OREANDA-NEWS. BNSF Railway and Ferromex (FXE) announce their new intermodal service between Chicago and Silao, Guanajuato, Mexico. BNSF and FXE hosted customers, Intermodal carriers and elected officials during an opening event to showcase the new service at the expanded FXE Silao Intermodal Facility inside the Inland Port of Guanajuato in Silao, Guanajuato. This new intermodal service provides customers with a reliable and a fast transportation option to move goods across the border. The new service is scheduled to start May 27.

"Our partnership with Ferromex to launch this service from Chicago to Silao means that automakers and manufacturers in the U.S. and Mexico will now have direct access to the advantages of intermodal rail in the Bajio region," said Steve Bobb, BNSF executive vice president and chief marketing officer. "This service offers Mexico's fast growing manufacturing sector in the Bajio region a simple way to reduce trucking costs and delays."

Trains carrying intermodal containers will interchange at El Paso, Texas to and from FXE, Mexico's largest railroad, which will operate the trains between the border crossing and Silao five days a week. Intermodal shipping is the transport of shipping containers using multiple modes of transportation - in this case, truck and rail. This new intermodal service will provide customers with opportunities for growth in the expanding Mexico market.

"Mexico is the United States' third largest trading partner with a yearly trade of just over USD 500 billion. This translates into 14,000 trucks crossing between our borders on a daily basis," said Fernando Lopez, FXE's Chief Marketing Officer. "We created this intermodal train to serve such a market, delivering not only a consistent and reliable alternative, but a solid competitive advantage for North America as a region."

The service is better at the border when compared to trucking because there is no cross-border trucking across congested highway bridges. Southbound shipments are moved in-bond (which means shipment documentation is handled at the final destination) to minimize Mexico Customs clearance delays. Once the shipments arrive in Silao customers can clear their cargo with the customs broker of their choice through Mexico Customs. Northbound shipments are pre-cleared by a customs broker of the customer's choice with U.S. Customs.

BNSF and FXE have made significant investments and improvements to ensure the reliability and operating success of their rail networks. In 2014, FXE has its Board's approval to make up to \\$519 million in capital investments. BNSF, the world's largest intermodal rail carrier, will invest a rail industry record \\$5 billion. These investments will benefit all BNSF and FXE customers and ensure long-term ability to handle future growth.