Logistics across US-Mexico border
CPKC and CSX add new rail route across Mexico and southeast US
A new Class 1 rail corridor from CPKC and CSX is reshaping cross-border finished vehicle logistics with enhanced capacity, faster transit times, and expanded access to key ports and OEM production hubs.
A new rail route launched by Canadian Pacific and Kansas City (CPKC) and CSX Corporation connects Mexico, Texas, and the southeastern US, offering increased capacity and flexibility for cross-border automotive shipments.
The Southeast Mexico Express (SMX) launched in December 2024 and forms a single Class 1 corridor across several origin points across the region. Infrastructure upgrades, including track improvements and optimised routes, offer faster transit times across the service compared to other existing options. An interchange carrier and 158 miles have been removed from the route compared to the current New Orleans route, for example.
OEMs such as Stellantis, Honda and Audi have manufacturing facilities in Mexico that are connected to CPKC routes. It has not yet been confirmed if any utilise the new SMX route, however.
Upgraded intermodal infrastructure
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Ports on both sides of the US-Mexico border – including Lázaro Cárdenas, Veracruz, Brunswick and Jacksonville – now have a direct interchange link to vehicle manufacturing and population hubs, such as Mexico City. These ports were some of the busiest in North American for finished vehicle flows in 2024, across both imports and exports, so the increased capacity for finished vehicles offered by the new route can make deliveries to dealers and intermodal locations faster and more efficient. Trucks used along the route have also been upgraded to support intermodal volume, and track speeds have been increased to facilitate increased conversion between truck and rail.
“The SMX has created new opportunities for our customers across all of our lines of business, including intermodal, carload and bulk, through a unique collaboration that is already proving itself in the market,” explained Keith Creel, CPKC president & CEO.
Strengthened cross-border logistics
The route is also designed to optimise cross-border logistics, driven by evolving customer needs.
“The launch of the SMX is a testament to our dedication to enhancing connectivity and efficiency while deepening our reach into cross-border markets,” commented Joe Hinrichs, president and CEO of CSX.
Geopolitical tensions, including fluctuating tariffs on finished vehicles and parts from Mexico, has impacted the established flow of vehicles and parts across the US-Mexico border, prompting automakers to rapidly adapt inbound and outbound supply chains.
In response, increased capacity of railroads and routes is being sought by automakers to ensure that any further changes can be capitalised upon or disruption mitigated. Earlier this year at FVL North America, Todd Myers, director of finished vehicle logistics at Nissan North America, warned of a “capacity bubble” that may occur once vehicle flows across the border returned to their normal levels and suggested rail routes could be one solution to meet the required capacity.
Infrastructure improvements along the route offer faster transit time to the border, while advanced technology in carriages expedites border crossings and checks, CPKC reported.
Schneider National, Inc, a transportation and logistics service provider, has already been leveraging the cross-border efforts of the SMX for its automotive customers. “This new service delivers greater efficiency and reliability across the supply chain, reinforcing our commitment to seamless, flexible transportation solutions that meet the evolving needs of shippers throughout North America,” explained president and CEO Mark Rourke.
Automotive Logistics has reached out for more information and will update this story as it becomes available.
