12:47 PM EST, 12/17/2024 (MT Newswires) -- CP and Americold last week announced plans to explore co-development opportunities in Mexico as part of their strategic collaboration to optimize temperature-sensitive commodity flows between the U.S., Mexico and Canada.

This follows plans announced in February for CP's initial development with Americold at its Intermodal facility in Kansas City, which is expected to be up and running mid-2025. RBC sees this collaboration as representing a further opportunity for over the road conversion, with refrigerated goods from Mexico to the U.S. currently being primarily transported by truck.

CP operates the largest refrigerated container fleet and that RBC views the company as well positioned to capitalize on this opportunity. "We have seen first-hand CP have success with co-location agreements during our West Coast Port Tour and view last week's announcement as providing a platform for growth."

The Refrigerated Market represents a US$150 million revenue opportunity which RBC believes CP is well positioned to execute on in the medium term.

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