Canadian railway company Canadian Pacific Kansas City (CPKC), which operates in Canada, the United States and Mexico, plans to maximize business opportunities in Mexico, working with the steel company Ternium. According to company information seen by SteelOrbis, 50 executives from CPKC will arrive in Mexico to meet with customers.
Without breaking down the information by country, CPKC announced a 44 percent increase in its billing for the second quarter of the year, compared to the same period last year, and in a telephone meeting with investors they mentioned the advantages of operating in Mexico.
“We are particularly encouraged by growth in Mexico as we recently added new steel products units trains from Lázaro Cárdenas into the interior of Mexico,” said CPKC Chief Marketing Officer John Brooks.
The seaport of Lázaro Cárdenas (which also houses the ArcelorMittal México facilities) is the main gateway for Mexico's international trade with Asia, and the main connection to the country's largest consumer market, Mexico City.
Within Mexico sales, Keith Creel, President and CEO of CPKC, highlighted that they currently need 3.9 days to transport cargo from San Luis Potosí (Mexico) to Chicago. Time less than 6.8 days for interchange rail or 4.0 days for truck transport.
With those advantages, Brooks said: “we are also working closely with both Ternium and FDI on their new industrial development opportunities that will further accelerate growth in this business over the coming months.”
Ternium in Nuevo León has one of the main steel production centers in Mexico. In addition, it recently announced that it will build a new $3.2 billion steel mill that will be in operation in the first half of 2026.
Such is the interest in the Mexican market that Creel said that this week that Brooks, along with 50 to 55 company executives will be in two locations in Mexico to review operations from a commercial point of view.
Creel concluded: “now we're turning our attention to Mexico (...) There's a lot of opportunity for some improvements in Mexico in the way we serve our customers, the way we control our costs, the way we manage the business.”