Key Rail Project Will Link Mexico, US, CanadaBy Rodrigo Brugada | Fri, 05/07/2021 - 19:08
The new US-Mexico-Canada Agreement is bringing new opportunities for trade and in order to fully take advantage of them there are certain steps to be taken. An ambitious tri-national project, the USMCA Corridor, aims to improve logistic across the three countries through a trail line that will link numerous cities from Sinaloa to Canada. Now, a critical process in its development is going on in Canada.
Trade entails, among many other things, the movement of goods. As such, one of these steps is ensuring swift transportation to connect local goods to the global market. While the main distribution network works though freight ships, the main way for connecting freight to inland areas is through rail, as stated by the AAR.
The USMCA aims to facilitate logistics between Mexico, the US and Canada through a rail project that will link the port of Mazatlan in Sinaloa, Mexico, to Winnipeg in Manitoba, Canada. Throughout its course, it is projected to stop in key locations such as Dallas and Chicago, as stated by Trains.
Right now, a critical process in the railway’s development is undergoing as two Canadian firms, Canadian National and Canadian Pacific, are locked in a bidding war for control over Kansas City Southern (KCS), as reported by The Globe and Mail. KCS plays a fundamental role in the project through KCS Mexico. It links the western port city of Lazaro Cardenas in Michoacan, the eastern Port city of Veracruz and crosses the border at Laredo, Texas.
As reported by BNAmericas, for the Mexican side, a significant project will be to build about 80 percent of the new infrastructure to link the port city of Mazatlan to the rest of KCS Mexico and the rest of the corridor. Caxxor Group will coordinate this development and is projected to raise $3.3 billion in initial investment. This development will include the maintenance of existing ports and the construction of a new port and shipyards in Mazatlan, the creation of industrial parks in several locations in Mexico and the construction of 87km of railway tracks in Sinaloa that will connect with the rest of existing railroads in Mexico, the US and Canada, as stated by Mexico News daily.
This development focuses on the north-northwest region and bring growth in economic and employment terms. Linking the port with the rest of KCS Mexico could also mean greater access to the south-southeast regions through the Mayan Train and the Interoceanic Corridor and subsequent benefits to the area.