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

By Jeff Berman, Group News Editor
April 25, 2012 - LM Editorial

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 headshot
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. .(JavaScript must be enabled to view this email address).


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!

Recent Entries

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

A number of key topics impacting the freight transportation and logistics marketplace were front and center at a panel at the Council of Supply Chain Management Annual Conference in San Antonio last week.

The relationships between third-party logistics (3PL) service providers and shippers are seeing ongoing developments due in large part to the continuing emergence and sophistication of omni-channel retailing. That was one of the key findings of The 19th Annual Third-Party Logistics Study, which was released by consultancy Capgemini Group, Penn State University, and Korn/Ferry International, a global talent advisory firm.

Optimism in the form of increasing profits was a key takeaway in the Annual Survey of Third-Party Logistics (3PL) CEOs, released earlier this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Conference in San Antonio.

Article Topics

News · Intermodal · Norfolk Southern · Mexico · cross-border · KCS · All topics

About the Author

Jeff Berman, 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.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA