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The Class I allied-service approach marches on. Canadian National Railway Co. and Union Pacific Railroad Oct. 2 created an intermodal service between Central Canada, Michigan, Texas and Mexico City — the first in a series of planned joint CN-UP initiatives aimed at improving transit times, expediting border crossings and providing more truck-competitive service.

The service — set to start Oct. 8 — would offer Detroit- and Toronto-area shippers third-morning delivery to Houston, fourth-morning arrival at UP's Laredo terminal and sixth-morning drop-off in Mexico City in cooperation with Transportatción Ferroviaria Mexicana S.A. de C.V.

CN would move Montreal, Toronto and Detroit shipments destined for Texas and Mexico to Memphis, Tenn., then interchange with UP, which would move traffic to Texas destinations and interchange Mexican shipments with TFM at Laredo. Northbound freight would follow the reverse pattern.

Per a marketing agreement, CN and UP can offer "through" pricing to shippers originating traffic destined to points on either railroad's network; the Class Is also can provide service through existing intermodal channel partners, while CN can offer shippers door-to-door service under a complete logistics package.
"The new UP/CN/TFM service offers shippers a highly competitive alternative to truck transportation in this important NAFTA corridor," said UP President Ike Evans in a prepared statement.