Friday, December 13, 2024
Canadian Pacific Kansas City (CPKC) and Americold Realty Trust, Inc. (Americold) have announced plans to explore co-development opportunities in Mexico, marking the next phase of their strategic partnership to optimize the movement of temperature-sensitive commodities across North America, including the United States, Mexico, and Canada.
Since entering into their strategic collaboration in June 2023, CPKC and Americold have been focused on transforming the North American supply chain for temperature-controlled logistics. Through this partnership, CPKC provides efficient, single-line intermodal freight services, offering reliable, door-to-door transport with its TempPro™ temperature-protected intermodal containers. This solution is designed to compete with traditional over-the-road trucking, ensuring the safe and timely delivery of perishable goods.
Americold, recognized as a global leader in temperature-controlled logistics, is integral to maintaining the cold chain that connects the production, distribution, and consumption of temperature-sensitive products. Their extensive cold chain network supports some of the world’s largest food companies and ensures the delivery of safe and fresh products to consumers.
Building on this momentum, Americold and CPKC recently broke ground on their first collaborative development at CPKC’s Intermodal Facility in Kansas City, Missouri. The $127 million, 335,000-square-foot import-export hub is set to open in mid-2025 and will serve as a critical link for temperature-sensitive food shipments between the U.S. and Mexico. This new facility underscores the ongoing commitment of both companies to improving the efficiency and reliability of cross-border logistics.
Looking ahead, the two companies are now focused on expanding their efforts by exploring opportunities in Mexico, further enhancing their ability to streamline the transportation of temperature-sensitive goods across North America. This expansion aims to meet the growing demand for safe and efficient cold chain logistics while strengthening the connectivity between key markets in the U.S., Canada, and Mexico.
“Our strategic partnership with CPKC creates a platform that will deliver significant and sustainable supply chain value for existing and new customers in North America,” said George Chappelle, chief executive officer at Americold. “Exploring opportunities in Mexico is a natural continuation of this collaboration as we look at ways we can attack inefficiencies in the current cold chain.”
“We are excited to build on our successful strategic collaboration with Americold with new facilities in Mexico as we leverage the unrivalled reach of our North American network to support the cold storage supply chain,” said Keith Creel, CPKC President and Chief Executive Officer. “That network, combined with our premium intermodal services moving one of the largest fleets of refrigerated containers in the industry, and this growing collaboration with Americold, continues to create new transportation options for our customers shipping a range of food and other products across North America.”
Canadian Pacific Kansas City (CPKC) made a significant move last year by adding 1,000 new 53-foot refrigerated intermodal containers to its fleet. This expansion more than doubles CPKC’s existing fleet and enhances shipping options for customers utilizing the rapidly growing Mexico Midwest Express (MMX) premium intermodal service. MMX, North America’s first single-line rail service specifically for refrigerated shipments, connects the Midwest to Mexico, offering a more efficient alternative to the truck-based routes traditionally serving this market.
Looking forward, Americold has announced plans to invest between $500 million and $1 billion over the next five to 10 years in joint development projects with CPKC, as well as its other strategic partner, DP World. This substantial investment highlights the companies’ shared commitment to advancing cold chain logistics and expanding their services across North America. By enhancing the infrastructure for temperature-sensitive goods, the partnership aims to improve the efficiency and reliability of supply chains throughout the continent.
