This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
North American railroads will regain their “intermodal mojo” in 2020 by investing for the future and adapting to the evolving consumer market segment. We live in a global marketplace, where consumers expect their products to be available on the shelves or delivered to their door on time. In order to keep up with demand, all the players in the supply chain, whether it be the steamship lines, the ports, or the railroads, have to invest so that the infrastructure is in place to support demand.
As a forward-looking company, CN over the years has grown into a transportation and logistics company with a 20,000-kilometer rail network touching three coasts in North America, with 23 intermodal terminals serving nine ports. CN has many projects underway that will give our customers options that will benefit the end consumer. The recent acquisition of TransX, one of Canada’s largest and oldest transportation companies, for example, will allow CN to deepen its supply chain focus, strengthening its intermodal offering, notably in the fast-growing refrigerated segment.
The new joint intermodal service offering from CN and CSX is another example of CN’s strategic focus on the consumer market segment. This new intermodal service links CN’s greater Montreal and southern Ontario areas with the CSX-served ports of Philadelphia and New York–New Jersey, and the New York City metropolitan area. Trains will run directly into the heart of the metropolitan markets of Toronto and Montreal via CN intermodal yards, positioning both railroads for future growth.
Not only is it important to grow existing partnerships, but in this fast-paced environment it is crucial to invest in the future. CN is pursuing a joint venture with Hutchison Ports and the Port of Quebec to open a new intermodal container terminal in Quebec. Scheduled to open in spring 2024, this new state-of-the-art container terminal will accommodate vessels up to 13,000 TEU with a direct rail service to end markets in Ontario and the US Midwest.
CN will continue to expand capacity and foster additional supply chain solutions to help our customers win in their marketplace. By focusing on future growth, all North American railroads will regain their “mojo.”