John Brooks: Tom, I just would add to Keith’s comments. I don’t see shift. It’s a truck lane either out of Mexico or Texas that we’re focused on. And frankly, there is a significant with the terminal development we’ve got going on at Wiley that is non-intermodal focused, the automotive, the transload development we’ve got going on in Dallas market, the carload business opportunity in that lane that I think is untapped is a great growth story and that those markets are open up to both NS and CSX. There’s just never been for whatever reason the intense level that we will bring to the sales approach of growing that lane. And frankly, we’ve had so many other irons in the fire and areas of focus. We’re now kind of shifting to how we grow that as part of this portfolio. And I see it all as additives.
Keith Creel: And I would say we’re partnering with the right folks too. We’re super excited about the partnership with Schneider, the same partnership that’s allowing us to grow that great M&A service is I think going to meet or exceed this opportunity when we talk about this new gateway we’re creating.
Tom Wadewitz: Maybe just one brief follow-up, do you think it’s more volume is Dallas origination or Texas origination or is more of the new business with CSX going to be Mexico origination?
John Brooks: Well, there is a lot of certainly Texas, Atlanta type traffic, Tom, it’s truck and as you know that market is extremely tough right now with the truck capacity and spot rates. So it’s hard for me to put a percentage on it. I would say maybe broadly speaking that might be a slightly bigger intermodal type market, but it’s highly competitive and we’re going to have to find those customers and those commodities that fit our model and are willing to pay for that servicing capacity. I can tell you my team’s focus and my focus with NS and CSX is going to be in Mexico. That’s where we can generate a length of haul. We can leverage the great service Mark and team are providing down within that marketplace. And with all the industrial development going on down in Mexico, we’ve got over 40 projects kind of active right now that will represent significant volume growth opportunities in intermodal.
Over the next 2 to 3 years, that will sort of fit right into that wheelhouse of that service into the Southeast U.S.
Keith Creel: I think the other complementary piece of that book, Tom, is all the automotive development plants that are being developed and that will soon open on specifically, in this case, the CSX. So, as those supply chains get established, those parts that get moved from Mexico to the Southeast and parts from the Southeast to Mexico, that ecosystem for us to be able to have a competitive lane that takes right now to finish vehicles that are being produced today. There are thousands of carloads, potential rail carloads of finished vehicles that are on that highway that are moving between the Southeast markets where they’re produced for Glovis perhaps going into the Dallas markets. Those are right for opportunities, rail wins, the environment wins, competition wins. This is all a good story.
Operator: Your next question will come from Benoit Poirier with Desjardins Bank Securities.
Benoit Poirier: Just to come back on the previous question with respect to, obviously, there’s a lot of momentum at Lazaro with the 40% increase in volume. It looks like that the, there’s China that is also bypassing, the U.S., so sending stuff in Mexico. I’m just wondering, how much is it the driver with respect to the overall volume increase? We’ve seen not too long ago that the Mexican government announced that it would apply some tariffs, on some imported goods, so they want to protect kind of the Mexican and the U.S. economy. Just wondering whether it’s the kind of something to keep in mind? And just in terms of cargo diversion, have you seen some on the back of the labor issues? And if you could give an update on St. John, that would be great.
John Brooks: Yes. So Benoit, I’m not going to speculate on whether or not the Mexican government does something in terms of managing Chinese imports versus their own production. I do believe we have seen some of the surge relative to some of that business coming into Mexico today. But the fact of the matter is Lazaro has capacity, has low on dock to well. And frankly, I think the steam ship lines and beyond just maybe transpacific freight, South American freight are recognizing Lazaro as an alternative. And is that because a looming East Coast and looking at that as an alternative to going through the Panama Canal, I think all that’s part of the story. And frankly, Benoit, we’re out selling it hard. We believe it can become a complement to Vancouver and the West Coast of California and give shippers another option.
And frankly, our partner, Hapag-Lloyd and their announcement with Maersk and the formation of Gemini as you look to 2025 with Maersk relationship and doubling the capacity at Lazaro, I think presents again CPKC a tremendous opportunity with those companies. I’d say our St. John volumes have sort of settled in and actually moderated here lately. I think we are seeing some impacts in East Coast imports relative to some of the trade challenges, I guess, that the world is facing in that port. Now that being said, we’re watching close what’s going to take place at the core of Montreal and in terms of potential strike there. And if in fact we get a fall labor disruption on the U.S. East Coast, I think both of those we’re keeping both of those stories topical with the steamship lines as St. John being an alternative if in fact we do have disruptions in that area.
Operator: Your next question comes from Ravi Shanker with Morgan Stanley.
Unidentified Analyst : This is Christina on for Ravi. Apologies for earlier. Can you guys hear me now?
Keith Creel: Yes, we can.
