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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Canadian Pacific Kansas City (CPKC) has declined to participate in any immediate consolidation of the rail industry , despite suggestions from some that it might, saying it is not necessary for the industry as it is currently structured.

“We believe a transcontinental merger would trigger a permanent restructuring of the industry and result in a disproportionately large railroad whose size and scope would require others to take action,” said Keith Creel, president and CEO of CPKC.

He explained that if implemented, it would likely result in an unnecessary wave of railroad mergers , “which is not the best way to support American businesses or the public interest today, and has the potential to create more problems than it solves.”

The company, he stated, remains focused on delivering more benefits and unique value-creating opportunities from its tri-nation network, which connects shippers across North America through effective interline service options.

“CPKC firmly believes that, given what the existing competitive landscape has proven to offer, any major rail merger poses unique and unprecedented risks to customers, rail employees, and the broader supply chain. Those risks would be exacerbated by the inevitable subsequent consolidation,” he said.

In this regard, he noted that the six major railroads in the United States are capable of offering their customers high-quality , virtually seamless transportation services across the continent.

This, he said, as evidenced by CPKC and CSX ‘s previous partnerships in the Southeast, as well as the recently announced partnership between BNSF and CSX, remains an opportunity for further cooperation between railroads “willing” to improve service and preserve optionality for shippers.

He also noted that benefits in support of transcontinental mergers can be achieved through new and expanded industry partnerships , innovations in customer service, and additional cooperation among railroads.

“CPKC continues to pursue these opportunities, such as its recently announced collaboration with CSX on the Southeast Mexico Express service connecting the southeastern United States with Mexico,” Creel said.

Against this backdrop, he indicated that the U.S. rail network has the capacity and operational fluidity necessary to safely drive many years of service improvement, volume growth, truck conversion, and the resulting value creation for the nation’s rail carriers in support of the U.S. economy.

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U.S. railroads CSX and BNSF have launched new intermodal services that will provide seamless and efficient coast-to-coast shipping solutions between the west and east coasts of the United States, as well as internationally.

“This collaboration demonstrates the power of partnership, providing greater flexibility, efficiency, and value for our customers. We expect these offerings to provide immediate and optimized service to the supply chain in key markets across the country,” said Jon Gabriel, vice president of consumer products for the BNSF Group.

They mentioned that these will include the introduction of direct coast-to-coast domestic intermodal services between Southern California and Charlotte, North Carolina, and Jacksonville, Florida.

A new service will also be launched between Phoenix, Arizona, and Atlanta, Georgia , with the goal of converting over-the-road (OTR) freight to rail through a seamless product between the two railroads.

Similarly, the introduction of new direct international intermodal services between the Port of New York and New Jersey, and Norfolk, Virginia, and Kansas City.

Between Phoenix and Flagstaff, two new 10,000-foot sidings will further support this growing market by enabling more efficient through operations on the route connecting to BNSF’s Southern Transcon.

“Through this new connectivity, CSX and BNSF are connecting the western and eastern U.S. markets, creating faster and more reliable service. Together, we’re opening up access to key markets and strengthening options for our mutual customers,” said Drew Johnson, CSX vice president of intermodal sales and marketing.

Both railways commented that these new customer-centric service products will offer immediate value to customers by increasing flexibility and optionality, while providing an integrated service for cargo moving across the country.

While not a merger, this announcement comes almost a month after the agreement between   Norfolk Southern Corporation (NSC) and Union Pacific (UP), a transaction valued at $85 billion and expected to generate approximately $2.75 billion in annual synergies. If completed, it would allow for the transportation of goods from the Pacific Ocean to the Atlantic coast.

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