Schneider National announced Friday that it will be an intermodal service provider on the Canadian Pacific Kansas City line. It will serve as a strategic carrier on the intermodal line that connects Chicago to major ports and regions in Mexico.

“Our 30-plus years operating in Mexico and broad portfolio of services will bring an intermodal service offering into and out of Mexico that is comparable to the speed and efficiency of shipping over the road, but with the added benefit of sustainability,” said Mark Rourke, Schneider (NYSE: SNDR) president and CEO.

The new service is expected to start in mid-May and is part of Schneider’s longer-term goal of doubling the size of its intermodal unit by 2030. Schneider’s intermodal fleet includes company-owned chassis and more than 28,000 containers. Last year, the division executed more than 450,000 loads generating $1.3 billion in revenue.

The carrier changed rail lines in the West at the start of the year. It moved from BNSF (NYSE: BRK.B), which has a larger relationship with carrier J.B. Hunt (NASDAQ: JBHT), to Union Pacific’s (NYSE: UNP) rail line. Schneider now boasts the largest company-driver dray fleet on the UP.

In total, Schneider’s portfolio of truckload, logistics and intermodal offerings generated $6.6 billion in revenue last year.

The north-south rail corridor currently utilizes a bridge at the border in Laredo, Texas. A new rail bridge adding incremental capacity is expected to be completed by the end of 2024.

“Our team is eager to deliver truck-competitive services to Schneider on our newly-created, cross-border single-line network from Mexico into the United States,” stated Keith Creel, CPKC president and CEO.

Canadian Pacific and Kansas City Southern officially merged a week ago. 

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