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CSX collaborates with cross-border customers


CSX de México Hosts 15th Annual Customer Forum

As the third largest goods trading partner for the U.S., Mexico is vital to American business. But it’s not just Mexico’s close proximity that makes for a good partnership. Mexico is a major producer of many consumer goods such as cars, electronics and appliances, resulting in a thriving import and export business. CSX de México recently hosted its 15th annual customer forum in Mexico City, giving shippers, CSX representatives and other transportation leaders the opportunity to discuss how to maximize the trade relationship between the U.S. and Mexico.  Thirty-one senior transportation and supply chain leaders represented companies from a cross-section of industries including metals, agriculture and food, equipment manufacturing, automotive, chemicals and paper.  A key topic was cross-border transportation including carload and intermodal rail best practices. The forum, a main stay for 15 years, alternates host cities between Monterrey and Mexico City.

Cross-border Trade Delivered by Rail

In 2016, trade between the U.S. and Mexico resulted in $525.1 billion in goods exchanged, which has increased over the course of 2017 (US Trade Representative).  

Top goods imported to Mexico from the U.S. include inputs such as metal coils, rebar and other construction and manufacturing goods, along with minerals, such as clay, which is a main component for the manufacturing of tile and toilets, paper products to create cardboard for the finished goods manufactured in Mexico, and chemicals needed to manufacture plastics. Top exports from Mexico to the U.S. include beer, home furnishings, finished automobiles and appliances such as ranges, refrigerators and washers and dryers.

“Trade between the U.S. and Mexico is at an all-time high,“ said Rodrigo Garcia Del Rio, regional sales director, Latin America. “As businesses continue to grow on both sides of the border, developing a competitive advantage is important. Through our partnerships with other Class 1 railroads, CSX is able to deliver a seamless cross-border rail solution, providing shippers an efficient and consistent way to move goods between manufacturing sites and distribution points. Our expertise in-market is a built-in competitive advantage for our customers looking to do business between the US and Mexico. ” 

Increasing Efficiencies for Cross-border Shippers

During the forum, attendees heard from Arthur Adams, assistant vice president of business development for CSX, who provided an update on the state of the railroad, including increased efficiencies realized during CSX’s transition to Precision Scheduled Railroading (PSR).

 

 


Adams discussed how the rollout of PSR has been swift and focused on delivering a faster, more reliable service product for customers. Following transitional issues in Q3, rail service across the CSX network has returned to, and in some cases exceeds, 2016 levels. For more information on current service performance, visit csx.com/ServiceMetrics.

By running a more efficient railroad, CSX is offering even greater benefits to cross-border shippers to cross-border shippers who can partner with CSX to amplify the benefits of PSR by resourcing appropriately to cycle equipment quickly to avoid idle dwell, streamlining processes to make local service more predictable and planning with the new operating model in mind (such as pre-blocking cars to facilitate in-transit switching).

Arthur Adams, assistant vice president business development, addresses customers during the 15th annual CSX de México customer event

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“Supply chain professionals are increasingly managing the complexities of moving goods between countries and across continents,” said Adams. “Cross-border supply chains require collaboration both up- and downstream to ensure goods are sourced, procured, transported and delivered on-time; while navigating customs requirements, trade agreements, regulatory changes and more. “The efficiencies realized under the PSR operating plan are delivering shippers on both sides of the border a faster, more efficient end-to-end rail solution.”

Choosing Rail for Cross-border Moves Results in a Green Benefit for the Bottom Line

Rail transportation connects companies in Mexico and the U.S., providing a cost-effective, efficient and reliable mode of transportation to move goods cross-border. According to Judith Trujillo, Deputy Director of the Transportation from the Mexico Department of Environment and Natural Resources, in addition to the bottom-line benefits there are profound environmental benefits associated with moving freight by rail.

Trujillo represents Transporte Limpio, the Mexico Department of Environment and Natural Resources’ green transportation program, the equivalent to the U.S. Environmental Protection Agency’s Smart Way program and the FleetSmart initiative in Canada.  She shared with CSX’s customers why green shipping is important and illustrated how companies can adopt practices to reduce the carbon footprint of their supply chain.

“Companies at the leading edge of corporate responsibility are leveraging strategies and technologies to develop a sustainable supply chain. These companies are generating not only environmental benefits, but also an economic competitive advantage,” said Trujillo. “Modal choice greatly impacts a company’s carbon footprint. Rail is the most environmentally friendly way to move goods over land and should regularly be evaluated when shipping freight between Mexico and the U.S.”

For more information on green transportation practices, visit Transport Limpio, Smart Way or FleetSmart online.

Get Started

Realize new business opportunities through improved cross-border transportation. Get started moving freight between the U.S. and Mexico with CSX Transportation. Contact Jason Kerkezi, international sales director, or Rodrigo Garcia Del Rio, regional sales director, Latin America, to learn more.