Canadian Pacific Kansas City is pushing ahead with growth initiatives linking Mexico and Canada, with chief executive Keith Creel arguing that the railway’s unique network is allowing it to outperform in a difficult freight environment.
Speaking at the J.P. Morgan Industrials Conference, Creel said the company is focused on “solutions, not excuses” as it navigates trade tensions, macroeconomic uncertainty and an oversupplied trucking market. Among the main growth drivers are stronger Canada-Mexico traffic, new temperature-controlled intermodal services, expanded cooperation with CSX and the continued use of CPKC’s single-line cross-border network.
Creel said the railway has been successful in connecting new markets and continues to post industry growth despite weak conditions more broadly. Quarter-to-date, revenue ton-miles are up 2.2%, although carloads and containers are down 1.7%, partly because the first quarter of 2025 was unusually strong as shippers rushed to move cargo before anticipated US tariffs.
He said trade disputes involving the US, Mexico and Canada are likely to be resolved, with Mexico potentially first in line for an agreement. According to Creel, the relationship between President Trump and Mexico remains constructive, and a renegotiated trade deal would unlock investment currently being held back by uncertainty.
In the meantime, the railway’s focus on bridging trade between Mexico and Canada through the United States is already delivering results. Creel said the corridor represented about 2% of CPKC revenue in 2024 and has now risen above 3%, generating nearly half a billion dollars in incremental revenue. He added that another $100 million is expected this year.
Traffic between the two countries includes products such as french fries, grain and petroleum. CPKC is also preparing to launch a new intermodal service with CSX next month using a dedicated train and a new interchange at Myrtlewood, Alabama, on the former Meridian & Bigbee line.
Creel said the acquired railroad had effectively been operating as a 10-mph route, but track upgrades are nearly complete and will allow operations at 49 mph between Meridian, Mississippi, and the outskirts of Montgomery, Alabama. That improvement will support a new Southeast Mexico Express service connecting Atlanta-area markets to Monterrey in about three days and central Mexico in four.
He compared the new offering to the company’s Midwest Mexico Express trains, which have grown significantly since the CP-KCS merger. Creel said the service may take time to build, but that early investment is essential to create long-term demand. Schneider is already serving as the anchor customer, and CPKC expects companies such as Amazon, automotive suppliers and truckload shippers to follow once reliability is proven.
The railway is currently about 40% of the way toward its merger-related target of converting 64,000 truckloads per year from highway to rail. Creel said progress has been slower than expected due to abundant truck capacity, low trucking prices and the time needed to roll out supporting infrastructure such as the Americold cold-storage facility that recently opened at the Kansas City intermodal terminal, along with related sites in Mexico and Saint John, New Brunswick.
Creel also used the opportunity to question the scale of truck conversion projected by Union Pacific and Norfolk Southern under their proposed merger, calling their goal of attracting 2 million truckloads highly ambitious and more complicated than it may appear.
