Canadian Pacific Kansas City Drives $500M Mexico-Canada Revenue with New Intermodal Services
Canadian Pacific Kansas City lifted quarter-to-date revenue ton-miles by 2.2% while carload and container volumes fell 1.7% after 2025 tariff-driven rush. Mexico-Canada traffic now contributes north of $500 million in annual revenue (up from 2% to over 3% of total), with a further $100 million expected this year.
1. Growth Strategies
Chief Executive Keith Creel emphasized proactive solutions to volume headwinds by expanding Canada-Mexico lanes, launching Americold temperature-controlled intermodal moves linking Mexico, the Midwest and Canada, developing interline service with CSX from Mexico to the Southeast, and leveraging single-line cross-border operations.
2. Traffic and Revenue Performance
For the quarter to date, revenue ton-miles rose 2.2% while carload and container volumes declined 1.7% versus strong 2025 comparisons. Canada-Mexico traffic grew from 2% to over 3% of total revenues, generating more than $500 million in incremental revenue with an additional $100 million expected this year.
3. New Intermodal Services
Next month will see a dedicated intermodal train launch at Myrtlewood, Ala., via the new CSX interchange on the former Meridian & Bigbee line. The railway’s acquisition of the 10-mph short line from Genesee & Wyoming underpins these service enhancements for commodities like french fries, grain and petroleum products.