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CNI & CSX Partner to Expand Intermodal Network to Nashville

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Key Takeaways

  • New CNI-CSX Canadian National Railway-CSX service will link Canada's West Coast to Nashville via Memphis.
  • All-rail route replaces trucking leg, cutting delays and emissions.
  • Expansion builds on their East Coast port partnership since 2019.

Canadian National Railway (CNI - Free Report) and CSX (CSX - Free Report) have signed a Memorandum of Understanding to launch a new intermodal rail service into Nashville, TN, strengthening freight connectivity across North America.

The service will move international containers from Canada’s West Coast gateways through Memphis directly into Nashville using a steel-wheel interchange, replacing the current trucking leg. This all-rail solution will speed up deliveries, improve reliability and offer a more sustainable supply chain option for shippers.

This new collaboration expands market access and gives customers a faster, greener and more dependable way to move freight. By creating a fully rail-based option, the service reduces highway truck traffic, cuts emissions and strengthens supply chain resilience for shippers.

The initiative builds on the companies’ successful interline partnerships, including their long-standing collaboration serving East Coast ports since 2019. With this expansion, Canadian National and CSX are creating more options for customers, boosting network efficiency and reinforcing their commitment to delivering integrated, customer-focused freight solutions.

Share Price Performance

Despite such tailwinds, the share prices of CNI have decreased 20.9% year over year, underperforming the 9.6% fall of its industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Canadian National’s Zacks Rank

CNI currently carries a Zacks Rank of #4 (Sell).

Stocks to Consider

Investors interested in the Zacks Transportation industry may consider LATAM Airlines Group (LTM - Free Report) and SkyWest (SKYW - Free Report) .

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.

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