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CPKC, CSX create faster freight solutions with Southeast Mexico Express

1. CPKC and CSX launched the Southeast Mexico Express corridor. 2. SMX provides faster transit times and greater shipping capacity. 3. Key benefits include environmental sustainability and enhanced service reliability. 4. This collaboration expands CPKC's market reach across North America. 5. Schneider National endorses SMX for improved supply chain efficiency.

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Why Bullish?

The introduction of SMX positions CP favorably in growing transportation markets, similar to how past rail expansions have boosted shares. Enhanced connectivity with Mexico could lead to increased demand and revenue, reminiscent of previously successful strategic partnerships in the rail industry.

How important is it?

The SMX corridor significantly enhances CPKC's competitive position and operational capabilities, making it likely to positively influence stock prices. The collaboration with CSX also strengthens market presence, further justifying the importance score.

Why Long Term?

The SMX corridor's impact will unfold over time as it establishes itself in the market and captures customer preferences, akin to similar cases in the rail industry where initial launches took time to demonstrate sustained revenue growth.

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CSXSNDR
Direct Class I connection brings new competition, links U.S Southeast to Texas and Mexico markets  , /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) and CSX Corporation (NASDAQ: CSX) (CSX) have created a new rail transportation routing option for customers across the southern U.S. with the Southeast Mexico Express (SMX), the new east-west Class 1 corridor that connects shippers in Mexico, Texas and U.S. southeast. Officially launched on Dec. 1, 2024, the SMX is already providing automotive, intermodal and carload customers with faster transit times, greater capacity, and environmentally sustainable rail solutions. "The Southeast Mexico Express has created new opportunities for our customers across all of our lines of business, including intermodal, carload and bulk, through a unique collaboration that is already proving itself in the market," said Keith Creel, CPKC President & CEO. "With this corridor, we are leveraging the strengths of both CPKC and CSX, delivering faster transit times, greater efficiency and enhanced reliability. Together, we are providing shippers with a competitive, sustainable alternative for freight transportation." "The launch of the SMX is a testament to our dedication to enhancing connectivity and efficiency while deepening our reach into cross-border markets," said Joe Hinrichs, President and CEO of CSX. "This new corridor highlights how we are taking concrete, measurable actions to expand our network, enhance service, and unlock long-term growth for our customers." This innovative service expands capacity while creating seamless, highly-reliable shipping options across three key markets. The SMX collaboration between CPKC and CSX is addressing evolving customer demands. Schneider National, Inc. (NYSE:SNDR), a premier multimodal provider of transportation, intermodal and logistic services, has been providing its customers with this service where they are enjoying unparalleled efficiency and reliability in their supply chains. "Our collaboration with CPKC and CSX on the Southeast Mexico Express represents a meaningful improvement in cross-border logistics for our customers," said Schneider President and CEO Mark Rourke. "This new service delivers greater efficiency and reliability across the supply chain, reinforcing our commitment to seamless, flexible transportation solutions that meet the evolving needs of shippers throughout North America." Key advantages of SMX include: Direct connectivity: Links Mexico, Texas and U.S. Southeast. Market access: CPKC's single-line network connects shippers to diverse origin points across North America. Faster transit times: Time and cost efficiencies supported by infrastructure upgrades. Secure transportation: Advanced technology expedites border crossings while enhancing shipment security. Environmental sustainability: Replaces up to 300 semi-trucks per train, reducing emissions. Learn more about the enhanced shipping options of SMX by visiting cpkcr.com. Forward looking information  This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws in both the U.S. and Canada. Forward-looking information includes, but is not limited to, statements concerning the parties' expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "will", "anticipate", "believe", "expect", "plan", "should", "commit", "outlook", "guidance" or similar words suggesting future outcomes.  This news release contains forward-looking information relating, but not limited, to agreements between CPKC and CSX, the anticipated impact of the agreements on available shipping options for customers, the effects of the agreements on access to markets in Texas, Mexico and the southeast U.S., the ability to maintain increased line capacity and to access key markets and assumptions underlying or relating to any of the foregoing.  The forward-looking information contained in this news release is based on the parties' current expectations, estimates, projections and assumptions, having regard to CPKC's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: changes in business strategies, North American and global economic growth and conditions; commodity demand growth; sustainable industrial and agricultural production; commodity prices and interest rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; geopolitical conditions; applicable laws, regulations and government policies, including without limitation, those relating to regulation of rates, tariffs, import/export, trade, taxes, wages, labour and immigration; the availability and cost of labour, services and infrastructure; labour disruptions; the satisfaction by third parties of their obligations to CPKC; and carbon markets, evolving sustainability strategies, and scientific or technological developments. Although CPKC believes the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.  Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CPKC's forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward looking information, including, but not limited to, the following factors: changes in business strategies and strategic opportunities; general Canadian, U.S., Mexican and global social, economic, political, credit and business conditions; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and maritime shippers in Canada, the U.S. and Mexico; North American and global economic growth and conditions; industry capacity; shifts in market demand; changes in commodity prices and commodity demand; uncertainty surrounding timing and volumes of commodities being shipped via CPKC; inflation; geopolitical instability; changes in laws, regulations and government policies, including, without limitation, those relating to regulation of rates, tariffs, import/export, trade, wages, labour and immigration; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; disruption in fuel supplies; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labour disputes; changes in labour costs and labour difficulties; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; sufficiency of budgeted capital expenditures in carrying out business plans; services and infrastructure; the satisfaction by third parties of their obligations; currency and interest rate fluctuations; exchange rates; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; trade restrictions or other changes to international trade arrangements; the effects of current and future multinational trade agreements on the level of trade among Canada, the U.S. and Mexico; climate change and the market and regulatory responses to climate change; anticipated in-service dates; success of hedging activities; operational performance and reliability; customer, regulatory and other stakeholder approvals and support; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern de México, S.A. de C.V.'s Concession; public opinion; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; insurance coverage limitations; material adverse changes in economic and industry conditions, including the availability of short and long-term financing; the demand environment for logistics requirements and energy prices, restrictions imposed by public health authorities or governments, fiscal and monetary policy responses by governments and financial institutions, and disruptions to global supply chains; the realization of anticipated benefits and synergies of the CP-KCS transaction and the timing thereof; the satisfaction of the conditions imposed by the U.S. Surface Transportation Board in its March 15, 2023 final decision; the success of integration plans for KCS; disruptions arising from the CP-KCS integration; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favourable terms or at all; cost of debt and equity capital; improvement in data collection and measuring systems; industry-driven changes to methodologies; and the ability of the management of CPKC to execute key priorities, including those in connection with the CP-KCS transaction. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CPKC with securities regulators in Canada and the United States. Reference should be made to "Item 1A - Risk Factors" and "Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements" in CPKC's annual and interim reports on Form 10-K and 10-Q.  Any forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CPKC undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.  About CPKCWith its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf Coast to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR About CSXCSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links more than 240 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike. More information about CSX Corporation and its subsidiaries is available at www.csx.com. SOURCE CPKC WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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