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Canadian Pacific Kansas City and Americold Realty Trust Collaborate in Mexico

Canadian Pacific Kansas City (CPKC) and Americold Realty Trust, Inc. have revealed plans to expand their strategic partnership by exploring new co-development opportunities in Mexico. This decision comes as part of their ongoing commitment to improve the movement of temperature-sensitive goods across North America, including vital trade between the United States and Mexico.

Established in June 2023, CPKC and Americold's collaboration marks a significant step in enhancing logistic solutions tailored for commodities that require strict temperature controls. CPKC is lauded for its ability to connect various North American markets through a unified and streamlined freight transportation network, which includes the utilization of their specialized TempPro™ containers designed for temperature-sensitive cargo.

Americold stands as an industry leader in the field of temperature-controlled logistics, managing an extensive ecosystem that facilitates the distribution of perishable goods. With a vast network of facilities essential for linking food producers to retailers, Americold's services are instrumental in ensuring the uninterrupted supply of food to consumers.

Expansion into Mexico: A Strategic Move

In February 2024, the companies initiated their first development project at CPKC's Intermodal Facility in Kansas City, Missouri. This project features a state-of-the-art 335,000-square-foot import-export hub and is set to open in mid-2025. Notably, this facility is strategically situated to assist exporters and importers of temperature-sensitive food products between the US and Mexico.

George Chappelle, the CEO of Americold, expressed optimism about their collaboration with CPKC: “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.” He emphasized that pursuing opportunities in Mexico is a logical progression as they aim to address inefficiencies present in the current cold chain logistics.

Keith Creel, President and CEO of CPKC, added insights into the collaboration: “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.” This collaborative effort not only enhances logistics capabilities but also expands transportation options for customers across a diverse range of products.

Enhancements in Logistics Services

Last year, CPKC took significant steps to strengthen its logistics services by introducing 1,000 new 53-foot refrigerated intermodal containers into its fleet, effectively doubling its capacity and improving service offerings. One such initiative is the launch of the Mexico Midwest Express (MMX) service, which enables refrigerated shippers to utilize a direct single-line rail service from the Midwest to Mexico, an area that has primarily been serviced by trucks.

Americold has articulated an ambitious vision for further investments in collaboration with CPKC, with plans to allocate between $500 million and $1 billion over the next five to ten years for various development projects, including those with other key partners like DP World.

About CPKC and Americold

American Cold Realty Trust is recognized globally for its innovative temperature-controlled logistics real estate solutions, focusing on the management and development of temperature-regulated warehouse facilities. With operations spanning North America, Europe, Asia-Pacific, and South America, Americold prides itself on its crucial role in the food supply chain.

As North America’s only single-line transnational railway, CPKC provides essential connectivity encompassing approximately 20,000 route miles. This extensive network facilitates unparalleled access to major ports and markets, making CPKC a pivotal player in the freight transportation sector.

As both companies continue to innovate and develop their services, the expansion into Mexico represents a new chapter of growth aimed at enhancing the efficiency and capacity of the temperature-sensitive supply chain across North America.