Dive Brief:
- Canadian Pacific Kansas City joined International Paper in breaking ground, last month, on a 468,000-square-foot packaging facility in Rankin County, Mississippi. The Canada-based railroad will manage inbound raw materials and outbound distribution for the company.
- The packaging facility, expected to become operational in Q4 2027, will have direct access to CPKC’s North America network from the outset, meaning rail is fully integrated into how the site will operate, Terry Cunha, spokesman for CPKC, told Supply Chain Dive in an email.
- “Through this connection, the facility will be able to leverage CPKC’s unique single-line network spanning Canada, the United States, and Mexico, enabling streamlined supply chains, reduced handling, and improved transit reliability,” Cunha said.
Dive Insight:
Through the new partnership with International Paper, CPKC plans to coordinate with the paper and pulp company so that its production needs are met and operations run efficiently.
“That level of alignment is intentional. We and IP take a similar approach to long-term infrastructure and network design, and this project is a continuation of that, building supply chains that are efficient, reliable, and designed to scale,” Cunha said.
Once completed, the facility is also expected to increase freight volumes and strengthen supply chain connections, per a CPKC press release.
International Paper isn’t alone in forming a direct relationship with a railroad to support its logistics needs. Last year, Hobby Lobby teamed up with BNSF Railway to open an intermodal facility in Oklahoma City.
Slated to open last November, the site aims to simplify the movement of loaded containers from the San Pedro Bay Port Complex in California to Hobby Lobby’s distribution network in Oklahoma City, according to a press release.
