Union Pacific Opens Kansas City Intermodal Terminal, Strengthening Freight Connectivity in the Heart of America
Union Pacific Railroad has officially marked a significant milestone in its ongoing intermodal expansion strategy with the grand opening of its newest facility—the Kansas City Intermodal Terminal (KCIT)—in Kansas City, Kansas. This development represents the fourth intermodal terminal the company has launched since 2021, underscoring Union Pacific’s commitment to meeting the evolving needs of shippers while increasing its nationwide intermodal capacity.
The KCIT, strategically positioned near a network of major highways and interstate corridors, will serve as a crucial hub in Union Pacific’s intermodal rail network. Its location offers shippers direct, seamless access to rail services with fast, truck-competitive transit times, making it an attractive alternative to long-haul trucking. This combination of accessibility, efficiency, and reliability is expected to bolster freight movement across the Midwest and beyond.
A Strategic Investment in America’s Supply Chain
In announcing the new terminal, Kenny Rocker, Union Pacific’s Executive Vice President of Marketing and Sales, emphasized that the KCIT is more than just a new facility—it is a strategic investment in the nation’s supply chain infrastructure.
“This new terminal reflects our commitment to building for the future and providing our customers with convenient and cost-effective access to the U.S. supply chain,” Rocker stated. “Our customers want faster, more reliable freight options, and this terminal delivers.”
Union Pacific’s decision to open a new intermodal terminal in Kansas City aligns with broader industry trends. As supply chains become increasingly complex and customer expectations shift toward faster, more predictable delivery schedules, railroads are positioning themselves as competitive, environmentally friendly alternatives to trucking for medium- and long-distance freight.
The KCIT’s role will be to facilitate the movement of both domestic and international containerized shipments, including agricultural products like grain, consumer goods, refrigerated commodities, and auto parts. This mix of cargo categories reflects the diverse economic activity of the region, which is often referred to as the “Heart of America” due to its geographic centrality and importance in national logistics.
Reducing Congestion and Emissions
One of the most notable benefits of the KCIT is its potential to reduce the volume of freight transported by truck over long distances. By converting more truckload shipments to intermodal rail, Union Pacific will help ease congestion on highways, extend the life of critical road infrastructure, and reduce environmental impact.
Rail transportation is significantly more fuel-efficient than trucking, with trains capable of moving one ton of freight more than 400 miles on a single gallon of fuel. This efficiency translates directly into lower greenhouse gas emissions, which supports Union Pacific’s broader sustainability initiatives and aligns with national goals to reduce transportation-related carbon output.
Facility Features Designed for Growth
The Kansas City Intermodal Terminal has been designed with both current capacity needs and future expansion in mind. Its infrastructure includes two newly paved parking lots to accommodate increased truck traffic, as well as additional working tracks to improve operational efficiency during peak shipping seasons.
To enhance truck turnaround times, the facility will employ precision gate technology, enabling automated truck entry and exit. This system minimizes the need for manual processing, speeds up driver throughput, and reduces idle times, which in turn lowers fuel consumption and emissions for drayage operators.
Union Pacific has also ensured that the site has ample space for future development, meaning the KCIT can expand its footprint and capabilities as market demand increases. This flexibility is crucial in a logistics environment where capacity requirements can change rapidly due to economic shifts, seasonal surges, and changes in global trade flows.
Enhancing West Coast Connectivity
Alongside the KCIT opening, Union Pacific announced a strategic change to its West Coast domestic service routing. The company will shift its KCIT domestic service from the Intermodal Container Transfer Facility (ICTF) in Long Beach, California, to the City of Industry terminal in Southern California.
This adjustment is intended to improve efficiency, offering KCIT-bound domestic units access to Union Pacific’s expedited premium network six days a week. The change will provide shippers with a transit time improvement of more than 25% compared to current industry options, delivering up to 25 hours in savings for the cross-country journey. In practical terms, this means freight can move from the West Coast to Kansas City in just over 2.5 days—making rail a time-competitive option with trucking for many routes.
The City of Industry terminal offers operational advantages such as efficient drayage management and better integration with regional distribution networks. The move is expected to enhance market access for customers, streamline logistics planning, and offer greater scheduling flexibility.
Kansas City’s Role in National Freight Movement
Kansas City has long been recognized as one of the most important freight hubs in the United States, sitting at the intersection of multiple Class I rail lines and major interstate highways, including I-35, I-70, and I-435. Its geographic location makes it an ideal staging point for cargo moving between the West Coast, the Gulf, and the East Coast, as well as for north-south trade with Canada and Mexico.
The KCIT’s opening further solidifies Kansas City’s standing as a central link in the country’s freight transportation network. Shippers using the terminal will be able to reach major markets efficiently, with rail service connecting to coastal ports, inland population centers, and industrial regions.
Part of a Larger Expansion Strategy
The Kansas City Intermodal Terminal is the latest in a series of investments Union Pacific has made to expand and modernize its intermodal network. Since 2021, the railroad has opened three other terminals in key growth markets, each designed to improve network fluidity, increase terminal capacity, and reduce bottlenecks.
This expansion reflects the company’s recognition that intermodal growth will be a central driver of its long-term revenue and profitability. As e-commerce volumes increase, manufacturing supply chains become more time-sensitive, and companies continue to prioritize sustainable shipping methods, Union Pacific aims to position itself as the intermodal carrier of choice for shippers across North America.
With the KCIT now operational, Union Pacific is well positioned to handle increased freight volumes in the Midwest while offering customers faster, more reliable service to and from the West Coast. The combination of strategic location, advanced terminal technology, and integration with the premium rail network is expected to attract new business while deepening existing customer relationships.
Union Pacific’s investments in Kansas City and other intermodal terminals demonstrate that the railroad is not only responding to current market needs but also anticipating future growth opportunities. By continuing to expand its intermodal footprint, the company is reinforcing its role as a key player in the transformation of America’s freight transportation landscape.