Class I rail carriers team up for cross-border intermodal service

Class I railroad carriers Norfolk Southern and KCS recently rolled out a new joint intermodal service between central Mexico and the southeastern region of the United States entitled TMX.

By ·

Class I railroad carriers Norfolk Southern and KCS recently rolled out a new joint intermodal service between central Mexico and the southeastern region of the United States entitled TMX.

Officials from both carriers described TMX as a 53-foot, rail-controlled container program in a dedicated route between KCS’ intermodal facilities at Puerta Mexico (Toluca), San Luis Potos and Salinas Victoria (Monterrey) in Mexico and NS’ intermodal facilities in Atlanta, Georgia and Charlotte, North Carolina.

Among the various shipper benefits of TMX for shippers cited by NS and KCS are:
-a newly-built 54-foot container fleet;
-attractive transit schedules;
-truck-competitive, unbundled ramp-to-ramp through rates published by the originating rail carrier;
-a cost-effective and transit-competitive option, particularly for non-asset based intermodal shippers; and
-efficient North- and South-bound Customs-clearance

TMX per diem and other program charges are administered by REZ-1, and door-to-door service options are available via Thoroughbred Direct Intermodal Services.

“The TMX fleet was created to provide a cross-border capacity option for non-asset service providers,” said C. Doniele Carlson, AVP Corporate Communications & Community Affairs at KCS, in an interview. “Non-asset providers have traditionally served smaller shippers and receivers so this fleet broadens the potential market.”

And the TMX service offers a flexible, cross-border intermodal option for small to mid-sized truckload shippers and provides single carrier service that avoids the cost and service delays encountered when moving across the U.S.-Mexico border via truck, noted Carlson.

Carlson added that KCS and NS continue to gain significant market-share working with key asset partners in this same corridor.  Despite this growth, the opportunity is significant for all channel partners as KCS’s share of the potential market is still small.

Regarding the next steps for the TMX service, Carlson said that this fleet will grow and expand to meet cross-border market demand.

An NS spokesperson told LM that the TMX service will benefit those shippers who do not own equipment and need a dependable supply of containers so they can distribute goods to the growing Mexican market.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Hub Group Resources
Not Your Grandfather's Intermodal
Transportation of freight in containers was first recorded around 1780 to move coal along England’s Bridgewater Canal. However, "modern" intermodal rail service by a major U.S. railroad only dates back to 1936. Malcom McLean’s Sea-Land Service significantly advanced intermodalism, showing how freight could be loaded into a “container” and moved by two or more modes economically and conveniently. As with all new technologies, there were problems that slowed the growth, which influenced many potential customers to shy away from moving intermodal.
Click here to download
Latest Whitepaper
The Cloud Supply Chain Data Network
Understanding the Power of a Shared Online Network to Connect Global Partners and Achieve High Data Quality Levels
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Digital Evolution: Streamlining Logistics and Supply Chain Operations
In this FREE virtual conference we'll define the challenges facing operations and offer solutions designed to create dynamic, automated networks that offer seamless communication, improved collaborative third-party relationships, and the ability to respond to changes at a moment's notice.
Register Today!
EDITORS' PICKS
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....

25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...