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Panama Canal Railway train crossing a bridge. CPKC growth potential. - Supply Chain News

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CPKC Identifies Growth Potential in Panama Canal Railway Amid Drought Conditions

by Zyrene D.
01/25/2024
in Economic Indicators, Global Trade, Green Supply Chains, Importing & Exporting, Industry, Logistics & Transportation, Market Trends, Sourcing, Supply Chain, Sustainability & Ethics

CPKC President and CEO Keith Creel has highlighted an opportunity for expanding the railroad’s intermodal business through the Panama Canal Railway, amidst ongoing drought conditions affecting the Panama Canal. This situation has led to an increased reliance on rail services by some shippers to maintain the flow of containers.

During the Midwest Association of Rail Shippers Winter Meeting in Lombard, Illinois, on January 11, Creel expressed his observations on the unexpected challenges faced by the Panama Canal due to the drought. He noted the potential for growth in the Panama Canal Railway, which is jointly owned by CPKC and Mi-Jack Products, an Illinois-based company specializing in heavy-lifting equipment.

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The day after Creel’s address, shipping company Maersk announced its decision to utilize the Panama Canal Railway to enhance the reliability of its supply chains. This move comes shortly after CPKC, following the acquisition of Kansas City Southern by Canadian Pacific, became a 50% stakeholder in the Panama Canal Railway, thus expanding its reach in the region.

Creel described Maersk as a strategic partner for both CPKC and the Panama Canal Railway. The railway, spanning 47 miles and running parallel to the canal, has the capability to operate 10 trains in each direction continuously and can potentially increase to 32 trains per day. This capacity presents an avenue for CPKC to attract more business from container shippers.

Creel remarked on the unique service opportunities presented by the Panama railroad, viewing the current challenges as potential catalysts for new business opportunities.

Get the best supply chain report news insights on The Supply Chain Report. Visit ADAMftd.com for free international trade tools.

#CPKCExpansion #KeithCreel #IntermodalBusiness #PanamaCanalRailway #RailShipping #DroughtImpacts #PanamaCanal #MidwestRailShippers #SupplyChainReliability #PanamaRailExpansion #MaerskPartnership #MiJackProducts #RailwayLogistics #RailShippingSolution

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