CPKC, Americold exploring co-development opportunities in Mexico
CALGARY, AB, Dec. 12, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX:CP) (NYSE:CP) (CPKC) and Americold Realty Trust, Inc. (NYSE:COLD) today announced plans to formally explore co-development opportunities in Mexico as part of their continued strategic collaboration focused on optimizing temperature-sensitive commodity flows between the United States, Mexico and Canada.
Americold and CPKC established a strategic collaboration in June 2023 to optimize temperature controlled logistics across North America. CPKC connects North American markets with single-line, expedited intermodal freight transportation and a fleet of TempPro™ temperature-protected intermodal containers for reliable door-to-door transit competitive with over the road trucks. Americold is a global leader in temperature-controlled logistics and its cold chain ecosystem plays an integral role in the food supply chain connecting production, distribution and consumption for many of the largest food companies in the world.
In February of this year, Americold announced plans for its first development with CPKC at their Intermodal Facility in Kansas City, Mo., and broke ground on the 335,000-square-foot, $127 million import-export hub in June. The new facility is planned to open mid-2025 and will support both importers and exporters of temperature sensitive food between Mexico and the United States.
"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," said George Chappelle, chief executive officer at Americold. "Exploring opportunities in Mexico is a natural continuation of this collaboration as we look at ways we can attack inefficiencies in the current cold chain."
"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," said Keith Creel, CPKC President and Chief Executive Officer. "That network, combined with our premium intermodal services moving one of the largest fleets of refrigerated containers in the industry, and this growing collaboration with Americold, continues to create new transportation options for our customers shipping a range of food and other products across North America."
Last year, CPKC announced the addition of 1,000 new 53-foot refrigerated intermodal containers to its network, more than doubling CPKC's existing fleet and bringing more shipping options to customers using the expanding Mexico Midwest Express (MMX) premium intermodal service. MMX is North America's first single-line rail service offering for refrigerated shippers from the Midwest to Mexico, a market currently served by trucks.
Americold plans to invest between $500 million and $1 billion over the next five to 10 years in development projects with CPKC and its other strategic partner DP World.
About Americold Realty Trust, Inc.
Americold is a global leader in temperature-controlled logistics real estate and value-added services. Focused on the ownership, operation, acquisition, and development of temperature-controlled warehouses, Americold owns and/or operates 239 temperature-controlled warehouses, with approximately 1.5 billion refrigerated cubic feet of storage, in North America, Europe, Asia-Pacific, and South America. Americold's facilities are an integral component of the supply chain connecting food producers, processors, distributors, and retailers to consumers.
About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC.
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SOURCE CPKC