DP World has introduced an industry-first solution using 53-foot intermodal containers with racking systems to transport finished vehicles by rail from Mexico to the United States and Canada.
Starting 1 June 2024, DP World will offer this innovative 53-foot intermodal container service, enabling the transport of cars via rail from Mexico to the US and Canada. Vehicles will be loaded into containers directly at Mexican factories or designated stuffing yards near manufacturing hubs. These containers will then be trucked to intermodal rail ramps and transported by rail to destinations such as Los Angeles, Chicago, Detroit, and Toronto.
At the destination, the containers will be trucked from the rail ramp to designated yards where the cars will be unloaded and delivered to dealerships. Transit times range from 8 to 14 days, depending on the route. The new service is expected to transport an additional 30,000 finished vehicles between these trading partners in 2024.
Traditional 40-foot containers typically hold up to four cars, but the 53-foot containers can accommodate up to six vehicles, significantly increasing efficiency and reducing costs for original equipment manufacturers (OEMs). DP World is currently the only logistics company offering this intermodal 53-foot container solution for finished vehicles.
In 2023, Mexico surpassed China as the US’s top trading partner, driven by a growing cross-border relationship and Mexico’s expanding manufacturing sector, particularly in automotive. This growth has been further supported by the 2020 United States-Mexico-Canada Agreement (USMCA).
DP World’s innovative ‘cars in containers’ solution comes in response to challenges in the North American automotive logistics industry, including ro-ro and multilevel railcar capacity shortages, necessitating alternative outbound solutions.
DP World’s new service is expected to facilitate the transport of an additional 30,000 cars between the trading partners in 2024. Since the beginning of the year, the company has already transported over 5,000 cars across the Mexico–US border for American and Japanese OEMs with manufacturing operations in Mexico.
“Our extensive experience shipping cars in containers worldwide, the large racking fleet we can deploy globally within weeks, and our expert teams and hyper-focus on quality and service have enabled DP World to provide this unique solution in a challenging environment. Our initial volume shipments this year have proven the concept that the 53-foot intermodal solution is a viable alternative during times when traditional capacity is tight, so we decided to officially offer the program to the wider market,” stated Christoph Seitz, global vice president of finished vehicles at DP World.
