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BNSF, J.B. Hunt and GMXT Create New Intermodal Service to Boost Transportation Efficiency Between Mexico and the U.S.

(BRK.A), (BRK.B)

In a strategic collaboration, BNSF Railway, GMXT, and J.B. Hunt Transport Services Inc. have announced the launch of a cutting-edge intermodal service connecting key regions in Northern and Central Mexico to the United States. This groundbreaking initiative is set to commence operations on January 1, 2024, offering businesses a faster and more sustainable transportation solution for seamlessly moving goods across the border.

BNSF Railway, recognized as North America’s largest intermodal rail, joins forces with GMXT, Mexico’s leading rail provider, and J.B. Hunt Transport Services Inc., a major player in supply chain solutions. The collaboration aims to enhance connectivity between Monterrey, Silao-Bajio, and Pantaco-Mexico City regions through the Eagle Pass, Texas border gateway.

This upcoming intermodal service is designed to be a day faster than the existing route from Monterrey to Chicago, providing customers with a reliable and eco-friendly option for cross-border transportation. By leveraging the capabilities of the largest intermodal railroad in the U.S., the largest railroad in Mexico, and the largest domestic intermodal carrier, this joint effort ensures a seamless connection within the North American intermodal network.

Katie Farmer, BNSF President and CEO, highlighted the commitment to growth in Mexico, stating, “Our organizations are committed to growth in Mexico and this joint service offering is a direct reflection of that commitment.” The collaboration is positioned to facilitate economic expansion and trade opportunities between the two nations.

The intermodal containers will interchange at Eagle Pass, Texas, with GMXT operating trains between the border crossing and Monterrey, Silao-Bajio, and Pantaco-Mexico City six days a week. An alternative option via the El Paso, Texas border gateway will also be available, providing flexibility for businesses.

John Roberts, CEO of J.B. Hunt, emphasized the resilience and cross-border solutions this new service brings to customers, stating, “This new service offering will provide resilient, cross-border solutions that give our customers optionality to support their growing supply chain needs in Mexico.” The collaboration aims to capitalize on the cost savings and sustainability benefits inherent in intermodal services, promoting a more efficient and environmentally friendly approach to transportation.

J.B. Hunt, with the largest intermodal fleet in North America boasting over 117,000 containers and nearly 7,000 trucks, stands at the forefront of this innovative venture. As the intermodal landscape evolves, this collaborative effort is poised to unlock new opportunities for businesses looking to thrive in the expanding markets of Mexico.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.