CPKC completes construction of second span of international rail bridge linking Laredo, Texas and Nuevo Laredo, Tamaulipas

Rhea-AI Summary

Canadian Pacific Kansas City (CPKC) has completed construction of a new international railway bridge span connecting Laredo, Texas, to Nuevo Laredo, Tamaulipas. The US$100 million project, named the Patrick J. Ottensmeyer International Railway Bridge, more than doubles CPKC's capacity at North America's largest international trade port of entry.

The new 1,170-foot bridge features a ballasted deck plate girder design with six reinforced concrete piers, positioned 35 feet from the existing track bridge. The expansion includes 4,500 feet of new track and enhanced security features, including a VACIS X-ray inspection system and surveillance cameras. The project, which began in late 2022, aims to accommodate growing U.S.-Mexico trade through the only railroad crossing at this border point.

Positive

• More than doubles freight capacity at North America's largest international trade port
• US$100 million infrastructure investment enhancing cross-border capabilities
• Enables simultaneous bi-directional train operations
• Strengthens security with new X-ray inspection system and surveillance

Negative

• None.

Insights

Infrastructure Analyst

The completion of the $100 million Ottensmeyer International Railway Bridge represents a significant infrastructure enhancement for CPKC's cross-border operations. By doubling capacity at North America's largest international trade port of entry, this investment strategically positions CPKC to capture growing U.S.-Mexico trade flows. The new 1,170-foot span enables simultaneous bi-directional train movements, which will substantially improve operational efficiency and reduce bottlenecks at this critical border crossing.

The enhanced security features, including the VACIS X-ray system and surveillance cameras, should expedite customs clearance while maintaining robust border security. This infrastructure upgrade strengthens CPKC's competitive advantage in the important Mexico-U.S. freight corridor and should drive long-term revenue growth through increased cross-border shipping volumes.

Transportation Industry Analyst

This project's completion marks a pivotal moment for North American rail freight transportation. The expanded capacity at the Laredo-Nuevo Laredo crossing addresses a major bottleneck in the continental supply chain. The timing is particularly strategic given the accelerating nearshoring trends and growing Mexico-U.S. trade relationships. The investment demonstrates CPKC's commitment to capitalizing on these structural shifts in continental trade patterns.

The enhanced operational efficiency should translate into faster transit times and improved service reliability for CPKC's customers, potentially leading to market share gains in the competitive cross-border freight market. This infrastructure upgrade strengthens CPKC's unique position as the only railroad offering single-line service between Mexico, the U.S. and Canada.

Patrick J. Ottensmeyer International Railway Bridge more than doubles CPKC capacity at the border

CALGARY, AB, Dec. 17, 2024 /PRNewswire/ - Canadian Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) said today it has completed construction of the new international railway bridge span over the Rio Grande from Laredo, Texas, to Nuevo Laredo, Tamaulipas.

"Completion of this internationally important project more than doubles our capacity to move freight through the border at the largest international trade port of entry in North America," said Keith Creel, CPKC President and Chief Executive Officer. "This is an important milestone that keeps Laredo-Nuevo Laredo at the center of North American trade, allowing the secure and efficient movement of more imports and exports across the U.S.-Mexico border.

"By linking expanding markets for our customers, this CPKC investment will accelerate growth between the industrial heartland of Mexico and points across the United States and Canada," Creel added.

Kansas City Southern (KCS) broke ground on the project in late 2022. Built to accommodate growing trade between the United States and its largest trading partner, Mexico, the rail bridge now will be known as the Patrick J. Ottensmeyer International Railway Bridge. Its name honours the last president and chief executive officer of KCS, Patrick J. Ottensmeyer, who passed away in July 2024.

"Pat's leadership and vision were instrumental in the development and successful completion of this project," said Creel. "His legacy lives on in the work we do at CPKC each and every day, enabling growing international trade across three great nations – Canada, the United States and Mexico."

The completion of this US$100 million rail bridge and track work expands the capacity of the most secure and efficient railway trade corridor between the United States and Mexico.

Key features of the Ottensmeyer Bridge:

• New second track bridge with total length of 1,170 feet.
• Ballasted deck plate girder bridge built with six reinforced concrete piers.
• Second track bridge constructed on the right-of-way roughly 35 feet from existing track bridge, allowing trains to operate in both directions at the same time.
• 4,500 feet of new track.
• Enhanced border security investments, including a new VACIS X-ray railcar inspection system and surveillance cameras.

The Ottensmeyer bridge is the only railroad bridge crossing the Rio Grande River linking Laredo and Nuevo Laredo across the international border. The U.S. Presidential Permit for construction of the new bridge span was received in July 2020.

About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC. CP-IR

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SOURCE CPKC

FAQ

What is the cost of CPKC's new international railway bridge in Laredo?

The new Patrick J. Ottensmeyer International Railway Bridge and associated track work cost US$100 million.

How much additional capacity does CPKC's new Laredo bridge provide?

The new bridge more than doubles CPKC's capacity to move freight through the border at Laredo-Nuevo Laredo.

What are the key features of CPKC's new Ottensmeyer Bridge?

The bridge is 1,170 feet long with six reinforced concrete piers, includes 4,500 feet of new track, and features enhanced security with VACIS X-ray inspection and surveillance cameras.

When did CPKC begin construction of the Laredo border railway bridge?

Construction began in late 2022 under Kansas City Southern (KCS), which is now part of CPKC.

What security features are included in CPKC's new border railway bridge?

The bridge includes enhanced border security investments, featuring a new VACIS X-ray railcar inspection system and surveillance cameras.