CPKC aims to turn surplus land, existing facilities into growth-fostering assets
11/20/2023
By Jeff Stagl, Managing Editor
In November, Canadian Pacific Kansas City is sharing a new presentation with shareholders that highlights some of ways the Class I plans to drive business growth in the near term.
Titled “The CPKC Advantage,” the presentation reviews how the railroad plans to leverage its 20,000-mile network — the only Class I system that stretches through Canada, the United States and Mexico — to develop new markets, divert more truck traffic and drive growth.
CPKC leaders are employing “the same playbook in a bigger playing field,” as they characterize it, given the merger of Canadian Pacific and Kansas City Southern in April and the current operational strategy that mimics CP’s approach. CPKC’s network accesses more than 30 ports, 30 auto facilities, 90 short lines and 200 transload centers.
The system also features unique and strategic land assets that can be better exploited to drive growth, CPKC leaders say in the presentation. There is surplus acreage across the network that could be used to offer shippers more options and create additional capacity at a low cost, they add.
For example, there are 180 undeveloped acres at CPKC’s International Freight Gateway (IFG) facility in Kansas City, Missouri, located in the heart of the Class I’s network. That land can be leveraged for franchise growth, CPKC leaders believe.
In June, CPKC and Americold Realty Trust Inc. reached an agreement to co-locate Americold warehouses along the Class I’s network, with the first facility to be built at IFG Kansas City. The idea: combine cold storage and value-added-services with expedited intermodal transportation to connect key frozen and fresh protein markets in the U.S. Midwest and produce markets in Mexico.
A new shareholder presentation highlights some ways CPKC plans to leverage its 20,000-mile network to develop new markets, divert more truck traffic and build business. Canadian Pacific Kansas CityMeanwhile, CPKC’s terminal in Port Arthur, Texas, features 17.5 acres, 10,000 feet of track and 2,530 feet of waterfront area with dock infrastructure. The facility affords an opportunity to develop a new export terminal that could serve as another outlet to move bulk products to overseas markets, CPKC leaders say.
Other growth opportunities abound in the state, as well. In south Texas near the Mexico border, CPKC is twinning its international bridge in Laredo to double capacity across the key gateway. Laredo is the nation’s busiest U.S.-Mexico border crossing.
Expected to open at 2024’s end, the second bridge will help accelerate traffic growth between Mexico’s industrial heartland and points in the United States and Canada, CPKC leaders say.
In northern Texas near Dallas, a terminal in Wylie features a 500-acre footprint located in one of the United States’ fastest-growing markets. Next year, CPKC expects to complete a 30-acre automotive compound at the terminal.
In addition, the location is ideal for a high-efficiency, multi-commodity, indoor-outdoor transload facility, CPKC leaders believe. The Wylie terminal plays into the Class I’s strategy of connecting origin markets in Canada and Mexico with key destinations in Texas.
The railroad’s closely located “twin” intermodal terminals in Bensenville and Schiller Park, Illinois, offer direct access to Chicago and points in northern Illinois, southern Wisconsin and eastern Iowa. Canadian Pacific Kansas CityChicago also is a vital destination point for CPKC — and most other North American railroads. The Class I recently consolidated intermodal operations at its terminal in Schiller Park near Chicago to create a land surplus totaling 75 acres. That acreage could be repurposed for traffic growth opportunities or be divested to generate revenue, CPKC leaders say.
And in nearby Bensenville, Illinois, they believe there is room for growth within the existing terminal. To that end, CPKC expects to complete a $300 million intermodal facility within that footprint in 2026.
The Class I’s “twin intermodal terminals” in Bensenville and Schiller Park offer shippers direct access to Chicago and to points in northern Illinois, southern Wisconsin, eastern Iowa and beyond.
Some facilities in Canada factor into CPKC’s real estate plans, as well. The railroad’s Vaughan Intermodal Terminal in Toronto features a 500-acre footprint and 150 vacant acres. The acreage could enable the railroad to double intermodal operations with minimal capital investment, CPKC leaders believe.
And to the west in Vancouver, British Columbia, the Class I’s terminal offers an “unmatched ability” to expand its footprint, they say. The existing intermodal facility — located in Canada’s largest trade gateway — is operating well below capacity. CPKC also owns more than 150 acres adjacent to the Vancouver facility.