DP World provides vehicle solution for Mexico-US trade route

DP World provides vehicle solution for Mexico-US trade route

DP World has designed a solution based on using 53-foot intermodal containers with racking systems to transport finished vehicles by rail from Mexico to the US and Canada.

From 1 June 2024, DP World will offer an industry-first, 53-foot intermodal container solution to transport cars via rail from Mexico to the US and Canada.

The service is based on loading finished vehicles into containers directly at the factories in Mexico or at designated stuffing yards close to the manufacturing hubs. The containers are then trucked to intermodal rail ramps and moved by rail to destinations like Los Angeles, Chicago, Detroit and Toronto.

At destination, the containers are trucked from the rail ramp to designated yards where the cars are unloaded and trucked to the dealerships. Door-to-door transits range from 8 to 14 days, depending on the route. It is estimated that the new service will enable an additional 30,000 finished vehicles to be transported between the trading partners in 2024.

Traditional 40-foot containers typically house a maximum of four cars, but the 53-foot-long containers can accommodate up to six vehicles, significantly enhancing efficiency whilst reducing costs for original equipment manufacturers (OEM).

DP World’s new ‘cars in containers’ innovation comes as the automotive logistics industry in North America continues to face challenges caused by RoRo and multilevel railcar capacity shortages, which are fueling the need for alternative outbound solutions, according to DP World.

It is estimated that DP World’s new service will enable an additional 30,000 cars to be transported between the trading partners in 2024. Since the beginning of 2024, the company has already transported over 5,000 cars across the Mexico–US border for American and Japanese-based OEMs with manufacturing in Mexico.

READ: DP World splashes €130 million in Romania port development

Christoph Seitz, Global Vice President Finished Vehicles at DP World commented: “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 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 programme to the wider market.”

Less than two weeks ago, DP World announced the development of its Australian activities with the inauguration of a new rail service at Stockland’s Yennora Intermodal Terminal.

More recently, DP World and the Saudi Ports Authority (MAWANI) commenced construction of a new SAR900 million ($240 million) logistics park at Jeddah Islamic Port.

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