Just a few days ago the proposed merging of Canadian Pacific Railway and Kansas City Southern was announced, which would bring to the market the first railway system connecting the three countries of the United States-Mexico-Canada Agreement (USMCA).
Joining these two railway companies will connect Canada with the Midwest and south-central U.S., all the way down to Northeast and Central Mexico, including important ports in the Mexican coasts of the Pacific Ocean and the Gulf of Mexico.
For the poultry industry in Mexico this means a greater ease to bring corn, soybeans, grain co-products and maybe other Canadian grain and oilseed options. I believe this is great news in times like the ones we are living now. Having an easier grain availability from the largest grain producer and exporter in the world right next door is enviable, particularly when Mexico cannot or does not produce enough to cover its needs.
Statements from both companies highlight that this will provide new and competitive options in transportation and will promote economic growth in North America (Mexico included).
Another advantage is the fact that railroads are supposed to provide reduced greenhouse gas emissions for a more sustainable supply chain. One nice checkmark in our list for those criticizing animal production practices. Here you go! Thank you.
Strengthening the USMCA will end up being positive for the three partners. Securing grain distribution in Mexico for feeds is a must and a relief. It is basically the only country in the world purchasing U.S. grains by railroad. As a matter of fact, the U.S. considers three Export Catchment Areas (ECAs) for corn export – Pacific Northwest, Gulf and Southern Railroad, the latter exclusive for exports to Mexico. The rest of the world depend on vessel transportation.
Tired of bad pandemic news? Now you have a positive one. I am sure bright times are coming.
Oh! One extra thing - let's just hope that problems in Mexico with robbery of transported goods in trains and trucks stops soon. Otherwise, we will still have a problem.
What do you think?
