the
market
CALGARY,
AB, May 11, 2023 /CNW/ - Canadian Pacific
Kansas City (TSX: CP) (NYSE: CP) (CPKC) today launched the Mexico
Midwest Express (MMX) Series premium intermodal service bringing
customers the first truck-competitive, single-line rail service
option between the Midwest and Mexico.
As the only dedicated intermodal trains operating daily between
the U.S. Midwest and Mexico, the
MMX Series provides the fastest transit times in the rail industry
with seamless, expanded reach to more markets.
"The Mexico Midwest Express offers truly best-in-class service
and represents the growth potential of providing truck-competitive
service and reliable rail transportation options for shippers with
the newly-combined CPKC," said CPKC President and CEO Keith Creel. "This is a game changer for this
essential north-south trade corridor. Customers already are signing
up for these new options as we compete hard to grow our business."
Last month, CPKC announced new multi-year agreements with
Schneider and with Knight-Swift Transportation for intermodal
transportation services along the CPKC single-line north-south
corridor.
The MMX Series debuted May 11 with
trains MMX-180 and MMX-181 which now link Chicago, Kansas
City, Texas markets,
Monterrey and San Luis Potosi. The trains offer third-day
service to/from Laredo, fourth-day
service to/from Monterrey, and
4.5-day service to/from San Luis
Potosi. MMX provides total transit time of 98 hours from
Chicago to San Luis Potosi – a day faster than the
nearest competitor.
A diverse group of shippers, moving a variety of products, will
utilize this new service. Single-line haul efficiencies, combined
with seamless crossborder service, make CPKC intermodal transit
times competitive with over the road trucks. Converting trucks to
rail reduces emissions and makes highways safer, realization of the
benefits of the CPKC combination.
Since March 2022, dedicated
intermodal service between Lázaro Cardenas, Mexico and Chicago has been operating as a proof of
concept on an interline basis. CPKC is working with customers and
investing in infrastructure to unlock the full potential of the
newly combined network while continually raising the bar with
industry-leading safety and sustainability practices.
Forward looking information
This news release contains
certain forward-looking information and forward-looking statements
(collectively, "forward-looking information") within the meaning of
applicable securities laws. Forward-looking information includes,
but is not limited to, statements concerning expectations, beliefs,
plans, goals, objectives, assumptions and statements about possible
future events, conditions, and results of operations or
performance. Forward-looking information may contain statements
with words or headings such as "financial expectations", "key
assumptions", "will", "anticipate", "believe", "expect", "plan",
"should", "commit" or similar words suggesting future outcomes.
This news release contains forward-looking information relating,
but not limited, to, the future operational performance of the
Mexico Midwest Express (MMX) Series premium intermodal
service, the potential customers and demands of the new
service, the anticipated environmental and safety benefits of the
MMX intermodal service, and other related matters associated with
the MMX intermodal service and intermodal transporation services
agreements.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CPKC's experience and its perception
of historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
changes in business strategies; the fuel efficiency of railways and
CPKC's operations; the impacts of existing and planned capital
investments; North American and global economic growth; commodity
demand growth; sustainable industrial and agricultural production;
commodity prices and interest rates; performance of our assets and
equipment; sufficiency of our budgeted capital expenditures in
carrying out our business plan; geopolitical conditions; applicable
laws, regulations and government policies; the availability and
cost of labour services and infrastructure; the satisfaction by
third parties of their obligations to CPKC; carbon markets,
evolving sustainability strategies, and scientific or technological
developments; and capital investments by third parties. Although
CPKC believes the expectations, estimates, projections and
assumptions reflected in the forward-looking information presented
herein are reasonable as of the date hereof, there can be no
assurance that they will prove to be correct. Current conditions,
economic and otherwise, render assumptions, although reasonable
when made, subject to greater uncertainty.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CPKC's forward-looking information involves inherent risks and
uncertainties that could cause actual results to differ materially
from the forward looking information, including, but not limited
to, the following factors: changes in business strategies and
strategic opportunities; general Canadian, U.S., Mexican and global
social, economic, political, credit and business conditions; risks
associated with agricultural production such as weather conditions
and insect populations; the availability and price of energy
commodities; the effects of competition and pricing pressures,
including competition from other rail carriers, trucking companies
and maritime shippers in Canada,
the U.S. and Mexico; North
American and global economic growth and conditions; industry
capacity; shifts in market demand; changes in commodity prices and
commodity demand; uncertainty surrounding timing and volumes of
commodities being shipped via CPKC; inflation; geopolitical
instability; changes in laws, regulations and government policies,
including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; changes in
fuel prices; disruption in fuel supplies; uncertainties of
investigations, proceedings or other types of claims and
litigation; compliance with environmental regulations; labour
disputes; changes in labour costs and labour difficulties; risks
and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance
projects; sufficiency of budgeted capital expenditures in carrying
out business plans; services and infrastructure; the satisfaction
by third parties of their obligations; currency and interest rate
fluctuations; exchange rates; effects of changes in market
conditions and discount rates on the financial position of pension
plans and investments; trade restrictions or other changes to
international trade arrangements; the effects of current and future
multinational trade agreements on the level of trade among
Canada, the U.S. and Mexico; climate change and the market and
regulatory responses to climate change; anticipated in-service
dates; success of hedging activities; operational performance and
reliability; customer and other stakeholder approvals and support;
regulatory and legislative decisions and actions; the adverse
impact of any termination or revocation by the Mexican government
of Kansas City Southern de México, S.A. de C.V.'s Concession;
public opinion; various events that could disrupt operations,
including severe weather, such as droughts, floods, avalanches and
earthquakes, and cybersecurity attacks, as well as security threats
and governmental response to them, and technological changes; acts
of terrorism, war or other acts of violence or crime or risk of
such activities; insurance coverage limitations; material adverse
changes in economic and industry conditions, including the
availability of short and long-term financing; the pandemic created
by the outbreak of COVID-19 and its variants and resulting effects
on economic conditions, the demand environment for logistics
requirements and energy prices, restrictions imposed by public
health authorities or governments, fiscal and monetary policy
responses by governments and financial institutions, and
disruptions to global supply chains; the realization of anticipated
benefits and synergies of the CP-KCS transaction and the timing
thereof; the satisfaction of the conditions imposed by the U.S.
Surface Transportation Board in its March
15, 2023 decision; the success of integration plans for KCS;
the focus of management time and attention on the CP-KCS
transaction and other disruptions arising from the CP-KCS
integration; estimated future dividends; financial strength and
flexibility; debt and equity market conditions, including the
ability to access capital markets on favourable terms or at all;
cost of debt and equity capital; improvement in data collection and
measuring systems; industry-driven changes to methodologies; and
the ability of the management of CPKC to execute key priorities,
including those in connection with the CP-KCS transaction. The
foregoing list of factors is not exhaustive. These and other
factors are detailed from time to time in reports filed by CPKC
with securities regulators in Canada and the
United States. Reference should be made to "Item 1A - Risk
Factors" and "Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Statements" in CPKC's annual and interim reports on Form 10-K and
10-Q.
Any forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CPKC
undertakes no obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About CPKC
With its global headquarters in
Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpkcr.com to
learn more about the rail advantages of CPKC. CP-IR
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SOURCE CPKC