CPKC and Knight-Swift Announce Multi-year Agreement
Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) and Knight-Swift Transportation Holdings Inc. (NYSE: KNX) announced today a new multi-year agreement to provide truckload intermodal transportation service on CPKC’s new single-line north-south corridor connecting Mexico, the United States and Canada. Knight-Swift is one of North America’s largest and most diversified freight transportation companies, providing multiple truckload transportation and logistics services.
“This agreement creates compelling new transportation solutions for Knight-Swift’s current and future customers looking for optionality and increased capacity in their supply chains,” said John Brooks, CPKC Executive Vice-President and Chief Marketing Officer. “As Knight-Swift transition their Mexico-U.S. traffic to CPKC starting in mid-May, we will focus on growth between Chicago, Texas and Mexico markets.”
Knight-Swift’s established Mexico customer base will be able to leverage CPKC’s broad network of rail lines, terminals, and cross-border efficiency and expertise to improve service reliability and competitiveness.
“Our agreement with the CPKC will provide another differentiated solution for our customers and their over-arching supply chains,” said Adam Miller, Knight-Swift Transportation CFO and Swift President. “The Knight-Swift team is looking forward to engaging with the CPKC railroad on service offerings, customer solution design and demand planning to help facilitate growth on the first single-line railroad connecting Mexico, the United States, and Canada. Our Transmex team and growing LTL offering will also benefit from the newly created railroad and will allow us to continue supporting our customers in new and different ways by providing thoughtful solutions with a solid underlying service product.”
CPKC’s International Railroad Bridge over the Rio Grande River at the U.S.-Mexico border at Laredo, Texas, offers a reliable alternative to congested highway ports of entry. A second span to expand the bridge’s capacity and further increase the efficiency of cross-border train movements is currently under construction and expected to be completed by the end of 2024.
Anticipated environmental benefits of CPKC include the avoidance of more than 1.6 million tons of greenhouse gas (GHG) emissions due to the expected improved operational efficiency of CPKC versus current operations and another 300,000 tons of GHG emissions with the diversion of 64,000 trucks to rail for a total reduction of 1.9 million tons of GHG emissions over the next five years. Diverting 64,000 long-haul truck shipments to rail annually with new CPKC intermodal services will reduce total truck vehicle miles travelled by almost 2 billion miles over the next two decades, saving US$750 million in highway maintenance costs.
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
Knight-Swift Transportation Holdings Inc. is one of North America’s largest and most diversified freight transportation companies, providing multiple truckload transportation and logistics services, as well as LTL services through ACT. Knight-Swift uses a nationwide network of business units and terminals in the United States and Mexico to serve customers throughout North America. In addition to operating the country’s largest tractor fleet, Knight-Swift also contracts with third-party equipment providers to provide a broad range of truckload services to our customers while creating quality driving jobs for our driving associates and successful business opportunities for independent contractors.
Source: Canadian Pacific Kansas City Limited