The pressure to accelerate logistics chains between Mexico and the southeastern United States is leading railroads to compete in territory historically dominated by trucking. In this context, Canadian Pacific Kansas City (CPKC) and CSX Corporation (CSX) announced on Wednesday improvements to their premium Southeast Mexico Express (SMX) service, an intermodal initiative that seeks to gain competitiveness in transit times and expand rail reach to key markets in the region.

The companies reported that, since May 4, the service has been operating with a new schedule and route scheme that, according to the companies, allows them to offer transit times “competitive with trucks” between markets in the southeastern United States – such as Atlanta, Charlotte and Central Florida – and destinations in Texas and Mexico, including Dallas and Monterrey.

This is a significant change. The new SMX configuration reduces transit times on all previously available routes. Among the most notable adjustments is an improvement of approximately one day between Atlanta and Dallas, as well as a reduction of nearly 2.5 days between Atlanta and central Mexico , a corridor where time and operational consistency are critical factors for industries such as automotive, intermodal, and vehicle freight.

The improvements, the companies explained, stem from investments in rail infrastructure on the former Meridian & Bigbee Railroad (MNBR) corridor, including track work, bridges and signaling systems, as well as additional investments along the corridor that runs through Georgia, Alabama, Mississippi, Louisiana and Texas.

“These service enhancements, which provide approximately a 20 to 45 percent improvement in SMX transit times, reflect our ongoing commitment to providing more advanced and flexible transportation solutions to our customers who are looking for innovative ways to reach new markets,” said Keith Creel, president and CEO of CPKC.

The executive stated that the alliance with CSX allows them to build a rail alternative that is difficult to replicate in the regional market. “Together with CSX, the SMX offers a level of speed, flexibility, and reliability that reaches additional growth markets in the southeastern United States. This is a premium rail solution that cannot be replicated because we have the best route connecting carriers to Texas and Mexico, which will allow more trucks to switch to rail,” he added.

For his part, Steve Angel, president and CEO of CSX, noted that the improvements are part of a strategy to strengthen the rail corridor between the two regions. “The enhanced SMX service demonstrates the long-term investments CSX has made to strengthen this corridor and provide more consistent and reliable service to our customers,” he said.

Under the new operating model, the dedicated SMX service will offer two-day transit between Atlanta and Dallas; three days between Monterrey and Atlanta; and four days from central Mexico to Atlanta . In addition, the airlines have added new origin and destination points, expanding coverage to Charlotte, Jacksonville, and Central Florida.

The rail investment also reflects the operational restructuring resulting from the acquisitions of segments of the former Meridian & Bigbee Railroad by both CPKC and CSX. This reconfiguration allowed for the establishment of a direct Class I-to-Class I rail interchange near Myrtlewood, Alabama, enabling an east-west corridor with greater freight capacity between the southeastern United States, Texas, and Mexico.

The service, originally launched in December 2024, has begun attracting logistics operators interested in rail corridors with performance closer to that of road transport. One of them is Schneider National , a firm specializing in multimodal and intermodal transport.

“Schneider has seen firsthand the value of ongoing collaboration with our rail partners to bring innovative new intermodal products to market,” said Mark Rourke, president and CEO of Schneider. “The enhanced Southeast Mexico Express offers more reliable, truck-like service, making it an attractive option for shippers looking to transport goods between Texas, Mexico, and the southeastern United States.”

Although the railway companies’ discourse focuses on efficiency and sustainability, the underlying issue also points to increasingly aggressive competition to capture cargo traditionally transported by road. According to the companies, each SMX service train could replace up to 300 tractor-trailer trucks , a narrative that combines environmental pressure, operational efficiency, and available capacity in corridors where trucking faces growing challenges of congestion and cost.

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