CSX and CN set to launch new intermodal freight service in joint venture

CSX and Canadian National Railway (CN) are set to collaborate to launch a new intermodal freight service that connects Montreal and Southern Ontario to Philadelphia, New Jersey, New York and New York City’s metropolitan area.

It is believed that the freight market will become increasingly dependant on demand accelerated by the consumer economy with the rail sector needing to create new intermodal services that can compete with over the road options.

“This interline service fits perfectly with our strategic focus on feeding our unique network through organic and inorganic growth opportunities, including extending our reach into new geographic markets,” said JJ Ruest, president and chief executive officer at CN.

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It is believed that the new intermodal offering will convert long-haul trucks to interline rail services.

“Trains will run directly into the heart of the metropolitan markets of Toronto and Montreal via CN intermodal yards, making this partnership a natural opportunity for both railroads,” commented Keith Reardon, senior vice-president of consumer product supply chain at CN.

The new intermodal service agreement is set to launch on October 7, 2019.

“At CSX, we’re continually evaluating our network to increase efficiency and improve the quality of the service we offer to customers,” added Mark Wallace, CSX executive vice president of sales and marketing. “Offering all-rail intermodal service from the East Coast to Montreal and Toronto aligns with our objectives for providing faster, more efficient service while positioning both CSX and CN for future growth.”