Logistics services provider DP World is launching an intermodal service to transport finished vehicles by rail from Mexico to the United States and Canada, saying the approach helps OEMs manufacturing in Mexico that are facing a ro-ro and multilevel rail capacity crunch in North America.
According to Dubai, UAE-based DP World, its solution is an industry-first approach that uses 53-foot intermodal containers with racking systems to transport the automobiles. Traditional 40-foot containers typically house a maximum of four cars, but the 53-foot-long containers can accommodate up to six vehicles, significantly enhancing efficiency whilst reducing costs for OEMs, the company says.
The new service will load finished vehicles into containers directly at factories in Mexico or at designated “stuffing yards” close to the manufacturing hubs. The containers are then trucked to intermodal rail ramps, and moved by rail to destinations like Los Angeles, Chicago, Detroit, and Toronto.
At destination, the containers are trucked from the rail ramp to designated yards where the cars are unloaded and trucked to the dealerships. Door to door transits range from 8 to 14 days, depending on the route. It is estimated that the new service will enable an additional 30,000 finished vehicles to be transported between the trading partners in 2024.
DP World releases the offering as Mexico surpassed China in 2023 to become the U.S.’s top trading partner, largely thanks to a burgeoning cross-border relationship based on Mexico’s growing manufacturing sector, particularly in automotive. This was bolstered by the 2020 United States-Mexico-Canada Agreement (USMCA), the company says.
