Dive Brief:
- Union Pacific launched a new domestic intermodal service between Mexico and the southeastern U.S. on Oct. 2, tapping into demand for service from Mexico’s industrial markets to Florida, Georgia and North Carolina, the railroad announced.
- The new service will reach nine destinations across the three states. Transit times from Mexico to destination markets range from eight to 14 days, according to Union Pacific.
- The railroad launched the new service in partnership with Ferromex, Norfolk Southern Railway, CSX and Florida East Coast Railway.
Dive Insight:
For the Mexico to southeastern U.S. service, Mexican railroad operator Ferromex will handle transport to Eagle Pass, Texas, where Union Pacific will transport the cargo to Memphis, Tennessee. The cargo will then be transported to markets in Florida, Georgia and North Carolina, according to the release.
Union Pacific’s new service follows a recently announced arrangement between Norfolk Southern and Florida East Coast Railway. The deal provides Norfolk Southern access to Florida East Coast Railway’s intermodal terminals in Fort Pierce and Fort Lauderdale and complements its existing service with the railroad’s terminals in Titusville and Miami.
Access to the additional terminals will result in reduced drayage, which also translates into lower highway emissions and expenses, Norfolk Southern said.
"Florida East Coast Railway is ready to reach additional markets on the East and West Coasts of the United States by furthering its strong relationship with Norfolk Southern," Luis Hernández, VP intermodal with Florida East Coast Railway said in the release.
